Cido PCTCs may get cancelled

Hong Kong-based Cido Shipping is said to be looking at cancelling orders for PCTCs as it mulls options to make further cuts to its backlog of around 100 newbuildings.

The shipowner reportedly wants to ditch four 2,400-car-equivalent-unit (ceu) PCTCs booked at Yamanishi Zosen of Japan which is scheduled to deliver the first newbuilding in May 2010. Cido officials decline to comment on the move and a Yamanishi executive says the yard has not received any cancellation notice.

Industry sources believe that Cido wants to cancel the ships because they were ordered for its own trade. “Cido was probably looking to trade these 2,400-ceu vessels on the Southeast Asia and Australia routes. But with the downturn, the company is facing some difficulties in raising loans for its big fleet of newbuildings, so cancelling the PCTCs at Yamanishi is an option,” said one.

Another source says Cido contracted the ships for „3.8bn ($40m) and, if it is to stick to these terms, it would probably lose money. In June, the privately-owned company was said to have cancelled five 32,000 DWT handysize bulkers at Hakodate in Japan with the shipyard pocketing a „2.389bn deposit.