Precious Shipping refuses delivery of two vessels from Sainty Marine

Precious Shipping refuses delivery of two vessels from Sainty Marine

Shanghai: Financially troubled Sainty Marine has announced that Precious Shipping has refused to take delivery of two 64,000dwt bulkers from the yard, which might lead to the two companies to go into arbitration.

Precious Shipping ordered the two vessels at Sainty Marine in April 2014, and Sainty Marine sent notices to Precious Shipping in March 2015, asking it to take deliveries of the vessels on April 17 and April 24. However, Precious Shipping has refused to take deliveries as it reckons the vessels didn’t meet quality standards.

In the meantime, Sainty Marine said it is facing the risk of not being able to fulfil some of the 32 newbuild contracts it has being built at Mingde Heavy Industry due to the ongoing restructuring of the latter.

So far 3 out of the 32 vessels have been delivered, 2 have been cancelled, and the deliveries of another two vessels are overdue.

Sainty Marine is facing a series of financial troubles, it currently has $57.5m in overdue loan and its bank accounts have been frozen.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.

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