China's Jinhai Heavy Industry saw its kamsarmax newbuilding bulkers placed an order by John Fredriksen’s Golden Ocean Group Limited (GOGL) being cancelled.
Even though GOGL had secured a discount of around $10m on the order, it decided to chop off two newbuildings out of three.
Jinhai should pay back $45.8m for the two vessels cancelled to GOGL.
Meanwhile, GOGL announced its plan to cut down its newbuilding orderbook last month and the shipowner is now left with eight newbuildings to its name. Further cancellation is expected to follow.
Sources said that GOGL is also in the process of analyzing various investment opportunities including second hand or resale acquisitions, long term lease structures and newbuildings.