Global marine transportation company DryShips is to cancel a vessel-building order worth $114 m.

The Capesize newbuilding, Hull 2089, is under construction in South Korea and has the capacity of 180,000dwt.

Under the terms of the agreement, DryShips will pay a $42.8m cancellation penalty, which includes the initial 20% deposit.

Greece-based DryShips owns and operates 42 drybulk carriers worldwide.