China's Shanghai Waigaoqiao Shipbuilding (SWS) is celebrating a London arbitration victory worth $14m plus interest over former customer Cobelfret of Luxembourg.
The dispute concerns a much resold capesize, the 181,000-dwt former Lowlands Audacity (renamed Courageous, built 2016).
The ship had been ordered by Greece's Gleamray in 2013 for $47m and then sold on to an affiliate of Cobelfret in August 2015 for $43.5m, which was still far above the levels that would be prevailing a year later.
However, Cobelfret rejected the ship before delivery, claiming unsatisfactory speed performance in sea trials.
SWS disputed the objections but declared Cobelfret in default and sold the ship to another buyer, Teh Hu Cargocean Management, for a price variously reported as $33m or $34m.
In addition, the builder kept Cobelfret's down payment of some $14m, and Cobelfret brought an arbitration proceeding for a refund of its payments plus interest.
According to press reports this week, SWS prevailed in a 28 June 2017 arbitration award, which Cobelfret appealed to the London High Court. No public record of a High Court ruling on such an appeal exists, but yard sources told Chinese media this week that the appeal was rejected in November.
TradeWinds was unable to obtain comment from Cobelfret.
