Singapore Cosco client cancels order for two vessels

Singapore-listed Cosco Corp said that a customer has scrapped orders for two of five bulk carriers because of unfavourable market conditions. The Chinese ship building and repair firm will also postpone delivery of the remaining three vessels to June 2010 from December 2009. Cosco did not disclose the contract value, but a July 2007 statement said the firm had clinched orders for eight 57,000 DWT bulk carriers worth a total of $313 million. As part compensation, the buyer has to pay 80% of the contract price for the remaining three vessels this month. The buyer will also compensate Cosco Dalian for all expenses incurred for the two cancelled orders, for which construction has not started.