Finland’s ESL Shipping still sees plenty of potential for rate rises for smaller bulkers after logging record earnings in the third quarter. The company, owned by the Aspo group, said operating profit to 30 September was €7.1m ($8.2m), against a loss of €0.1m a year ago. Revenue was up at €47.3m, from €31.6m in 2020. Rolf Jansson, chief executive of Aspo, said the current hot markets have led to the highest results in ESL’s history. “The very high demand for the transportation of forest industry products, sawn goods, and pulp, as well as metal industry products, has continued to increase cargo prices, important to ESL Shipping,” he added.

The handysize and supramax company operates 52 ships, of which 24 are wholly owned. Freight rates are much higher in all vessel categories, ESL said. “In the smaller vessel category, the price level in new and extended time-chartering contracts has increased, and is expected to still increase significantly,” the company added.

The shipowner is aiming to improve its flexibility, keeping under scrutiny the number and specifications of time-chartered bulkers. ESL said its competitive edge is based on its ability to responsibly secure product and raw material transport for industries and energy production year-round, even in difficult conditions.

Cargo volumes increased to 3.9m tonnes in the third quarter, from 3.1m tonnes a year ago. The company said ports have continued to be very congested in ESL’s main operating areas due to higher traffic volumes, and partly due to the impact of the coronavirus pandemic on terminal operations. Volumes among all steel industry customers increased significantly from the exceptionally weak comparative period, the owner added.

“The development of raw material prices and the uncertainty related to availability may affect the development of international cargo markets during the rest of the year,” the company added. And the shipowner warned that difficulties in the availability of semiconductors has also restricted production in the automotive industry in Europe, and this may also have an impact on transport volumes in the steel industry.