World News
Mercator Confirms Singapore Dry Bulk Exit
Mercator Limited (Mercator) Monday confirmed it is to exit its Singapore-based bulk shipping subsidiary, Mercator Lines (Singapore) Limited (MLS).
"The Bulk Carriers business has been the worst affected by the downturn in the shipping cycle, with the Baltic Dry Freight having collapsed from a level of 11,793 in 2008 to 373 on January 15, 2016 and not showing signs of early revival in future," the company said.
"All other operating businesses of Mercator India, as well as its subsidiaries, i.e. Dredging, Tankers, Coal and Logistics and Oil & Gas are performing satisfactorily."
The exit marks an end to three loss making years for MLS, culminating in a loss $125 million for FY2015, and coincides with an unprecedented downturn for the sector.
On Monday Mercator also said a Court Order appointing Yit Chee Wah as judicial manager had been issued on January 18, who "intends to evaluate all of the available options in order to preserve the value of the company's assets for the benefit of its creditors."
Creditor HSH Nordbank had previously filed a motion to appoint a judicial manager in September.
Last month MLS was forced to sell three vessels to pay off debts, with rumours of the Singapore exit surfacing shortly after.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
Popular Now More
-
Apr 24Non-compete clauses have not always been used in a fair and reasonable way in the bunker industry, Maritime Recruitment Company Ltd's Vernon Jayanathan tells Ship & Bunker. -
Apr 25Government investigating after test results altered 'to make the fuel consumption data look better'. -
Apr 26The company is looking for candidates with bunker trading professional certifications and at least six years of experience in a similar role.