SITC International Holdings has last Friday terminated contracts to build two containerships with a South Korean shipyard.
SITC has the option to discontinue the contract before 31 August without incurring any penalties.
The notice of termination was made after “careful evaluation of the company's requirements”, SITC said in a statement.
The two containerships are 1,040 teu in capacity and they were booked in January for approximately $39m.
The Hong Kong-listed SITC believed the termination of the shipbuilding contracts will not have any impact on the company's financial position and operation.