Taiwan Navigation is tidying up its fleet, with Shanghai-based shipbrokers saying that two bulker sales are imminent.
Chinese shipowners are considered the most likely buyers of the company's oldest panamax and a supramax of the same vintage, given the ships' trading patterns.
The 77,800-dwt Tai Progress (built 2004) has been inspected by a number of Chinese shipowners on its recent visits to northern mainland China.
Mounting competition
Calls to Taiwan Navigation to confirm the sales were not immediately successful, but the disposals fit with the company's ongoing fleet renewal programme.
TradeWinds reported in December last year that the company was embarking on a series of newbuilding orders, including four kamsarmaxes and the enlargement of two ultramaxes at Japanese shipyards Oshima Shipbuilding Co and Namura Shipbuilding.
Sale-and-purchase brokers believe that a price of up to $8m is likely for the Tai Progress. Unlike most Taiwan-owned ships, the vessel is not Japanese built but a product of Taiwan's own CSBC Corp's Kaohsiung shipyard.
"The price could be a little higher because of competition," one broker commented. "At least six shipowners have inspected it."
In general, the door is closed for import of international vessels for domestic Chinese trading, because domestic rates are not supportive now
The winning buyer, even if a Chinese company, will definitely not be acquiring the ship for domestic trading, as it is too old to meet mainland China's Tier II emissions requirements for tonnage imported into the Chinese flag.
Closed door
"Chinese owners are now mostly interested in five-year-old to eight-year-old panamax and supramax bulkers, and we have had several inquiries, but only for international trading," the broker said, speaking on condition that his company not be identified.
"In general, the door is closed for import of international vessels for domestic Chinese trading, because domestic rates are not supportive now."
A sale of the Tai Progress is expected within the coming week.
"Unlike European shipowners, a Taiwanese company will usually accept the highest bid when it has decided it is time to sell a ship, rather than withdrawing it if the offers are not good enough," the broker said.
Next up for the same seller is its oldest supramax, the 52,700-dwt Tai Happiness (built 2004). Offers had been invited by Monday this week, 24 June.
Taiwan Navigation is majority owned by the Taiwanese state but with a minority owTaiwan Navigation is majority owned by the Taiwanese state but with a small amount of its shares in the hands of private Taipei-based capesize owner Chinese Maritime Transport.
Taiwan Navigation is a shareholder in Taiwanese container line Yang Ming Marine Transport.
