Skaugen wins fuel consumption arbitration with MAN Diesel

Norwegian owner I.M. Skaugen has won an arbitration case in a dispute with MAN Diesel & Turbo concerning the fuel consumption on its marine diesel engines.

Since 2000, Skaugen and MAN Diesel had a collaboration on twelve sets of marine diesel engines for ships which Skaugen had operated in its fleet. According to Plesner, the law firm representing I.M. Skaugen in the case, in the period of 2000-2011 MAN Diesel deliberately manipulated the official factory acceptance tests for engines so that it looked like the engines met the fuel consumption warranties, which they in reality did not, and it was not until June 2012 that MAN informed Skaugen about the issues.

Morits Skaugen, CEO of Skaugen brought up the case and blasted MAN in October 2015 following German car manufacturer Volkswagen, the controlling group of MAN Diesel, admitting to US authorities that the group manipulates car emission tests.

The arbitral tribunal held that I.M. Skaugen could rightfully terminate the contract with MAN Diesel & Turbo for two sets of marine diesel engines, which SKaugen had done already in 2012, and compelled MAN Diesel to refund Skaugen its down-payment for the engines for the amount of about EUR5.3m ($5.88m) as well as reimburse Skaugen for its legal costs and other costs of about EUR1.4m ($1.55m) which had been necessitated by MAN Diesel’s refusal to provide facts in the case.

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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