Last week, New York-listed Genco Shipping announced it was forfeiting $53m in deposits it had placed to buy six new vessels due to cost a total $530m. Hellenic Carriers, listed on London's junior Aim market, said it was forfeiting a $6.97m deposit and making a further $1m payment to abandon a $69.7m contract sealed in July to buy a dry bulk carrier. At the same time, Oslo-listed Golden Ocean told Lloyd's List, the shipping daily, it was reviewing its ship orders, although none had yet been cancelled.

The cancellations follow a collapse in the short-term, spot market rates for dry bulk ships carrying iron ore, coal, bauxite, wheat and other commodities. The fall – of 71.9 per cent in October alone – has sent ship values tumbling. Consequently, it is often more worthwhile for shipowners to forfeit their deposits and pay compensation than to go through with deals on which they would never earn a reasonable return.