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Zhongchang Marine cancels JES order

Shanghai: Zhongchang Marine has announced that the company and Minsheng Financial Leasing have together cancelled one of the two 47,500dwt bulkers they had ordered at Jiangsu Eastern Heavy Industries, a shipyard controlled by Singapore-listed JES International, who have just filed for restructuring protection.

Zhongchang Marine said the depressed situation in the shipping market will continue and won’t be improved in the short term, and the company has decided to cancel the bulker in order to minimize risk. The company has asked the yard to refund the prepayment and relevant interest of more than RMB70m ($11.27m) as it claims the yard has lost its ability to fulfill the contract.

Zhongchang Marine expects to register a net loss of RMB330m ($53.1m) for the year of 2014 and its stock trading is facing trading limitations after losses over two consecutive years.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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