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Fund cost seen to affect ship orders

Fund cost seen to affect ship orders

Orders for new commodity carriers may be canceled or delayed as owners are unable to secure funds to build the vessels, investment bank Fearnley Fonds ASA said.
"We believe a significant portion of current dry bulk will be canceled/delayed," Fearnley analysts led by Rikard Vabo in Oslo wrote in a report today.
Jinhui Holdings Ltd., a Hong Kong-based shipowner, said today it canceled $245 million of orders for two so-called very large ore carriers because of rising finance costs.
Booming shipping markets have prompted owners to place orders for 2,155 coal, iron ore and grain transporters, according to Lloyd's Register-Fairplay data on Bloomberg. That's equivalent to about 37 percent of the fleet already in service and is the largest vessel-construction program in history.
Fearnley said most new shipbuilding contracts secure finance within two weeks of the order being placed. Jinhui ordered its ships in November last year.


Updated : 2021-09-20 07:59 GMT+08:00