MOL to Scrap, Lay-up, Bulkers

MOL slates total of 10-20 'Capesize' bulk carriers for scrapping and cold lay-up

Mitsui O.S.K. Lines, Ltd. (MOL; President: Koichi Muto) today announced plans for scrapping or cold lay-up of 10 to 20 Capesize bulkers in consideration of this fiscal year's worsening market trends. The company scrapped four vessels and temporarily laid up 10 others last year.

Up to now, the company has scrapped Capesize ships that were past 23 years or older, but will now scrap ships that are 15 or older. MOL has plans to scrap five vessels by the end of March 2013 and is considering the disposal of others.

In addition, based on the current Capesize market conditions, MOL believes that the cold lay-up of about 10 ships for six months to one year will help restore an appropriate vessel supply-demand balance in the future. The company has begun selecting vessels and locations for cold lay-ups.

MOL is weighing measures to rejuvenate the fleet and increase vessel quality by accelerating scrapping, aiming to provide the highest quality transport services. It will also meet transport demand for iron and steel raw materials, which are positioned for mid- and long-term growth, and build an unchallenged position as one of the world's largest operators of Capesize bulkers.

The vessels will be scrapped at yards that conform to the "Guidelines to sell vessels for scrapping [recycling] from an environmental viewpoint" stipulated by MOL.