Courage Marine Group reported a 53% increase in revenue to US$11.4 million ($16 million) for the three months ended Dec 31 as dry bulk freight rates recovered. The rise in the Baltic Dry Index from an average of 2,000 points in 4Q2008 to about 3,000 in 4Q2009 coupled with a gain on disposal of vessel lifted earnings by 91% to US$2.9 million.

Courage Marine owns and operates eight bulk carriers in the region, transporting coal, sand, cement, iron ore and minerals. Chairman Hsu Chih Chien says the strong recovery in bulk rates is due to China’s US$586 billion stimulus package. And he expects China’s import of coal to increase. This will benefit Courage Marine as coal makes up 50% of its cargo.

Still, he says the huge supply of new ship buildings over the next two to three years will have a severe impact on the freight rate market. “Most ships were ordered in 2007 when market was red hot. Now, many customers are defaulting and walking away from contracts.”

While this may affect revenues, Hsu sees a silver lining. “Being cash-rich, we can take advantage of acquiring ships at low prices.” In January, Courage Marine agreed to buy a Capesize vessel. With a cash balance of US$43 million, Hsu says the company may make more acquisitions.