Sinokor Merchant Marine has finally found a buyer to take on its aged VLOC despite the closure of South Asian scrapyards, cash buyers reported.
The HBIS Sunrise (built 1992) was reportedly sold at $310 per ldt on an “as is” basis for delivery in Singapore, inclusive of 2,700 tonnes of bunker fuel abroad.
The figure indicated gross proceeds of about $11.8m for the South Korean owner.
TradeWinds has approached Sinokor for comment.
According to VesselsValue, Sinokor bought tanker Orpheus Orchid from Idemitsu Tanker for $15.5m in September 2009 before converting the ship to HBIS Sunrise.
The vessel was constructed by Mitsubishi Heavy Industries.
Market sources said a cash buyer acquired HBIS Sunrise on a speculative basis and would retain the crew for at least some weeks before finding a scrapyard.
Since the closure of shipbreakers in India, Bangladesh and Pakistan in March, demolition rates have slumped to multi-year lows as trading nearly comes to a halt.
Shipowners and cash buyers have not been able to deliver scrap vessels to the world’s three main ship breaking nations, which are under lockdown to fight the coronavirus pandemic.
“A backlog of vessels continues to idle outside all subcontinent locations, with contracts and cancelling dates being frustrated by this unprecedented crisis,” GMS said.
“There is nothing either party can do when such an unforeseen global pandemic as this arises, so it is a question of how both parties can work together, in order to resolve and avoid unpleasant legal disputes.”
While India and Pakistan may gradually reopen their beaching facilities from Tuesday, Bangladesh is not expected to lift any restrictions before 26 April at the earliest.
“Some cash buyers are willing to place tentative numbers on vessels with short forward delivery dates, with each buyer having their own view of where price levels will lie when the market re-opens,” Clarksons Research said in its weekly note.
“Many in the industry are predicting that the markets will re-open at price levels below $300/ldt, but hopefully there will be an appetite for recycling upon re-opening that will support rates.”
