Chengxi Shipyard, part of China State Shipbuilding Corp (CSSC), has agreed to pay $875,000 to TorvaldKlaveness in a London arbitration over deficiencies in a bulker carrier.
In an exchange filing, China CSSC Holdings—the Shanghai-listed flagship unit of CSSC—said Chengxi would be compensating the Norwegian owner for issues related to the torsional vibration damper on the ship.
The 71,900-dwt self-unloader was originally named Balto (built 2013). In November 2015, Balto was sold to Canadian owner CSL as part of an en-bloc sale and renamed CSL Tarantau.
In 2016, Klaveness initiated the arbitration procedure in London to ask for $2.48m compensations from Chengxi, which had built the ship, for deficiencies of the damper and costs related to replacement.
The two parties eventually selected Adam Fenton as the arbitrator and reached a settlement on 31 May.
“This is a case dating back to the delivery,” Klaveness chief executive Lasse Kristoffersen told TradeWinds.“ We are happy that the case could be settled to our satisfaction.”
The $875,000 compensation is about the quality guarantee, according to the filing. Kristoffersen confirmed all disputes in the arbitration were fully settled.
