In response to the current freight rates in the dry bulk shipping industry, Japanese shipping company Nippon Yusen Kaisha (NYK Line) is planning to take a number of its Capesize bulkers out of service for a period of months, or even years, until demand is restored, Platts cites the company’s Manager of Capesize Chartering Izuru Ehara.
Out of the two possible options – to charter or to lay-up – Ehara said that the second seems to be more economically favorable.
Only a month ago, NYK Line decided to put three of its Japanese-made bulkers out of service, namely the 179,420 dwt Frontier Harvest, the 174,707 dwt Frontier Wave and the 174,845 dwt Frontier Discovery, as the company does not “see sense in fixing the current spot business,” Ehara said to Platts.
As of the end of January, some ten Capsizes were expected to be put in cold storage, including the three from NYK. However, many owners are reluctant to start this practice as they believe the cold lay-up would affect the vessel’s performance in the long run.
(Source: World Maritime News)