Cargo shipper Jinhui Shipping and Transportation is to sell its last handysize vessel to Delica Shipping for $15 million.
The sale is part of Jinhui’s ongoing strategy to downsize its dry bulk shipping fleet and will leave Jinhui Shipping with two post-panamax and 25 grab-fitted supramax vessels.
The vessel, Jin Yu, is 38,462 deadweight-tonne handysize and the firm will use 75 percent of the net sale proceeds for the repayment of the vessel mortgage loan and the remaining portion for general working capital.
“Despite the market improved later in the year, we continue to see uncertainty and market volatility remaining as an operational risk to the group. In order to further reduce operational risk and liquidity risk, we believe it is prudent for the group to readjust the fleet size and lower the overall indebtedness and it is vital to remain financially nimble in today’s tough and ever-changing market environment,” a spokesperson for Jinhui Holdings said.
Photo: Jinhui is selling its last handysize vessel to Delica. Credit: Jinhui