Danish shipping company Dampskibsselskabet Norden A/S (Norden) has purchased a 2009-built MR product tanker with a cargo capacity of 50,000 tonnes, taking advantage of low asset prices on the back of weakening tanker markets.
The South Korean-built vessel is expected to be delivered in July 2017 and will be renamed Nord Pearl.
The purchase marks Norden’s first tanker acquisition since it sold 3 Handysize product tankers last year.
In addition to the purchase of Nord Pearl, Norden has entered into long term charter agreements for a further 2 MR product tanker newbuildings and has thus concluded 4 MR product tanker newbuilding charters so far this year. The vessels are scheduled to be delivered to the company in the years 2018-2020. All agreements are with purchase options.
“Norden used the strong tanker market in 2015 and first half of 2016 to take cover. The increase in cover led to a decrease in capacity for 2017 and onwards, but in the wake of the weakening market, Norden has taken advantage of the reduced tonnage prices to increase our capacity and exposure at attractive cost levels. We can do this in the comfort of having an excellent product tanker operating arm in form of Norient Product Pool, and benefit of the premium earnings that they generate,” Jan Rindbo, the company’s CEO, said in a comment.
At the end of first quarter of 2017, Norden’s tanker fleet consisted of 36 vessels – 25 MRs with a cargo capacity of 45,000-50,000 tonnes and 11 Handysize vessels with a cargo capacity of 35,000-37,000 tonnes. 19 tankers are owned by Norden while the rest are chartered vessels.