NOTES TO
FINANCIAL STATEMENTS
December 31, 2015
37
OPERATING LEASE ARRANGEMENTS (CONT’D)
(a)
Non-cancellable operating lease commitments - Group as lessee (cont’d)
Operating lease commitments in respect of the Group’s charter hire of vessels are calculated based on the
charter hire rates applicable as at the end of the financial year. These lease contracts contain provisions
for renegotiation of the charter hire rates on a 3 monthly, 6 monthly or annual basis.
(b)
Operating lease commitments - Group as lessor
The Group has various operating lease agreements with third parties relating to the rental of office,
residential premises and charter hire of vessels. These non-cancellable leases have remaining non-
cancellable lease terms of between one and three years. Some leases include a clause to enable the
charterer to extend the charter hire contract at the charterer’s option for a specified period.
At the end of the reporting period, the Group has contractedwith lessees for the following futureminimum
lease payments:
Group
2015
2014
US$’000
US$’000
Within one year
8,307
15,636
In the second to third years inclusive
112
167
8,419
15,803
38
SEGMENT INFORMATION
For management purposes, the Group is organised on a world-wide basis into two main operating divisions,
namely:
–
Container Shipping
Providing feeder services for the transportation of containerised cargo between Singapore as a “hub”
port and other outgoing“spoke”ports in Asia, as well as inter-region and intra-region container shipping
services to end users.
–
Bulk and Tanker
Providing transportation of special dry bulk, liquid and gas cargo in the international as well as Indonesian
domestic market.
–
Others
Include forwarding, agency and other services.
135
FOCUSED & RESILIENT
SAMUDERA SHIPPING LINE LTD
ANNUAL REPORT 2015
