Hong Kong: Hong Kong-listed Qinfa Group, a leading coal trading company in China, announced that it has entered agreements with Harbour Well Shipbuilding and Merit Sino International Shipbuilding to terminate shipbuilding contracts for two 82,000dwt bulk carriers. Harbour Well and Merit Sino are both wholly-owned subsidiaries of the group.
The group believed that the termination of the construction of the two bulk carriers will reduce further capital expenditure and the operational expenses incurred by the group for its fleet.
“Due to the prevailing fleet rates and the current market condition, the directors consider that it would not be economical for the group to continue to enhance its own fleet,” the group said in a release.
Cargo owners ditching fleet expansion plans will come as a relief to dry bulk owners. [03/07/13]
