Pan Ocean axes heavylift newbuilding contract

In a brief statement on Monday, Pan Ocean said “the company and the shipyard have mutually agreed to cancel the shipbuilding contract as the shipyard has encountered difficult situation in shipbuilding.”

Pan Ocean, formerly known as STX Pan Ocean, had ordered the 31,000-dwt heavy lift vessel in May 2012 at approximately $80m. The order was made to diversify into a new business of heavy lift.

Last week, Pan Ocean failed in its bid to sell all its shares held in Heungkuk Mutual Saving bank for its business structure reform. The shipowner has undergone a restructuring process that allowed it to reduce its assets and liabilities to continue its operations.

Last year, the shipowner recorded a massive full year loss of $1.77bn and its revenue sank due largely to a smaller fleet size and decreased cargo volumes.