Daiichi Trims Fleet

 

The debt-ridden shipowner under civil rehabilitation proceedings, also plans to improve profitability by updating charterage to shipowners. Through these measures, the Japanese bulk shipper aims to reshape its business in a bid for stable profits.

 

It  has already sold off one of its prized shipping assets to a rival Japanese owner. The 2010-built Capesize bulker and its remaining 15-year charter to compatriot NS United Kaiun Kaisha and its Panamanian subsidiary company for USD 63.38 million.

 

The company will reduce the number of long-distance cargo vessels from roughly 120 to around 50. By Tuesday, the shipping operator had agreed the terms of the change with about 40 domestic and overseas shipowners. 

 

The company intends to retain approximately 40 vessels from the roughly 100 ships it has chartered from shipowners. The ships that the company owns will make up the 50 or so vessels that will remain in operation for its long-distance international transportation.  

 

Mitsui O.S.K. Lines (MOL), owner of 16.64% of shares in Daiichi, earlier this week said it expects to record a JPY 26.2 billion (USD 220m) loss in the first half of FY2015 after Daiichi applied for the start of civil rehabilitation proceedings on September 29.