Bangkok-based dry bulk shipowner Precious Shipping has cancelled two newbuildings ordered at embattled Chinese yard Sainty Marine.

Precious Shipping said it had cancelled the contracts for two 64,000 dwt newbuildings it ordered on 24 February 2014 from the Chinese yard.

The company said the vessels had not been delivered in compliance with the contracts and it had exercised its right to cancel them due to “excessive delivery delay”.

Precious Shipping said it was seeking $11.16m per vessel in advance payments paid to Sainty Marine, and interest on that sum.

In July Sainty Marine’s chairman Wang Shuhua resigned after less than a year in the top job at the struggling shipbuilder.