World News
Singapore's Mercator Forced to Sell Three Bulkers to Service Debt
Singapore-based bulk shipping company Mercator Lines (Singapore) Limited (Mercator) has announced that it has been forced to sell three mortgaged bulkers, Kesari Prem, Gauri Prem, and Sri Prem Aparna, in order to settle the company's outstanding debt.
Mercator says it received a notice of enforcement from an undisclosed mortgagee requesting that the second-hand vessels be sold.
Following the notice, Mercator is reported to have entered into three separate agreements to sell the vessels to related companies of their lender at "an arms length basis."
The bulkers are said to have been sold at market value for a total profit of $14.8 million, which was then used to pay Mercator's lenders.
Mercator says the three vessels will be delivered to their buyers throughout December 2015 and January 2016.
In October, it was reported that Sokje Lee, executive director for JPMorgan Chase & Co. (J.P. Morgan) in Korea, said that dry bulk sector players will need to cut costs if they want to make money, as rates could stay weak for years.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.00 | 0.50 | 775.00 | 3.50 |
| Rotterdam | 603.50 | 1.50 | 759.50 | 11.50 |
| Houston | 626.50 | 2.50 | 794.00 | 2.00 |
| Fujairah | 649.00 | 0.50 | 904.50 | 6.50 |
| Global 20 Ports Average | 664.00 | 2.00 | 855.00 | 0.00 |
| Global 4 Ports Average | 632.00 | 1.00 | 808.00 | 4.00 |
| Global Average Bunker Price | 716.50 | 1.00 | 901.00 | 12.50 |
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