Scrapping and cold lay-up

The company already scrapped four vessels and temporarily laid up ten others last year. So far, MOL has scrapped ships that are at least older than 23 years. Now the units are just 15 years or older. Five vessels are said to be discarded by the end of March 2013. In addition, based on the current market conditions, MOL believes that the cold lay-up of approximately ten ships for six months to a year could help to restore an appropriate unit’s supply-demand balance in the future. The company has already started selecting vessels and locations for cold lay-ups. MOL is weighing measures to rejuvenate the fleet and to increase the vessel quality by accelerating scrapping.