Scrapped - MOL Cuts 20 Capesize Bulkers

TOKYO – Mitsui O.S.K. Lines, Ltd. announced their plans today for the scrapping or cold lay-up of 10 to 20 Capesize bulkers in consideration of this fiscal year’s worsening market trends. The company scrapped four vessels and temporarily laid up 10 others last year.

Until now, MOL scrapped Capesize ships that were past 23 years or older, but will now scrap ships that are 15 or older. Current plans include scrapping five vessels by the end of March 2013 as well as the potential disposal of others.

In addition, based on the current Capesize market conditions, MOL believes that the cold lay-up of about 10 ships for six months to one 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 their fleet and increase vessel quality by accelerating scrapping, aiming to provide the highest quality transport services. With iron and steel raw materials positioned for mid- and long-term growth, MOL seeks to build an unchallenged position as one of the world’s largest operators of Capesize bulkers servicing that trade.

Meanwhile, MOL stresses that the vessels planned for disposal will be scrapped at yards that conform to the “Guidelines to sell vessels for scrapping from an environmental viewpoint” stipulated by MOL.

MOL has monitored scrapping yards to ensure that their environmental practices are in conformity to ISO14001 (or equivalent environmental management standards) and carefully evaluates their scrapping methods based on its own guidelines for environmental protection and occupational safety.