Thailand’s Precious Shipping reportedly plans to sell its nine supramax bulk carriers and replace them with secondhand ultramaxes, having already sold 12 of its handysizes so far this year.
“In the next two to five years, whenever the shipping cycle goes up and returns are good, we will sell the supramaxes and replace them with more ultramaxes,” Precious’ managing director Khalid M Hashim (pictured) told the Marine Money Asia conference in Singapore, according to Platts reports.
“Ultramaxes can carry around 15-20% more volume than supramaxes while they are also fuel efficient, consuming up to 20% less bunker oil,” the MD said, quoted by the news service.
The company does not have any intention of entering the capesize market, Hashim told delegates.
At least 11 of the handymaxes Precious has sold this year have been bound for demolition, and Hashim said in the coming months the company would scrap one or two more. A couple of 1997-built handys still remain in its fleet.
The Bangkok-listed company has said its strategy is “to rejuvenate its fleet by selling its older vessels and acquiring younger and bigger vessels”.
The average age of Precious’ fleet has come down from 21 years in 2008 to 7.5 years currently, Hashim told the Marine Money conference.
The company aims to increase the proportion of vessels that are chartered out on long-term contracts from the current 20% to around 70%, the MD said.