Shipping & Shipbuilding News -  04 December 2008- The Brightest Maritime Daily

Bulk carrier orders cancelled at Chinese shipyard
Fears of order cancellations now a real consequence of financial crisis...

Cosco Singapore, which owns the Da Lian Shipyard announced yesterday that an un-named buyer had restructured previously agreed orders and cancelled two of a five ship order.

The 57,000 ton vessels, all bulk carriers, were ordered in July 2007. Three of them will have 80% of their price paid by the end of this month, earlier than the previously agreed, with the remaining 20 per cent as agreed.

Two ships have been cancelled but Dalian will receive full compensation for any costs so far incurred.

Further to this, and reflecting market sentiment about the future of the bulk market, the third vessel will not be completed by December 2009, but instead in June 2010.

The news has had an adverse effect on Cosco Singapore's shares. The share price fell 7.1 percent to 79 Singapore cents today.

The financial crisis that has swept the world and depressed trade has hit the bulk carrier industry hard. Cosco's shipyards are focussed heavily on bulk carrier orders and Bloomberg reports a spokesman from Deutsche Bank as saying this is 'but the start of a negative news flow.'


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