Formosa Plastics pushes ahead with fleet clearout

Formosa Plastics pushes ahead with fleet clearout

Taiwanese conglomerate Formosa Plastics is having a fleet clearout with a host of different ship types put in the shop window in recent weeks.

The company, the world’s sixth-largest chemical producer by chemical sales, has let go of two of its oldest long range tankers. The two 70,400-dwt sized Formosa Falcon & FPMC P Alpine, fetched $7m each, a very low price for 13-year-old ships with these specifications. Splash understand that Formosa Plastics first circulated the ships for $11m each. The original asking price is much closer to the fair market values from MSI. Taiwan’s Winson is linked to the ships in numerous broking reports.

Another LR1, the nine-year-old FPMC P Glory, has been put up for sale, according to broking sources as have a pair of MRs, the FPMC 16 and FPMC 17.

The fleet clearout is not limited to tankers. Three feeder boxships – FPMC Container 10, Formosa Container 5 and FPMC Container 9 – have been sold en bloc to undisclosed buyers for $19.5m.

Hans Thaulow

Hans Henrik Thaulow is an Oslo-based journalist who has been covering the shipping industry for the last 15 years. As well as some work for the Informa Group, Hans was the China correspondent for TradeWinds. He also contributes to Maritime CEO magazine. Hans’ shipping background extends to working as a shipbroker trainee with Simpson, Spence & Young in Hong Kong.

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