December 3, 2008
Cosco Dalian reports bulker newbuild cancellations
China's Cosco (Dalian) Shipyard Co., Ltd. has reached an agreement that will see cancellation of the ship building contracts for two of five bulk carriers of 57,000 DWT each, orders for which were announced in July 2007.
The cancellations are conditional upon the payment by the shipowner of 80% of the total contract price of the remaining three vessels by December 2008, which is earlier than originally agreed. The last installment of 20% of the contract price will be paid in accordance with the original schedule.
Additionally, the shipowner has agreed to compensate Cosco Dalian for all expenses incurred in respect of the two cancelled orders for which construction has not commenced.
The parties have also agreed that the date of delivery of the third of the three remaining vessels will be pushed back to June 30, 2010 instead of December 2009.