Swee Joo to dispose of loss-making chemical tankers

Shipping firm Swee Joo will sell its entire fleet of four chemical tankers as part of an internal restructuring to improve its financial standing, reports said. The four tankers, owned by its subsidiary Asia Bulkers, were built at approximately $56m several years ago during the global shipping boom. Sim Mong Hong, group managing director of Malaysia-based Swee Joo, said the liquid bulk division under Asia Bulkers contributed to the group's loss of RM129.9m ($42.8m) for the financial year ended 31 September 2010.


“The liquid bulk division faced severe cash-flow strain due to low freight rates and ample supply of chemical tankers in the market due to new buildings (tankers) being delivered, and eventually unable to meet its (financial) commitments which affected the cash-flow situation within the group,” Sim said in a statement.
(Source:http://www.seatrade-asia.com)