Cosco

Cosco: News Wires reported that Cosco has inked an order to build 2, 61,000 dwt dry bulk carriers for Josco Jiangsu. The newbuilding contract calls for delivery in the 1H14 for the two vessels. Financial terms of the contract were not disclosed but estimates suggested a price tag of $25m each. Josco Jiangsu said the new orders were placed at a time of lower newbuilding prices and to take advantage of fuel savings features of new vessels. We note that the lost costs of the 2 vessels, continue to suggests weak demand and continued headwinds in the drybulk/container shipping industry. Concurrently street isn’t sanguine on the outlook of Cosco, with 3 Hold Calls and 18 Sells and a mean TP of $0.96.