Idan Ofer’s Eastern Pacific Shipping has sold the last of its large bulkers that was built before 2000, the 266,000-dwt ore carrier Handan Steel (built 1994).
European scrap brokers say the vessel has gone to a 'green' recycling yard in Bangladesh for $274 per ldt or a total of $10.4m.
The buyer has an option to take delivery of the vessel in Colombo, TradeWinds understands. Ofer bought the large bulker as the tanker Han Ein August 2007.
Handan Steel was due for special survey last December, but it is unclear whether that had taken place.
New ESG policy
The disposal at a green demolition yard is in compliance with Eastern Pacific’s new environmental, social and governance (ESG) policy.
Eastern Pacific executives last year hammered out a new ESG strategy that included a policy to demolish ships only at yards with a statement of compliance with the Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships.
Earlier this year the company sold the 290,000-dwt ore carrier Shagang Giant (built 1993) for demolition to India's Shree Ram Group for $280 per ldt. It was Eastern Pacific's first green scrapping deal.
Extra step
“Green recycling is one of the things we have decided is important in our ESG. We have a clear policy that says we will only scrap at Hong Kong [Convention]-compliant yards and in selecting Shree Ram we have gone an extra step,” Eastern Pacific chief executive Cyril Ducau told TradeWinds in March.
“We got a few hundred thousand dollars less but it is part of our greater commitment,” he added.
The company is now left with one large ore carrier, the 299,000-dwt Wugang Cafu (built 2012).
Eastern Pacific has a fleet of 14 capesize bulkers that are trading.
The company also has two 209,000-dwt dual-fuel bulkers on order at Shanghai Waigaoqiao Shipbuilding (SWS) set for delivery in 2022.
