MOL said it will scrap or put into cold lay-up 10 to 20 capesize dry bulk ships because of worsening market trends.
The company scrapped four vessels and temporarily laid up 10 others last year.
Until now, the company said it had scrapped capesize ships that were 23 years or older, but will now scrap ships that are 15 or older. MOL has plans to scrap five vessels by the end of March 2013 and is considering the disposal of others.
Based on the current capesize market conditions, MOL said it believes “the cold lay-up of about 10 ships for six months to one year will help restore an appropriate vessel supply-demand balance in the future. The company has begun selecting vessels and locations for cold lay-ups.”
The investment bank Dahlman Rose’s Marine Shipping Morning Snapshot said Wednesday that the average capesize dry bulk charter rate was $3,988 per day, compared to $8,842 one year ago.
MOL plans to lay-up or scrap 10-20 bulkers
