The disposal of the 2012-built, 38,462-dwt handysize Jin Yu will leave Jinhui Shipping with two post-panamaxes and 25 grabs fitted supramaxes including four which will be disposed this month.
Jinhui Holdings, which owns 54.77% stake in Jinhui Shipping, said it will use approximately 75% of the net sale proceeds received for the repayment of vessel mortgage loan and the remaining portion for general working capital.
The vessel Jin Yu will be handed over to Delica Shipping between 15 May to 15 June. Delica Shipping is established and owned by Japan’s Inui Global Logistics Co, with principal activities in shipping, warehousing and realty.
Jinhui Holdings noted that freight rates in 2016 had been extremely volatile and at times below Jinhui Shipping’s operating costs.
“Despite the market improved later in the year, we continue to see uncertainty and market volatility remaining as an operational risk to the group,” Jinhui Holdings said.
“In order to further reduce operational risk and liquidity risj, we believe it is prudent for the group to readjust the fleet size and lower the overall indebtedness and it is vital to remain financially nimble in today’s tough and ever-changing market environment,” it commented.
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