Scrap or cold lay-up planned for 10-20 MOL bulkers

14 Jun 2012
A significant number of MOL bulkers of 15 years or older will be scrapped or laid up

A significant number of MOL bulkers of 15 years or older will be scrapped or laid up

Japanese operator Mitsui OSK Lines (MOL) has announced plans for scrapping or cold lay-up of 10 to 20 Capesize bulkers, of 15 years or older, in consideration of this fiscal year’s worsening market trends.

MOL says it scrapped four vessels and temporarily laid up 10 others last year. Until now, the company scrapped Capesize ships that were past at least 23 years, but will now scrap younger ships. MOL plans to scrap five vessels by the end of March 2013 and is considering the disposal of several others.

Based on the current Capesize market conditions, MOL believes that the cold lay-up of about 10 ships for six months to a year will help restore an appropriate vessel supply-demand balance in the future. The company has begun selecting vessels and locations for cold lay-ups.

MOL is weighing measures to rejuvenate the fleet and increase vessel quality by accelerating scrapping. It will meet transport demand for iron and steel raw materials, which are positioned for mid and long-term growth which the company believes will give it an unchallenged position as one of the largest operators of Capesize bulkers.

The vessels will be scrapped at yards that conform to the ‘Guidelines to sell vessels for scrapping from an environmental viewpoint’ stipulated by MOL. The company has monitored scrapping yards to ensure that their environmental practices are in conformity to ISO14001 (or equivalent environmental management standards) and carefully evaluate their scrapping methods based on its own guidelines for environmental protection and occupational safety.

Links to related companies and recent articles ...

Mitsui OSK Lines Ltd MOL

view more