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Korea Shipbuilding receives contract termination for 10 VLCCs

Korea Shipbuilding receives contract termination for 10 VLCCs

The South Korean shipbuilding giant Korea Shipbuilding & Offshore Engineering (KSOE) has announced the termination of contracts for ten very large crude carriers by two of its subsidiaries (VLCCs).

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Hyundai Heavy Industries was contracted to build seven VLCCs from the batch, while 3 VLCCs were expected to be constructed by Hyundai Samho Heavy Industries.

KRW 986 billion ($877 million) is the total value of the deal, Hyundai said in a regulatory filing.

KSOE reported that the contracts were terminated after the payment deadline had not been reached by an unnamed Oceania-based shipowner.

For 2020, amid a major downturn in the sector due to the effects of the Coronavirus pandemic, KSOE's units won orders for 116 ships worth about $10 billion, inching close to its $11 billion target.

For 2021, in the middle of an optimistic outlook on shipbuilding demand, the shipbuilder raised its goal to a combined $14.9 billion, Yonhap says.

Maritime Business World 

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