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.