SLS may suffer more cancellations

South Korea’s SLS Shipbuilding could suffer a further blow to its orderbook if Stolt-Nielsen decides to cancel its remaining two 44,000-dwt chemical tankers on order due to continued delays in construction of the vessels.

The Norwegian shipowner, which has already axed the first two ships of the series, says the remaining brace will not be delivered this year as planned. CEO Niels Stolt-Nielsen said, “We know they will not be able to deliver the newbuildings on time.”

Earlier in its quarterly report, the shipowner said the vessels were experiencing significant delays and “may be cancelled shortly”. The ships, which cost around $58m each, are set to be operated by Stolt’s joint venture with Gulf Navigation.

Stolt and SLS are locked in an arbitration dispute concerning the two earlier cancellations, which the shipowner says followed significant delivery delays.

Stolt has a further eight 43,000-dwt tankers at SLS. Three of the ships are for delivery in 2011, four in 2012 and one in 2013, but Stolt-Nielsen says it is unclear whether their arrival will be held up by difficulties at the yard.