Asia

Loss-making JES International hits out at “demanding” clients

Singapore: Singapore-listed Chinese yard JES International went into the red in 2012 as some customers “became more demanding than ever on their ship inspection which inevitably resulted in delays of the delivery” the yard noted in a release. The shipbuilder registered a net loss of RMB122.3m, comparing poorly with 2011’s net profit of RMB202.9m.

“During the present difficult times in shipping industry,” the yard reported, “customers are less keen to take delivery of the vessels due to lack of chartering contracts and much lower resale values for their ordered vessels. Hence, some of the customers became more demanding than ever on their ship inspection which inevitably resulted in delays of the delivery. Delayed vessels occupied the yard’s resources and affected the delivery of next following vessels as well. As a result, the group has to negotiate deferred delivery of some vessels that resulted in discounts on the contract prices. Similarly, the group incurred higher payment for liquidated and ascertained damages for delayed deliveries”.  [27/02/13]

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