Cosco cancels US$300m order

COSCO    LOGISTICS    SHIPPING

China - Cosco have cancelled nearly US$300 million worth of bulk carrier newbuildings ordered at their shipyards in China.

Two subsidiaries of China Cosco Holdings, Qingdao Ocean Shipping and Cosco Hong Kong shipping have cancelled eight 57,000 dwt supramax bulker newbuildings ordered at Cosco Zhoushan Shipyard. The orders have a combined worth of US$298.7 million.

In a filing with the Singapore Exchange, Cosco also said it has agreed with the two subsidiaries to delay delivery dates of three vessels to between August 15 and October 31, from their original delivery date of between June 20 2008 and December 10 2008.

Cosco said it will refund instalments already paid under the contracts for the cancelled ship orders.

The company does not expect the cancellations to have a significant impact on its net tangible assets and earnings per share for the year ending December 31.

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