Evangelos Marinakis-controlled Capital Ship Management said late on Monday its long-term bareboat charter agreements with Al-Iraqia Shipping Service & Oil Trading (AISSOT) have been terminated and that all six VLCCs under the deals are now trading spot or in short-term employment.
As a result of a lengthy and ongoing dispute arising from the cancellation, AISSOT seeks to arrest one of the Greek owner’s ships, the 320,800-dwt Andronikos (built 2019). The vessel, which is also known as Anbar, is currently at anchor off Singapore, according to ship trackers.
Capital, the Anbar's owner, said in a statement it will “move immediately to release the vessel and post security as required” and that it did not expect any business disruption or delay in the schedule of this or of any other of its VLCCs.
Rumours about the end of the cooperation between the two firms had been circulating since last month but both companies’ declined to comment on them.
Capital is now the first to publicly share its side of the argument, in order for market players "to have a better understanding of the situation," as it said.
According to its statement, the Piraeus-based company called for the vessels to be redelivered as early as in December, after AISSOT failed to provide a satisfactory response to Capital's repeated calls “to comply with certain protective clauses of the respective charter parties”.
At the same time, Capital referred the matter to arbitration, pending the outcome of which the vessels would continue to be employed by AISSOT - a joint venture between Iraqi Oil Tankers Co and Arab Maritime Petroleum Transport Co (AMPTC).
AISSOT then on 22 February gave notice it was terminating the charters and that the ships would be redelivered to Capital. In its statement, Capital attributed AISSOT’s move to the “dire market conditions” prevailing at the time.
“Nonetheless, owners accepted redelivery in order to protect their rights and safeguard themselves from charterers’ failures to comply with the charter parties, while awaiting for the tribunal’s decision,” Capital said.
AISSOT’s subsequent move to arrest the Andronikos is “a clear effort to disrupt owners’ business,” Capital said. “Owners will seek damages in return from AISSOT and the AISSOT-managed fleet, as well as its shareholders,” its statement added.
TradeWinds first reported about Capital and AISSOT concluding five-year bareboat VL deals in September 2017, soon after AISSOT was formed. These agreements were reportedly concluded at about $23,000 per day.
AISSOT did not immediately respond to an e-mailed request for comment. Executives of the company were not available by phone.
