Shanghai: Financially troubled shipyard Sainty Marine has announced that it has entered into arbitration with Singapore-based owner SE Shipping over a contract dispute.
SE Shipping signed a bareboat charter contract with Shungao Shipping, a wholly owned subsidiary of Sainty Marine, in 2013. Under the contract, SE Shipping will charter a 31,200dwt newbuild multi-purpose vessel from Shungao Shipping after the vessel is completed at Sainty Marine.
SE Shipping has subsequently requested to cancel the contract on the basis of the shipyard not being able to get a refund guarantee and the vessel being delayed beyond the contracted timeline.
Sainty Marine has suffered numerous cancellations as it struggles to survive the restructuring of Mingde Heavy Industry, with Precious Shipping and Universal Marine among those to have cancelled orders.