NS United Kaiun Kaisha, Ltd. (NSU), announces that its Board
of Directors has resolved on December 26, 2012, for early cancellation
of time charters agreed between NSU and foreign shipowners (Third
Party), resulting in appropriation of extraordinary loss in the 3rd
Quarter of Fiscal Year ending March 2013, as follows;1. Reason for early cancellationsRegarding surrounding business environment, improvement in
profitability is expected by the falling exchange rate of yen. However,
the dry bulk market continues to keep at low levels, resulting in harsh
conditions for the shipping industry. The mass completion of new vessels is observed to have passed its peak, but the market is forecasted to
remain unstable due to excessive tonnage.Under such circumstances, we have reviewed the competitiveness of our fleet and in order to improve future profitability, we have been
negotiating with the shipowners for early cancellation of time charters
agreed at high rates. Agreements have been reached at conditions below.2. Conditions for early cancellationsRedelivery dates : January to February, 2013Cancellation fees : Approximately 2,200 million yen (Amount may vary depending on actual redelivery date)The shipowners : Confidential under their intentions3. Effect on resultsAbove amount will be appropriated as extraordinary loss in the 3rd Quarter of Fiscal Year ending March2013. Meanwhile, its impact on the results is being examined and it shall be announced promptly if a revision is necessary.
WORLD SHIPPING
27 December 2012 - 20:32
Japan: NSU Announces Early Cancellation of Time Charters
NSU announces that its Board of Directors has resolved on December 26, 2012, for early cancellation of time charters
WORLD SHIPPING
27 December 2012 - 20:32
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