Singapore’s High Court has again given the go-ahead for the auction of a modern handymax bulker that was last operated by China’s Highrich Logistics.
The 37,300-dwt bulker Long Bright (built 2012) will be sold via a sealed-bid tender, with offers due at the Sheriff of Singapore’s office no later than 3pm on 19 February.
VesselsValue estimates a market value of $11.3m for a ship with the Shandong Huahai Shipbuilding-built vessel's characteristics, while Maritime Strategies International puts its value at between $10.4m and $12.6m.
However, it is unlikely the ship will fetch that much given that it has spent over a year in lay-up and its certificates have expired.
Satisfactory condition
A court-ordered survey describes the Long Bright as appearing to be in a sound and satisfactory physical state.
But it adds the surveyors could not determine the operational condition of the main engine and other mechanical equipment as the ship has been in cold lay-up since September 2017.
In addition, the report notes a lack of ventilation prevented surveyors from entering the cargo holds and bow thruster room, and that the accommodation onboard is in a less than desirable condition.
The Long Bright was arrested on 28 March 2018 by Singapore’s DP Shipbuilding & Engineering over an unpaid repair bill totalling SGD 267,000 ($195,000).
A senior Highrich official told TradeWinds at the time of the arrest that an unspecified Chinese bank had taken control of the ship a year earlier, together with a sister vessel, the 37,300-dwt Long Glory (also built 2012).
He said Highrich had lost control of its vessels due to debt problems.
The Long Bright was originally scheduled to be auctioned in August last year.
But a last-minute legal intervention by a Chinese financial institution meant the event was cancelled after bidding had closed.
The intervention now appears to have failed.
Newcomer to shipping
Highrich was a newcomer to shipping when it acquired the Long Bright and Long Glory in 2011 as part of a deal to buy four newbuildings at Shandong Huahai.
The pair had originally been ordered in 2006 by Sider Navi. Construction began in 2008 but the contracts were later abandoned due to delays and problems at the yard.
The other two ships, a pair of 36,000-dwt bulker newbuildings originally ordered by Pacific Carriers, was never delivered to Highrich after its own financial problems emerged.
TradeWinds was unable to ascertain the whereabouts of the Long Glory, which has not broadcast an AIS signal since late 2017.
