Chinese yard delays newbuilds

Jiangsu Yangzijiang Shipbuilding recently revealed in its financial statement for the first half of 2009 that it has agreed to postpone delivery dates for 18 newbuildings for maximum of two years, and also agreed to review prices on eight newbuildings.

Change in delivery schedule will be from five months up to 24 months. The yard claims that it has responded to delivery-postponement requests only for those orders where a 40% down payment has been paid.

As for ship price reviews, price reductions totalling $38 million, equivalent to 5% of the contracted value, will be made for eight ships. Three of the eight ships were already completed in April-June 2009. The yard’s order backlog comprises 139 ships valued at $6.1 billion, but there is no order cancellation according to the shipbuilder.