SINGAPORE listed Yangzijiang Shipbuilding, the largest privately owned Chinese yard, has suffered three order cancellations, one for a 10,000-TEUer, one for a 82,000-dwt bulker and another for a 64,000-dwt bulk carrier, according to DBS Group Research.
But Yangzijiang, whose main yard is near Shanghai in adjacent Jiangsu province, does not expect the financial impact to be damaging as construction of the vessels had not yet commenced. In the first quarter, the company reported a total of eight vessel cancellations.
"Management does not rule out the possibility of more cancellations given the challenging market conditions, but it is unlikely to be high unless the shipping market deteriorates further," DBS Group Research was cited as saying in a report by Singapore Business Review.
Despite the back-to-back slump, Yangzijiang Shipbuilding secured orders worth US$80 million for four 1,800-TEU ships in the second quarter, lifting year-to-date wins to US$590 million. However, this made up only 24 per cent of its internal target of US$2.5 billion.
Source : SN-TR.