CMB, Belgian dry bulk shipping company, said on Tuesday that it had decided to cancel the orders for four vessels with South Korean shipbuilder Samjin as the yard was not able to respect the contractually determined delivery dates.
The newbuilds relate to hulls 1052, 1053, 1054 and 1055, according to the company. An amount of USD 29.9 million representing the advances paid – including interest – has already been reimbursed.
The company said that its unit Bocimar continues to closely monitor the situation of the yard and does not rule out any future subsequent cancellations.
Bocimar ordered six vessels from Samjin in 2011, with two more on option.
CMB recorded a first-half net loss of $2.8 million according to the company’s final consolidated results published yesterday.
“Based on the half year results and taking into account the cash needs of the Group, the board of directors was of the opinion that there was no reason to distribute an interim dividend for the year 2014,” CMB said.
By comparison with the first half of 2013, CMB said that the Capesize spot markets have seen a strong recovery. The moderate influx of new tonnage and the growth of the world sea borne transport of iron ore contributed to this recovery.
The developments in the other segments, in particular in the Postpanamax and Handysize sectors, have had a negative impact on Bocimar’s results. These segments have suffered from a weak market for the transport of iron ore and the Indonesian ban on exports of processed minerals (nickel ore, iron ore and bauxite).
“Taking into account, amongst other things, the further growth of Brazilian exports of iron ore, the Capesize segment could see some improvement during the second half of the year,” CMB added.
Press Release, August 27, 2014; Image: shipregistration.be