Challenges in the shipping market continue to affect the profitability of Norwegian shipowners'MPC container ships. MPC container ships closed at a loss in the second quarter of this year.

The company reported a net loss of $6.4 million in the second quarter of 2019 and a profit of $1.8 million in the second quarter of 2018.

"Container shipping industry continues to suffer macroeconomic uncertainties in the second quarter and the first half of 2019. One of the prominent factors is the unpredictability of trade tensions between the United States and China," said Constantine, CEO of MPC Container Ships. Constantin Baack explains.

"In addition, there are other geopolitical factors, such as the potential risk of a global economic slowdown, or the upcoming IMO 2020 low sulfur regulations," he continued.

As of June 30, 2019, revenue for the quarter was $47.8 million, compared with $46.9 million for the same period last year.

In the second quarter, the average TCE rate was $9,071 a day, down from $9,240 a day in the first quarter of 2019.

As of March 2019, because liner companies need to cover trade routes and ships are parked for washing facilities, the rates of larger ships have risen. MPC container ships said that due to the low frequency of installing washing systems on small vessels, power systems excluded feeder ships from the rate increase for most of the second quarter of 2019.

The company began installing scrubbers on 10 selected ships in June and will continue to install scrubbers on the remaining nine ships in the second half of the year.

On August 15, MPC container ships exercised options totalling $13 million under a loan agreement with Beal Bank. The funds will be partly used for refinancing AS Palina and AS Petra, and partly for investing in the installation of the ship's scrubbers.

In the first half of 2019, the company announced a presumed total loss of the Fortuna after it ran aground in September 2018. The ship was sold and delivered to its new owner in June 2019.

After the sale, MPC Container Ships have 68 container ships, of which 60 are wholly owned and 8 are joint ventures.

Regarding the overall macroeconomic outlook, MPC Container Shipping Company said that the remaining time of this year and the outlook for the months before 2020 would still be affected by IMO-related issues, complex economic situation and trade war risks.

However, the company said that the rebalancing of supply and demand may be realistic for some time to come.

"In the case of moderate growth, demand growth is more limited, coupled with the impact of IMO 2020, still pointing to market rebalancing."

"In uncertain times, strong balance sheets and prudent leverage are critical to balancing risks, and MPC container ships are still in a good position to benefit from expected market improvements," Baack concluded.