Norwegian dry bulk operator Western Bulk managed to shrink its net loss in the first half of the year to USD million from USD 10 million reported in the same period in 2016.

Western Bulk said that the net result also exhibited “a very positive development” during the first half of 2017, increasing from the first to the second quarter, yielding a positive net result for the second quarter of 2017.

Net time charter result improved from USD 1.3 million in the first six months of 2016 to USD 15.1 million seen in the first half of this year, aided by an improved dry bulk market, market volatility, improved customer relationships, better operational performance and an increased fleet.

The first half of 2017 saw the Baltic Supramax Index 58’(BSI) perform better than many expected, particularly in February and March after the end of the Chinese New Year, before falling back again during during May, Western Bulk informs.

As a whole, the first half of 2017 ended more or less where it started at USD 8,500/day, but with variations from the low level of 6,430/day on February 6 to the higher level of 10,090/day on April 20.

“Rates are still low in a historical perspective, but considerably higher than the previous 2 years in the same period,” the company said, adding that “volatility in rates also improved, particularly in Q1-17, as rates increased sharply before falling off in Q2-17.”

The strength of the BSI in the first half of the year and particularly the first quarter “was better than many expected, and goes some way to showing that the market is slowly recovering and gradually closing the oversupply gap.”

The order book for new tonnage is slowly decreasing. Provided demand increases in line with expected development in GDP and trade volumes, the market is expected to gradually improve, Western Bulk said.