Jakarta: Decreased freight rates have led Indonesian shipping company PT Humpuss Intermoda Transportasi to abandon its plans to purchase two Panamax-size vessels, choosing to meet capacity demand through rentals. The contracts, worth $170m, were with an undisclosed Japanese yard and are believed to carry no cancellation fee.
Company president director Agus Darjanto (pictured) is quoted by Antara News as attributing the decision to the fact that the current global financial crisis has left many cargo vessels "idle" and that ship rental tariffs currently hover at about $7,000 a day (down from $40,000), thereby making renting a financially viable option. [19/11/08]
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