Danish transport firm Norden says it has offered a ten yr previous capesize bulk service for a loss, permitting the corporate to focus extra on smaller vessel varieties which are on the core of its enterprise. 

Norden introduced the sale Monday, saying it has agreed to promote the the 176,000 dwt Nord Power, which can entail an accounting lack of $12 million to be included in its annual outcomes for 2015. The firm stated that whereas the does come at a loss, it expects to reinvest the proceeds into further tonnage in supramax and panamax vessel varieties, the place Norden is among the world’s largest operators.

The sale of the Nord Power is in-line with a technique introduced Norden in September to exit the bigger capesize and post-panamax vessel segments so it could possibly focus extra on small and mid-sized vessels. As of September thirtieth, the corporate’s fleet comprised of 2017 energetic vessels, comprised primarily of Panamax, Supramax and Handymax vessels, but additionally three capesize and eight post-panamax vessels. Norden additionally has 25 dry cargo vessels on order.

Norden’s plan comes because the dry bulk transport market suffers by way of its worst downturn in trendy instances. Last week, the Baltic Dry Index ended the yr at 478 factors, simply barely above its all-time low of 471 set earlier in December and down greater than 95% from its peak in 2008. 

More Reading: Survival of Fittest for Dry Bulk Shipping Companies in 2016