Algoma wins tanker newbuilding dispute

May 03 2013


In a London arbitration tribunal hearing involving a shipbuilding contract dispute between Algoma Tankers International, a wholly owned subsidiary of Algoma Central Corp, and a Chinese shipyard, has found in favour of Algoma.

"We are extremely pleased that the tribunal agreed with the merits of our claim", said Greg Wight, president and CEO of Algoma Central. "We will now proceed to make a formal demand for reimbursement of our instalment payments, as provided for under the terms of the contracts."

"A lot of effort went into achieving this result," added Duncan Jackman, chairman of the board of directors of Algoma. "I would like to extend my thanks to everyone involved in this for their diligence and hard work."

In 2007, Algoma, through its wholly owned subsidiary, entered into contracts to build three 16,500 dwt product tankers in China. Each contract contained provisions that permitted cancellation under certain conditions.

These conditions were allegedly met in 2010 and Algoma accordingly issued notices of rescission to the shipyard seeking to cancel the contracts and demanding reimbursement of the instalments that had been advanced.

The matter was taken to arbitration by the shipyard and hearings were conducted before the tribunal in London in September, 2012.


 



Previous: Braemar expands tanker department

Next: VLCC sale lights up dull market


Dec 2021

Filters or filterless BWMS - kites for tankers - biofuels - LPG - LNG - methanol - ammonia