Algoma collects $53.4m refund for cancelled  bulk carriers

Algoma collects $53.4m refund for cancelled bulk carriers

Canada’s Algoma Central Corporation has received $ 53.4m in refund guarantees for three newbuild orders that it cancelled with Chinese shipyard Nantong Mingde Heavy Industries.

The refund amount for a fourth cancelled vessel is still subject to an arbitration hearing.

The original contract, signed in 2010, was for eight Equinox Class dry bulk carriers, of which three were built before Nantong Mingde ran into financial trouble, leading to Algoma’s cancellations.

Algoma operates a fleet of dry and bulk carriers on the Great Lakes and the St Lawrence Waterway plus some interest in ocean-going dry bulk carriers.

It has signed contracts with shipyards in Croatia and a different builder in China to build the other five Equinoxes.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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