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Some Ship Owners Cancel Shipbuilding Orders at STX Shipbuilding

STX shipbuilding

Some ship owners reportedly cancelled past shipbuilding orders at STX Offshore & Shipbuilding Co.

 According to STX Shipbuilding which has filed for receivership, Frontline, the world’s largest oil tanker shipping company, recently asked STX Shipbuilding to cancel its four very large crude oil carrier (VLCC) new-building contracts. An official from STX Shipbuillding said, “Recently, Frontline asked to cancel its four newbuilding contracts and we are in negotiation now. The company hasn’t confirmed whether to cancel them yet.”

Four VLCCs ordered by Frontline are set for delivery in 2017 and the remaining commitments total US$319 million (380 billion won). Frontline has refund guarantees in place for all four VLCCs so it will not make any loss even when cancelling the contracts.

STX Shipbuilding is communicating with many ship owners about newbuilding contracts after filing for receivership. However, there is no orderer asking to cancel contracts other than Frontline.

The Original Posted by Jung Min-hee/Business Korea

MACNET Korea