Marine

3.4, sale of bulk carrier

South Africa: the sale of bulk carrier Lady East in Richards Bay for an unexpectedly high figure, illustrated the unprecedented demand for tonnage in the global shipping market. The vessel was sold for $6.575mn. At $6mn, reportedly, there were still three potential buyers in the bidding. The scrap dealers had already dropped out at around $2mn. The reserve price was only $2mn and the vessel was widely expected to be destined for the breakers’ yards of India. The auctioneers described the vessel as not being in a good condition. The South African Marine Safety Authority would require repairs before it declared the vessel safe, even for towing. The new owner, Marmori Shipping of Syria, was expected to spend another $6mn to get the vessel back into service.