Canada’s Algoma Central Corporation has announced that a London arbitration tribunal hearing a contract dispute involving three shipbuilding contracts between the company and Nantong Mingde Heavy Industry has found in favour of the shipowner.
Algoma signed shipbuilding contracts with Nantong Mingde in 2010 to build six equinox class bulk carriers as part of its fleet optimization plans. Mingde only delivered two of the vessels and the company has cancelled the remaining four due to the bankruptcy of the shipyard.
Algoma said the tribunal decision has resolved three of the claims and claims for the remaining contract are being pursued.
“We are extremely pleased that the tribunal has acted quickly to decide on this matter, given the bankruptcy of the shipyard”, said Ken Bloch Soerensen, president and ceo of Algoma. “We will now proceed to make a formal demand for reimbursement of our instalment payments as provided for under the terms of the contracts. The funds intended for these ships will be redirected towards investment in replacement fleet renewal contracts that we have announced in recent months.”
Algoma has since turned to Yangzijiang Shipbuilding, ordering two self-unloading bulkers in December 2015.