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Four new ultramax bulkers for Norden

(Posted on 01/07/20)

Following the sale of 10 ships since 2018, Dampskibsselskabet Norden has entered into a newbuilding contract with Nantong Cosco Khi Ship Engineering Co. (“NACKS”) for 4 x 61,000 dwt dry cargo Ultramax ships, expected to deliver during 2022.

In an interview with IBJ earlier this year, Norden Chief Executive Officer Jan Rindbo revealed the company’s business philosophy of being nimble and flexible. He noted that the newbuilding contract is in line with the company’s strategy of agile asset trading and active management of NORDEN’s cyclical market exposure.

“Having sold 10 dry cargo vessels since 2018, we believe asset prices have now declined sufficiently to present a good trading opportunity to buy,” said Jan Rindbo.

The newbuildings will join the core fleet of Norden owned and long-term leased tanker and dry cargo vessels managed by the Asset Management business unit.

“With a demand outlook gradually returning to normal and a low orderbook, we believe it’s a good time to buy assets and secure competitively priced tonnage” says Henrik Lykkegaard Madsen, Head of Asset Management. “Furthermore, the contracted vessels have been secured with the aim of trading the portfolio of bulk carriers within the prevailing market volatility to optimise our returns".

Norden, which operates in dry cargo and product tankers worldwide, celebrates its 150th anniversary next year.