China’s Jiangsu Rainbow Heavy Industries (RHI) will shut its offshore design subsidiary Shanghai Ouwei Offshore Engineering Technology Co.
Shenzhen-listed RHI announced to the stock exchange on Friday that the decision to close the Shanghai-based subsidiary is due to the sluggish offshore market following the collapse of oil prices.
“We foresee that in the foreseeable years ahead, the offshore market will continue to stay weak in line with oil prices,” RHI stated.
RHI added that the move would help the group streamline its operations and better utilise its resources. Shanghai Ouwei Offshore Engineering Technology was established on 23 December 2014.
Baltic Dry Index dips below 600
The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, slipped Thursday as demand for capesize vessels fell.
The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, was down 6 points, or 0.99 percent, at 598 points.
The capesize index fell 24 points, or 2.4 percent, to 976 points.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $232 at $6,938.
The panamax index was flat at 545 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $4 to $4,352.
Among smaller vessels, the supramax index rose 2 points to 554 points, while the handysize index fell 1 point to 314 points.
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