Time Charters Cancelled by Japanese Charterer

NS United Kaiun Kaisha (NSU) resolved early cancellation of dry-bulk ship  time charters due to unfavourable economic market conditions.

The cancellation will result in appropriation of extraordinary loss in Q3 2013.

Reason for the cancellations
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, NSU has reviewed the competitiveness of its fleet and in order to improve future profitability, has been negotiating with the shipowners for early cancellation of time charters agreed at high rates.

Conditions for early cancellations
Cancellation fees: The shipowners concerned, in the period January to February, 2013, will be due approximately 2,200 million yen (amount may vary depending on actual redelivery date).