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HMM cancels order for two bulk carriers

HMM cancels order for two bulk carriers
South Korea’s Hyundai Merchant Marine (HMM) has announced the cancellation of two dry bulk carriers that were ordered in 2013.

In a statement to the Korea Exchange late last week, HMM the newbuilding orders were placed on the back of long term charter contracts, but the orders are now cancelled as the charterer has not managed to obtain any guarantees for the cargo.

The 206,000 dwt bulkers were booked at China’s Bohai Shipbuilding Heavy Industry for approximately KRW56.5bn ($52.6m) each. The newbuildings were supposed to be delivered in January 2017.

Meanwhile, HMM is finding itself in a challenging position amid the sluggish dry bulk shipping market, as it is planning to dispose of its dry bulk business and to concentrate only on the container shipping segment.

It managed to sell off its LNG shipping business last year.