Rickmers Clarifies Reported Scrapping Record

Rickmers Trust Management has issued a statement on behalf of Rickmers Maritime saying that media reports of it scrapping a seven-year-old container ship, India Rickmers, need clarification.

“As previously disclosed in its announcement dated September 7, 2016, the Trustee-Manager is in negotiations with one of the Trust’s senior lenders in relation to agreeing terms of a debt settlement agreement. In connection with the potential debt settlement agreement, the Trust is considering, amongst other things, the sale of the vessel. The negotiations in relation to the potential debt settlement agreement are ongoing and no sale of the vessel has been concluded.”

If the vessel is sold for scrap, it would be the youngest ever container ship sent for demolition. The India Rickmers is a seven year old Panamax, 4,250 TEU ship built in China in 2009.

VesselsValue values the vessel at $5.87 million, just above scrap. In 2016, the vessel fell 62 percent in value. This year the average change in value in the container ship sector is -26 percent.