Dry CargoGreater China

Shagang Shipping wins long-running court case against HNA

A marathon court case regarding a ship charter dispute between Chinese companies Shagang Shipping and HNA Group has finally come to a close with the UK Supreme Court ruling HNA to pay $68.6m to Shagang Shipping.

Shagang Shipping first filed a lawsuit against HNA in 2012 for a dispute over a capesize charter contract, governed under UK Law, with HNA shipping unit Grand China Shipping. HNA filed its defence arguing that the contract was a result of bribery, rendering the whole deal unenforceable based on confessions made by three people during investigations by the Chinese Public Security Bureau.

However, Shagang alleged that the confession evidence was obtained by using torture and was therefore inadmissible. According to the supreme court, the judge did not have to review the torture claims as he found no evidence to prove that the alleged bribery took place.

Shagang Shipping went into liquidation in 2015 and HNA is currently under a government-led restructuring due to a debt crisis.

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.
Back to top button