Wisdom Marine announced on July 13 the cancellation of the order for two 39,000 dwt high-specification bulk carriers from Japan's Naikai Zosen, originally approved by the company's Board of Directors on March 17 last year.

Wisdom Marine stated that as no formal contract had yet been signed and no payments had been made in connection with the transaction, there is no material impact on the company's financials or business operations.

The original unit price for each of the two vessels was not to exceed US$35.375 million, with the total transaction value capped at US$70.75 million.

Wisdom Marine currently has eight bulk carriers under construction. According to company management, should a shipbuilding project be approved by the Board and subsequently proceed to contract signing, a further announcement will be made. The two vessels approved by the Board last year were not included in the list of vessels under construction as a building agreement could not be finalised with the shipyard. The current announcement was made at the request of the regulatory authorities.

During the first half of this year, Wisdom Marine took delivery of five 40,000 dwt bulk carriers, with a further three vessels of the same class scheduled for delivery in the second half. Wisdom Marine has previously indicated that charter rates for this batch of Ultramax vessels are expected to be in excess of US$15,500 per day, on which basis the newbuildings are projected to achieve a gross profit margin in excess of 50%, generating a positive contribution to the company's operating results in the second half.