Egged on by an unforeseen rise in China’s imports, freight rates have risen substantially over the last year. The buoyant market brought forth varied options to Sanmar Shipping Limited. Riding on such a strong market sentiment, Sanmar elected to reorganise its fleet portfolio. In short, Sanmar decided to capture the moment.
The S&P (Sale and Purchase) market, being on equally sound fundamentals shepherded this restructuring exercise. In a phased manner, the bulk carriers were placed in the Sale market to be eventually replaced with Product tankers. In line with its intention to consolidate and modernise the fleet, Sanmar aggressively approached and purchased a 1992 built Double Hull Clean Petroleum Products (CPP) tanker, “Garnet Lady” at a very reasonable price.
In the current environment stringent regime, this purchase of Sanmar reflects its commitment to a safer and pollution-free world. Prices of ships have risen dramatically since then, therefore the timely acquisition is seen by the industry as a very strong move. The vessel was delivered to Sanmar at Qingdao, P.R.China on January 7, 2004. The financial closing was held at Athens, Greece. She was renamed “Sanmar Serenade” and now flies the Indian flag.
With this purchase, the number of MR (Medium Range – region 50,000 DWT) tankers operated by Sanmar goes up to 4. The vessel was built in Japan, is 45,696 MT Deadweight and 49,986 cubic capacity. The vessel is gainfully employed and is currently operating in the Arabian Gulf on charter with United States Navy. As an Egyptian teacher once said, “Most data and all experience are history, but it is geography that provides the canvas for a painting.” Sanmar believes in breaching geographical boundaries in its quest of staying with the oceans and beyond.
C V Subba Rao, Vice President - Technical, Sanmar Shipping
P Viswanathan, Chief Executive, Sanmar Shipping Limited and C V Subba Rao at Athens, on their S&P mission
Sanmar Serenade neé Garnet Lady, Sanmar Shipping’s latest acquisition.
The bull run in freight market trends as depicted by R S Platou Economic Research a.s