	2021		2020
	US$’000		US$’000

Provision for onerous contracts (i)		1,019		80
		1,019		80

(i)

Provision for onerous contracts represents the present value of the future charter payments of short-term leases that the Group is presently obligated to make under non-cancellable onerous operating charter agreements and contracts of affreightment, less charter revenue expected to be earned on the charter. The estimate may vary as a result of changes to ship running costs and charter and freight revenue

Analysis of provision for onerous contracts:
Balance at 1 January	80		405
Provision raised	1,019		-
Released to profit or loss	(80	)	(325	)
Balance at 31 December	1,019		80