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Credit crunch bites into Cosco bulker orders

Credit crunch bites into Cosco bulker orders

Singapore: Cosco Corporation (Singapore) has announced that its subsidiary, Cosco (Dalian) Shipyard has agreed to cancel ship building contracts for two 57,000dwt bulk carrier vessels and postpone the construction of three other similarly sized vessels as the result "of the prevailing unfavourable market conditions".

According to the new agreements, the cancellations are conditional upon the unidentified shipowner supplying 80% of the total contract price for the remaining three vessels by December 2008, which is earlier than originally agreed under the contracts signed in July 2007.

The last instalment - amounting to 20% of the contract price - will be paid as per the original schedule and the three vessels are slated for a delayed delivery in end-June 2010 instead of December 2009. Additionally, the shipowner has agreed to compensate Cosco Dalian for all expenses incurred with respect to the two cancelled orders for which construction has not commenced.  [03/12/08]

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