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Ispat sells one dry bulk carrier

Our Bureau

CALCUTTA, Dec. 5

ISPAT Industries is understood to have sold one of the five Panamax dry bulk carriers it put on the market for sale in October, according to market reports.

Reports have it that Ispat Gaurav (1994 built, 71,535 dwt) has been sold for around $15 million.

Ispat's four other ships, believed to be still on the market for sale, include Ispat Umang ( 1990, 69,306 dwt), Ispat Tarang (1989, 70,321 dwt), Ispat Kirti (1986, 68,255 dwt) and Geeta (1993, 70,135 dwt).

Meanwhile, the market for old ships is believed to be flooded with offers for sale of bulk carriers. The uncertainty of the medium and long-term prospects of the dry bulk freight market is reportedly the reason.

The worst hit, according to market sources, is the handymax sector which has been on the slide, except in respect of a few rates, because of continuing oversupply. The Panamax rates, falling since October, have stabilised now while the recent softening o f the capesize rates is being viewed more as a readjustment of the strong gains witnessed in October.

The tanker rates being firm in all sectors, the tanker sellers are in no mood to strike deals right now. However, the recent sale of a few tankers is being attributed by experts to the unusual spurt in the prices of second-hand wet tonnage. Therefore, se veral owners sold their tonnage.