BUSINESS

Greek shipper concerned over delays at Chinese yard

China Rongsheng, the country’s largest private shipyard, reported a $1.4 billion loss for 2013 and some customers are worried about Rongsheng’s $4.6 billion worth outstanding orders.

Greek ship operator Dryships Inc has already put down a $11.56 million downpayment, 8.5 percent of the total cost, toward four cargo ships scheduled to be delivered in 2014, but Dryships executives said they aren’t sure Rongsheng has even started cutting steel.

“We don’t want to make any more payments to Rongsheng,” Dryships CFO Ziad Nakhleh has told Reuters. “Things are getting worse, not better.”

Rongsheng said in an e-mailed statement to Reuters that thanks to recent refinancing, it is optimistic it can make delivery, but would not otherwise comment on other refund guarantee cases.

Regardless, Dryships executives also said they expect Bank of China, the guarantor, to refund their money plus 8 percent interest if Rongsheng fails. [Reuters]

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