UK-based Lomar Shipping has launched an arbitration fight with China's Zhoushan Changhong International Shipyard over two 5,300-teu containerships.
Lomar is said to have lodged a claim against Zhoushan Changhong under London Maritime Arbitrators Association rules for not honouring the contract the two companies signed in September.
Shipbuilding industry sources said Zhoushan Changhong agreed to sell two neo-panamax containerships to Lomar for about $36.5m each in September.
However, the improved boxship market resulted in rising asset values and is said to have led to Zhoushan Changhong refusing to deliver the vessels at the original price.
The vessels involved are the 5,300-teu Yangtze Shanghai (built 2020) and the 5,300-teu newbuilding (Hull No 725) that is scheduled to be delivered in July or August. The ships are built to the International Maritime Organization's older Tier II emissions regulations.
Bid for commercial solution
Lomar was unavailable to comment on the dispute.
But a source close to the shipowner confirmed Lomar had lifted subjects in the prescribed period and had the deposit ready to be paid.
The yard then reneged on the deal as a result of the rapidly improving containership market, he said.
Another source said the shipowner had lifted subjects in November.
Lomar offered to increase the ships’ price slightly, but the seller turned it down, according to industry sources.
The shipowner offered an additional $1m to $2m for the vessels — which it estimated could be worth between $45m and $50m in the current market — to avoid a legal dispute, a source said.
VesselsValue estimates the Yangtze Shanghai is worth $46.13m and the 5,300-teu newbuilding is valued at $46.18m.
A containership expert said that estimate does not reflect the fact that Lomar was not slated to take delivery of the containerships immediately.
He said the Yangtze Shanghai, which is owned by Zhoushan Changong's shipping arm New Yangtze Navigation, is currently on charter to AP Moller-Maersk until September at about $13,000 per day.
“Lomar will only be taking delivery of the two boxships several months from now and it is not clear if it will get to benefit from the good containership market,” the source said.
Arrests
Last month, the Yangtze Shanghai was arrested at Port Elizabeth in South Africa. Lomar is said to have filed to have the ship seized.
TradeWinds is told that New Yangtze Navigation put down $8m to have the containership released. MarineTraffic lists the Yangtze Shanghai at West Africa.
Sources said Lomar had “ended up with a great deal of hard cash as security” and added that the second vessel is set to be launched in the coming weeks.
The second ship is scheduled to sail on a charter with Maersk, despite the threat that Lomar could seek to arrest it.
Industry sources said the two containerships were part of an eight-vessel order placed by Zodiac Maritime at Zhejiang Ouhua Shipbuilding in 2015.
However, the Eyal Ofer-led company ditched the $380m contract in 2018 when Zhejiang Ouhua shut down its operations and filed for bankruptcy.
Zhoushan Changhong took over Ouhua in 2019 and renamed it Putuo Shipyard.
