Diana Shipping Abandons Kamsarmax Order

Business & Finance

Athens-based dry bulk shipping company Diana Shipping has decided to cancel the shipbuilding contract for a Kamsarmax dry bulk carrier due to a delay in delivery.

Namely, the company said that the cancellation was served in relation to the shipbuilding deal signed in April 2014 with China’s Yangzhou Dayang Shipbuilding due to a delay of 150 days after the original delivery date.

The Kamsarmax dry bulk carrier was supposed to be delivered on May 31, 2016.

Diana Shipping has also exercised its right to claim a refund of the pre-delivery installment payments in an aggregate amount of USD 8.65 million together with interest at a rate of 5% per annum from the date of receipt of the installment until the date payment is received by the company.

The refund of the pre-delivery installments together with interest thereon is covered by a Refund Guarantee from the Export-Import Bank of China dated June 26, 2014.

Diana Shipping’s fleet currently consists of 46 dry bulk vessels, including 2 Newcastlemax, 14 Capesize, 3 Post-Panamax, 4 Kamsarmax and 23 Panamax vessels.

In addition, the company expects to take delivery of two newbuilding Newcastlemax dry bulk vessels during the fourth quarter of 2016 and the first quarter of 2017.