Norden reshuffles fleet, bolsters focus on dry bulk

Danish shipping company Norden has seized on the market opportunities to increase its presence in the dry bulk cargo market while shifting away from its exposure in the tanker segment.

Image credit: Norden

In line with the startegy, the company’s Asset Management division has sold two Handysize tankers, Nord Bell and Nord Hummock, and bought three kamsarmaxes.

The newly purchased fleet additions are expected for delivery in the second half of the year.

Norden added that it has also entered into agreement to lease a further seven dry cargo vessels with period and purchase options.

In total since the beginning of 2020, the company’s Asset Management division has entered into agreements for 33 owned and leased dry cargo vessels.

“Our switch of exposure from tankers to dry cargo has been well-timed,” said CEO Jan Rindbo.

“The tanker market is still challenged by low oil demand due to the pandemic; while the dry cargo market is extremely strong and we see this trend continuing during the year.” 

At the same time, another dry cargo vessel, Nord Stellar, has been sold, after being purchased by Norden in December.

The vessel has only just been delivered to the company and will undertake one voyage under the Norden flag before being delivered to new owners.  

“The sale of Nord Stellar is not an indication of our loss of faith in the dry cargo market, but rather an example of a fantastic asset trading opportunity,” explains Henrik Lykkegaard Madsen, Head of Asset Management.

“The strong dry cargo market and rising asset prices enabled us to generate a great return on this ship during our very short period of ownership. In Asset Management we continually look for such opportunities to capitalise on market developments.”