SSW refuses to cut charter rates for CSAV

[gaf63]

http://www.lloydslist.com/ll/epaper/ll/displayAction.htm;jsessionid=DD67304875982B4AD5C5D2AE7B4715EF?pubCode=001&articleId=20245092977&issueNo=59933

 

The following is an excerpt from the article: 

 

Initially, CSAV was seeking to get $400m out of reduced charter payments. The sum was reduced to $360m when it became clear that Seaspan would not accept any charter rate cuts on four newbuildings and that Singapore Shipping Trust would also not contribute to the rescue scheme.

 

However, sources close to the deal said the non-German owners will also contribute in other ways. Negotiations were on a good path, the sources said.

 

Wonder what this contribution will be??

[SharperDingaan]

 

New-builds often have an escape clause that lets the new owner out if they cant do the maiden charter at a profit. It allows the owner to take a hard line, puts the construction risk on the yard/government, & typically only occurs when the charterer is either having difficulty finding the volume or is short on liquidity.

 

Lower the operating cost (labour, 'deals', etc.), or swap/sublease for some period [swap your new-built ship for someone else's smaller & used one] with a sovereign, & you can get around the issue. If it occurrs you'll also see a lot of smaller ships suddenly loosing their charters - as its their volume that will getting put into these new builds.

 

SD