Eim­skip Sells 2 Boxships

Maritime Activity Reports, Inc.

December 22, 2019

Image: Eimskip

Image: Eimskip

The oldest shipping company in Iceland Eimskip has made an agreement to sell two container vessels for USD 3.9 million (EUR 3.5 million).

The Icelandic Steamship Company (Eimskipafélag Íslands hf.) said in a press note that the 1457 TEUS container vessels Godafoss and Laxfoss are 24 years old and have been operated by Eimskip for nearly 20 years.

Eimskip has parallel to the sale made an agreement with the buyer to charter the vessels back, it said.

The sale of these vessels is a part of Eimskip’s vessel fleet renewal, but the company is building two 2150 TEUS container vessels in China.

Godafoss and Laxfoss will continue to service the Red line, to and from Scandinavia, until the new-buildings will be delivered and the cooperation with the Greenlandic carrier Royal Arctic Line commences which is expected in Q2 2020. The sale will not affect service to customers or the Company‘s sailing system.

The vessels will be delivered to the buyer at the beginning of next year. As the book value of the vessels exceeds the sales price Eimskip will realize EUR 1.2 million impairment loss through amortization in the fourth quarter of 2019.

The sale is subject to customary reservations in vessels sale and purchase.

As previously announced, Eimskip made an agreement to sell three out of six reefer vessels in Norway and subsequently charter one back. Overall, Eimskip has therefore sold the Company’s older vessels which substantially decreases the average age of own vessel fleet.

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