Danish shipping company Norden says it has sold a 10 year old capesize bulk carrier for a loss, allowing the company to focus more on smaller vessel types that are at the core of its business.
Norden announced the sale Monday, saying it has agreed to sell the the 176,000 dwt Nord Power, which will entail an accounting loss of $12 million to be included in its annual results for 2015. The company said that while the does come at a loss, it expects to reinvest the proceeds into additional tonnage in supramax and panamax vessel types, where Norden is one of the world’s largest operators.
The sale of the Nord Power is in-line with a strategy announced Norden in September to exit the larger capesize and post-panamax vessel segments so it can focus more on small and mid-sized vessels. As of September 30th, the company’s fleet comprised of 2017 active vessels, comprised mainly of Panamax, Supramax and Handymax vessels, but also three capesize and eight post-panamax vessels. Norden also has 25 dry cargo vessels on order.
Norden’s plan comes as the dry bulk shipping market suffers through its worst downturn in modern times. Last week, the Baltic Dry Index ended the year at 478 points, just barely above its all-time low of 471 set earlier in December and down more than 95% from its peak in 2008.