Mercator Lines Existing Dry Bulk, Divesting Fleet

Singapore-listed Mercator Lines has received approval from its Board of Directors to exit dry bulk businesses as part of its restructuring endeavors.

As a result the company plans to divest its dry bulk fleet and it has already appointed an agent to find a prospective buyer for its ships. Mercator has 11 bulkers in its fleet, ranging between 70,000 and 92,500 dwt built from 2001 to 2010.

MLS has a debt of Rs 1000 Crore and has reported a loss of USD 125 million for 2015, resuming a losing streak from the last three years.

The losses have been reported as dry bulk carriers experience the worst downturn in the shipping cycle and amid a continuing decline of the Baltic Dry Freight index that has plunged below 400 points, now standing at 373 points.

Mercator said that its other business sectors including tankers, coal and logistics, oil and gas and dredging are performing satisfactorily.

World Maritime News Staff