Hong Kong-listed asphalt carrier specialist Xin Yuan Enterprises has entered into an agreement with subsidiaries of Cosco for the early termination of the long-term charter contracts for two asphalt carriers San Du Ao and Zhuang Yuan Ao.
The two 12,800 dwt vessels were chartered to Cosco Southern Asphalt Carriers for a period of ten years starting from August 2011 and July 2012 respectively.
Xin Yuan will receive compensation of $3.91m from Cosco for the early termination of contracts.
According to Xin Yuan, the early termination of contracts was due to the fact that a ship management unit of Cosco has been sanctioned by the US and the company worries that there is risk of the company’s vessels being sanctioned if the scope of the sanction is to be expanded.
Xin Yuan is now looking for new charterers for the two vessels.
Xin Yuan diversified into the dry bulk sector in November with the acquisition of a secondhand capesize bulker.