JUNE 13, 2012 — Mitsui O.S.K. Lines, Ltd. (MOL) has announced plans to send 10 to 20 Capesize bulkers for scrapping or into cold lay-up. The move is in response to this fiscal year's worsening market trends. Last year, the company scrapped four vessels and temporarily laid up 10 others.
MOL is one of the world's largest operators of Capesize bulkers. Until now, it has scrapped Capesize ships that were more than at least 23 years old. Now it will scrap ships that are 15 or older. MOL has plans to scrap five vessels by the end of March 2013 and is considering the disposal of others.
In addition, based on the current Capesize market conditions, MOL believes that the cold lay-up of approximately 10 ships for six months to a year will help restore an appropriate vessel supply-demand balance in the future. The company has begun selecting vessels and locations for cold lay-ups.
The scrapped vessels will be sent to yards that conform to the "Guidelines to sell vessels for scrapping from an environmental viewpoint" stipulated by MOL.
MOL has monitored scrapping yards to ensure that their environmental practices are in conformity to ISO14001 (or equivalent environmental management standards) and carefully evaluates their scrapping methods based on its own guidelines for environmental protection and occupational safety.