Thursday, December 4, 2008

Daily news - 4 Dec

Cosco client cancels orders for 2 carriers
COSCO Corp (Singapore) became the latest shipyard to announce order cancellations with the cancelling of two 57,000 deadweight tonne (dwt) handymax size dry bulk carriers from a batch of contracts for a total of eight bulkers worth US$313 million announced last July. The two vessels were part of an order of five from one shipowner. Cosco declined to reveal the worth of the ships but market prices of similar ships contracted to be built at the time were around US$30 million to US$50 million each. Cosco said that the cancellations were part of a variation agreement where it agreed to cancel the orders for the two vessel on the condition that the owner pays 80 per cent of the total contract price of the remaining three vessels by December, a significantly advanced payment schedule. The last 20 per cent instalment will be paid in accordance with the original schedule. Cosco shares closed nine cents higher at 85 cents yesterday.

Source: Kim Eng

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