Scrappy ship fetches unexpectedly high price

AN AGING 1978-built bulk
carrier Lady East, arrested in
Richards Bay since mid 2007
with a number of serious
deficiencies, has been sold at
auction for more than three
times the reserve price, such is
the demand for bulkers.
Auctioneer Captain Roy
Martin of Admiralty Shipsales
said the ship had been
knocked down to a Syrian
company for the unexpectedly
high figure of US$ 6.575
million, which was well above
the reserve price set for the
vessel of US$ 2 million. Of
the seven parties bidding for
the ship, three went above
US$ 5 million before the final
offer was accepted.
The ship was arrested in
May 2007 after the charterer,
Island View Shipping, brought
action against the owners
because of the vessel’s
condition. A subsequent
inspection by Samsa (South African Maritime Safety
Authority) confirmed
numerous deficiencies leading
to the ship’s continued
detention and eventual
judicial sale.
For the East European
crew on board it has been a
trying time, especially since
their wages were stopped last
November. As a result of the
sale they will now be paid in
full and have chosen to return
home.
The ship’s new owner,
Marmori Shipping, intends
restoring the vessel and
returning her to service.
Marmori acquired another
detained ship in Durban in
2005, the Atlantic Mercado,
which the owner said had
been restored and was still in
service.