Bore Ltd has announced the sale of its general cargo contract of affreightment business by the end of the year.
As part of its strategy to renew the company through “divestment”, Bore will sell off its fleet of six CoA vessels so that it can focus on roll on/roll off (RoRo) tonnage providing.
In a statement, the company said the decision was down to “several years of overcapacity in the market and unsustainably poor profitability” of the CoA sector.
Bore's M/V Fingard and M/V Swegard are currently in the sales process with delivery scheduled for October 2014. Compass vessels M/V Nordgard, M/V Sydgard, M/V Westgard, and M/V ostgard are being sold to Royal Wagenborg with delivery expected in December 2014.
Bore CEO, Håkan Modig says: ”We have made progress in turning the negative result trend of Bore, but to achieve further improvement we will focus on becoming a strong shipping partner to our current and future customers in the RoRo segment. Our efforts will be on building a strong balance sheet to provide us with a platform to meet current and future shipping regulations.
"Innovative shipping and reduction of our environmental footprint will be important to strengthen our position as the leading shipping partner within the RoRo segment. It is unfortunate that this restructuring program also will have an impact on our employees.”