Sweden based tanker shipping company Concordia Maritime has sold its holding of 1.5 million shares in the US shipping company General Maritime.
“The decision to sell the holding in General Maritime was made in view of the weak prospects for tanker shipping. There is a growing structural problem on the supply side due to large-scale deliveries of new tonnage and a too large order book. Our assessment is that tanker shipping companies, which are active solely or partly in the so-called open market, have a difficult time ahead of them generally speaking. We had previously written down the value of the shares so that the loss now realised does not affect the company’s position and we get cash infusion of more than USD 11 million. As regards the trend of the market, we are not at all affected to the same extent since our whole fleet is signed to long-term charters”, says Hans Norén, President of Concordia Maritime.