Bore Ltd plans to exit the general cargo CoA (contract of affreightment) business by the end of 2014, due to several years of overcapacity in the market and unsustainably poor profitability of the company’s small CoA fleet, which proved to be uncompetitive against larger players in the tough general cargo CoA market.
In an effort to shift their entire focus to the Ro-Ro segment, Bore is selling its fleet of six CoA vessels. M/V Fingard and M/V Swegard are in a sales process with expected delivery by the end of October 2014.
Bore’s compass vessels M/V Nordgard, M/V Sydgard, M/V Westgard, M/V Ostgard are in a process to be sold to Royal Wagenborg with expected delivery by the end of December 2014.
Nordkalk has agreed on a frame contract with Wagenborg covering the majority of Nordkalk’s sea-freights from 2015 to 2017.
Egbert Vuursteen, Wagenborg CEO, said: “Royal Wagenborg has been in the shipping business since 1898. The Baltic region has been our core market ever since and will be in the decades to come.
In response to the upcoming regulations for sulphur emissions in the Baltic region, Wagenborg has invested substantially in a new-building programme of ice-classed, fuel-efficient, multi-purpose vessels.
We are very pleased with our partnership with Nordkalk. This cargo-base will enable us to grow and extend our flexibility and competitiveness in the Baltic. We are sure that both family-owned companies will come to an excellent long-term cooperation.”