Braemar Shipping Services has put a cost reduction programme in place to counter the fall in revenues following lower activity levels and freight rates. The group says that over the summer, the tanker markets have seen both lower activity levels and freight rates which is resulting in reduced revenues. Braemar says that while it expected the tanker market to soften after the high levels experienced during 2015 there has been a marked slowdown. In the dry cargo markets, despite healthy demand and good transaction volumes, overcapacity continues to suppress freight rates to historically low levels. It says: "Accordingly, we have put in place a programme to reduce our costs in this area and ensure we are appropriately structured. "Our sale and purchase and offshore desks continue to perform in line with our expectations, with similar levels of activity to the previous year. "In addition, our US dollar denominated earnings will benefit from the weakness of sterling if the exchange rate is sustained at current levels; however the full beneficial impact from weaker sterling will be felt in the next financial year due to our rolling hedging policy."
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