Singapore-based Eastern Pacific Shipping has finally found a yard to demolish one of its ageing converted VLOCs in line with its corporate safety and environmental standards.
TradeWinds earlier reported how the sale of the 290,000-dwt Shagang Giant (built 1993) to the Shree Ram yard in India fell through last month because of the lockdown announced in the country.
The collapse of the deal put Eastern Pacific in dispute with the cash buyer of the vessel, NKD Maritime, which works closely with Shree Ram.
The demolition deal was the first in a new Environmental Social and Governance (ESG) policy from Eastern Pacific to demolish ships only at yards that have a statement of compliance with the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships.
Shree Ram is regarded as having some of the highest environmental and safety standards in India.
After the deal collapsed the vessel was positioned off Karachi Pakistan.
Brokers now say a new deal has been struck to bring the ship back to India with the sale price indicating green recycling.
According to brokers the Shagang Giant has been sold for $280 per ldt which is a considerable mark down on the $370 per ldt it reportedly achieved in the original sale in March before the global coronavirus crisis took off.
Automatic Identification System (AIS) data shows the vessel is still anchored off Karachi.
However, the same issues that caused the collapse of the original sale remain in place. India recently extended its lockdown for a further two weeks until 17 May. The ship is understood to have Indian crew onboard.
India has recently launched a standard operating protocol to allow Indian crew ashore. The protocol involves strict Covid-19 testing and quarantine. Despite the measures internal travel restrictions remain in place that may prevent crew from returning home.
Broker Clarksons said in a report that ships will find it difficult to beach in the Indian subcontinent. “With many vessels still reported to be at anchor outside major recycling locations, there is still no clear indication as to when governments or port authorities will allow the import of ships,” Clarksons said.
