October 31 2024

The company will abandon the time charter agreement for four icebreaking gas carriers

Japanese liner shipping company Mitsui O.S.K. Lines (MOL) announced the curtailment of its business related to the Russian Federation. This follows from the company’s press release.

The statement said that the decision was made due to tightening sanctions from the United States and Europe. As a result, the company is forced to abandon time charter agreements for three icebreaking LNG tankers and one gas condensate tanker that were part of the company’s business related to Russia. The total investment under this contract is about 105 billion yen (about $690 million). Negotiations are currently underway with the relevant parties.

“If the negotiations run into difficulties, we will not be able to fulfil these time charter agreements. In the event of termination of these agreements, we will try to sell these vessels to third parties. However, due to the complexity of their conversion for use in other types of business, since these are icebreaking vessels, we risk not getting the price we expect,” MOL noted, adding that they do not rule out that the company could suffer losses from this step commensurate with the specified investment amount.

International liner shipping company Mitsui O.S.K. Lines (MOL, Tokyo) is a multimodal transport group uniting 441 companies that operates one of the largest and most diversified networks of weekly liner and logistics services worldwide, including trans-Pacific, trans-Atlantic, North American, South American and Asian-European. The group’s operating fleet includes about 700 vessels of various types with a total deadweight of more than 50 million tons.

Source: https://portnews.ru/news/369771/