Vapores delays new ship order as shipping dwindles

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Wednesday, 19 August 2009

Chile-based Vapores, the region's leading shipper, said on Tuesday it had delayed an order for new vessels to save costs as dwindling international trade hits its earnings. In a note to the country's market regulator, the company said that instead of ordering four ships of 12,600 twenty-foot-equivalent units (TEU) for delivery between 2010 and 2011, it would get five ships of 8,000 TEU each to be delivered between 2011 and 2012. Vapores plans to save around $19 million with the new order.
The ships' builder is South Korea-based Samsung Heavy Industries, Vapores said.
The company said it had reached an agreement with a group of banks led by BNP Paribas to finance the new ships and two others under construction.
Facing a weakened shipping market Vapores posted losses of $413 million in the fist half of the year. Global shipping fees have been reduced to a fraction of previous levels because of the recession.

Source: Reuters