Norden moves forward with fleet renewal

Acting on dry cargo asset opportunities, Danish shipping company Dampskibsselskabet Norden A/S has announced new vessel deals.

As informed, the company has added two bulkers to the existing newbuilding contract with shipbuilder Nantong Cosco KHI Ship Engineering Co. (NACKS), a joint venture between China COSCO shipping Group and Kawasaki Heavy Industries (KHI).

In June, Norden signed a contract with NACKS for four 61,000 dwt dry cargo Ultramax ships, scheduled for delivery in 2022.

The order now encompasses a total of six vessels.

Of this order, Norden has already sold two vessels on sale and leaseback terms, subject to final completion of terms, thereby freeing up liquidity and acting on attractive charter rates while securing good optionality from period and purchase options. 

Furthermore, the company has bought a secondhand 2014-built Supramax bulk carrier also built at NACKS scheduled to join the Norden fleet in September.

Norden CEO Jan Rindbo noted that the trading activities are in line with the company’s strategy of asset trading and active management of its cyclical market exposure, where Norden sees attractive dry cargo asset opportunities after a long period with declining values. 

“These deals represent great tactical asset opportunities for Norden, which we are here acting on,” Rindbo said.

“Tonnage prices are about 10-20% lower today than 2018/2019 levels, where Norden sold 10 vessels.” 

The vessels will join the core fleet of Norden owned and long-term chartered tanker and dry cargo vessels under the company’s Asset Management business unit.