Hong Kong-based Agritrade Resources Limited has decided to dispose of Sea Latitude, one of its very large crude carriers (VLCCs).
As informed, the company has entered into a memorandum of agreement with Singapore’s Da Shun Shipping to sell the ship for USD 22.5 million.
Built in South Korea in 2001, the LNG carrier is to be delivered at anchorage at Port of Kuala Sungai Linggi, Malaysia at the seller’s option. The delivery of the vessel is expected to take place on or before August 7, 2018.
Explaining the reasons for the disposal, Agritrade Resources said the vessel is more than 16 years old — considered to be old and less attractive for charterers — and has high maintenance costs.
Taking into account the prevailing market conditions, the company said that “the proceeds from the disposal will further enhance and strengthen the group’s financial position and liquidity.”
Impacted by oversupply, the crude oil tanker fleet has seen a very serious deterioration of freight rates in the first half of 2018 when compared to 2017. Earnings for VLCCs in the first half of the year were as low at USD 6,001 per day on average, according to BIMCO.