Dubai-based shipper, Gulf Navigation has lost an arbitration case in the United Kingdom related to the dispute with Chinese shipbuilder Jin Hai Heavy over the shipbuilding contract for two very large crude carriers (VLCCs).
The contract for two VLCCs dates back to 2011 and concerns a group of Chinese shipbuilding companies including Jin Hai Heavy Industry, Zhoushan Jinhaiwan Shipbuilding, Grand China Logistics Holding and HNA Group.
According to the Chinese shipbuilder, London Maritime Arbitration Court ruled in favor of Jin Hai ordering Gulf Navigation to pay the second part of the shipbuilding contract (including interest).
The total amount to be paid for the court ruling could reach $32 million, Gulf Navigation said in its statement. The company also said that its legal advisors are studying the case and that an appeal against the decision will be submitted.
WMN Staff, April 4, 2014