Norwegian LNG transportation company Awilco LNG has received a charter cancelation for WilForce, an LNG tanker which was damaged in a collision off Singapore last month.
WilForce is currently undergoing repairs at a yard in Singapore following the collision with Handy bulk carrier Western Moscow.
WilForce sustained hull damage but there were no crew injuries or spills.
Repairs are progressing as planned and are expected completed by late August or early September, Awilco LNG said. Costs of repairs are covered by insurance.
At the time of being struck by the other vessel, the WilForce was employed on a time charter contract with a duration of up to 12 months which commenced in September 2018.
On June 24, 2019, an undisclosed charterer notified Awilco LNG of its decision to cancel the remaining period of the time charter contract due to the prolonged off-hire period required to repair the 155,900 cbm vessel.
“This is a right the charterer has in accordance with the charter party terms. The vessel has loss of hire insurance in line with market rate levels which compensates for most of the lost time charter hire,” the company explained.
As Awilco LNG holds the other vessel liable for the collision, the company expects to recover all costs and expenses, including insurance deductibles, off-hire and lost time charter hire in due course.
According to Awilco LNG, WilForce is expected to be available for new chartering opportunities ahead of the seasonally stronger Northern Hemisphere winter period.
The company sees the chartering market tightening in Q4 2019 on the back of newbuilding deliveries tapering off in the second half of 2019 coupled with most of the new LNG production capacity scheduled for start up in 2019 being commissioned in the second half of the year and of course increased demand ahead of winter. This view is already supported by the current soft rates in the prompt compared to higher rates obtainable for contracts starting in Q4, the company said.