Samudera Shipping plans sell-off of six elderly boxships and tankers

The Indonesian shipowner announced it is seeking approval from shareholders to authorise the disposal of the four feeder boxships, all built in 2005 with capacity from 241-287 teu and two 17,726-17,766-dwt oil tankers built in 2000 and 2001.

Singapore-listed Samudera Shipping said the ships are all Indonesia flagged vessels that service the domestic route within Indonesia.

“Under the current Indonesian shipping law, the group is restricted from owning and registering new Indonesia flagged vessels. Arising therefrom, the group will not be able to acquire new Indonesia flagged vessel to rejuvenate aging and/or non-competitive Indonesia flagged vessels,” Samudera Shipping said.

“The group has adopted the strategic approach of gradually selling or scapping Indonesia flagged vessel. Once all the Indonesia flagged vessels are sold/scarpped, the group will cease to provide shipping services for domestic route within Indonesia.

“However, the group will continue to provide shipping services for international route from and to Indonesia as well as potentially investing in a minority stake in Indonesian company which provides shipping services for domestic route within Indonesia,” Samudera Shipping explained.

The disposal price of each of the six vessels will not be lower than 90% of their respective values as determined by an independent valuer.

The four feeder boxships – Sinar Padang, Sinar Panjang, Sinar Jepara and Sinar Ambon – were making losses in the year ended 31 December 2016, while the pair of oil tankers – Sinar Emas and Sinar Jogya – were profitable in 2016 but they are more than 15 years old.

Over the past 12 months up until February this year, Samudera Shipping has disposed of six elderly feeder boxships.