Shanghai: Jinhai Heavy Industry, is facing a crisis of massive cancellations. After Ultrabulk cancelled two kamsarmaxes and John Fredriksen’s Golden Ocean Group cancelled two bulkers, another John Fredriksen-controlled company, Frontline 2012 might cancel up to 5 VLCC orders at the yard.
The orders of VLCCs was signed in 2008 and delivery time was amended in 2010 to January 2012- February 2013, with estimated cancellation dates from August 2012 until September 2013. Frontline was entitled to cancel the first one from the contract in August.
Currrently, John Fredriksen’s companies contribute about 25% of Jinhai’s onhand orders. [29/11/12]