UDS put up for auction the entire naval fleet

PJSC “Ukrainian Danube Shipping Company” has begun the sale of the company’s sea fleet.

The shipping company must get rid of unprofitable non-core assets and direct resources to the modernization of the river fleet, the UDS reported.

As the company emphasized, it is in the segment of river cargo transportation that the shipping company has development prospects.

All six vessels UDS put up for sale as a single lot. Shipowners are more interested in the repaired “Vylkovo” and “Izmail”, with documents and ready for work. However, it is important that the “Tatarbunary”, “Viana do Castelo”, “Kilia” and “Reni”, which have been in the sludge for many years, also find a buyer.

Last year, the UDS began the restoration of the UDS sea fleet. During the blockade of the ports of Odesa, the government set the task of ensuring the export of agricultural products from the Danube ports. At last year’s freight rates, the renewal of the fleet was a profitable investment with a short payback period.

But after the blockade was lifted from the ports of Odesa, freight rates fell several times. The Danube ports were emptied, and the further trend is disappointing.

Some private companies also operate at low rates. Private companies optimize taxes, operate hundreds of fleet units of various tonnages, work in different segments, in different markets with guaranteed return loading of vessels.

UDS is a state-owned company that pays all taxes. In such unequal conditions, having a working fleet of two small sea vessels (the other four are in non-operational condition), it is almost impossible to compete.

The company considered proposals to transfer the vessels to time charter. However, the income from the charter will not cover the future costs of maintaining and repairing the vessels. This is a clearly unprofitable project for the state.

Keeping the ships idle forever is also not an option, as maintaining the fleet is a significant monthly expense. UDS ships are over 30 years old, so after some time they will have to spend money again to extend the validity of the documents. The decision to sell the fleet was supported by the shareholder, UDS noted. Earlier, USM reported that government officials inspected the modernized UDS ship “Captain Antypov.”