Hong Kong's Ocean Longevity has cleared out another of its oldest ships and is on the lookout for more deals.
The deal comes after a proposed en bloc sale of the vessel with two other panamax has fallen through.
TradeWinds understands that the 72,400-dwt Ocean Favour (built 1998) went to a UAE based buyer in a deal that closed this week. The buyer is identified by the one-ship registered owner name Stellar Ocean Transport LLC. The price for the Sasebo Heavy Industries-built ship is believed to have been very close to $6m.
That is significantly better than the market for the ship as estimated by VesselsValue, which puts a $4.85m trading price tag on a ship of the Ocean Favour's characteristics and a demolition value of $3.91m.
The sale leaves Ocean Longevity with a fleet of 30 dry bulk carriers up to 250,000 dwt.
It comes after the company sold the 42,700-dwt Heng Chang (built 1997) closed two weeks ago, TradeWinds reported in May that the sale of the IHI-built Heng Chang was in process at a price just upwards of $4m. The vessel has now been renamed Yi Ling.
Sources in the Fujian province shipowning sector believe the buyer of Heng Chang is Fuzhou-based owner Bill Zheng (Zheng Shiji), who operates four or five bulk carriers with co-investors as chief executive officer of Kind Faith Shipping.
TradeWinds recently reported on a revival of secondhand activity by buyers in the shipowning hub of Fuzhou, capital of Fujian province and a centre of small international trading shipowners.
Zheng could not immediately be reached for comment.
Ocean Longevity executives told TradeWinds its fleet plans depend on world trade factors, especially the outcome of the present US-Chinese trade dispute. But further disposals are possible, especially of the company's oldest tonnage.
TradeWinds reported in May that a deal was in the works to sell three veteran panamaxes en bloc, also to a Middle East buyer. The deal was to involve the Ocean Favour, the 74,800-dwt panamax Fortune Lady (built 1998) and the 72,400-dwt Ocean Pride (built 1997).
The other two vessels remain in the Ocean Longevity fleet but the company's only 1990s-built tonnage are considered sales candidates.
Ocean Longevity is controlled by chairman Kwai Szi Hoi (Gui Sihai). In addition to its dry bulk fleet it is a shareholder in Australia’s Brockman Mining, of which Kwai is also chairman.
