A charterer has launched arbitration against Greek bulker owner Overseas Marine Enterprises after cargo and operational disagreements during the charter allegedly scuppered a large industrial contract.
Indian charterer Aruna Shipping and Dubai-based affiliate JAC Global Shiptrade are pursuing claims that the two companies value at about $15.88m, according to documents seen by TradeWinds.
The figure is based largely on claims of contracts lost as a result of alleged breaches of the charter contract. An arbitration panel has been named in London in the dispute.
Indian charterer Aruna is unrelated to a Turkish shipowner with a similar name.
The documents show that in a 19 January fixture, Aruna or JAC chartered the 53,600-dwt Leonidas (built 2005) through the Singapore arm of Braemar ACM Shipbroking at a rate of $14,000 per day to carry aggregates from Kandla in north-western India to Chittagong in Bangladesh. Operational disputes arose, leading to the charterers' claim.
JAC declined to comment on the dispute. A company official who was unwilling to be identified said JAC would take whatever legal steps were necessary to pursue its claim.
Overseas Marine's London lawyer, Menelaos Nicolaou of law firm Campbell Johnston Clark, declined to comment on the operational and commercial particulars of the dispute, as they are "subject to confidentiality obligations" under the charter contract and the arbitration rules.
But he said the allegations against his client are false and Overseas Marine's side considers them malicious.
"The claim made by JAC and/or Aruna is baseless as to liability and quantum," Nicolaou told TradeWinds by email.
Documents obtained by TradeWinds show that the shipowner believes the charterer is keen to arrest ships in order to obtain security for the claim before the London arbitration panel.
One difficulty for the charterers in pressing their claim is that they negotiated the charter under the name Aruna and ultimately recapped it under the name JAC.
It is Overseas Marine's position that Aruna is legally the charterer, according to an email seen by TradeWinds from Nicolaou to the charterers' lawyers, Lester Aldridge (LA Marine).
"[A] claim for overpaid hire and damages in excess of $15m is being asserted against owners by JAC Global Shiptrade DMCC under the charterparty," Nicolaou wrote.
'Matter of urgency'
"In circumstances where JAC have threatened to arrest owners' assets as security, a determination as to whether JAC is a party to the charterparty is required as a matter of urgency."
Shipping databases attribute to Overseas Marine a fleet of five supramaxes trading globally.
The Leonidas was arrested briefly in Bangladesh, but that action was by cargo interests, not by charterers. The vessel subsequently sailed from Vizag in eastern India with a Rungta Mines iron ore cargo under charter to Seacon Shipping and on 26 March was waiting to discharge at Rizhao in China.
The charterer has appointed Alan Oakley to the arbitration panel, while Overseas Marine has appointed Daniella Horton.
The arbitration is the first known dispute involving the Greek shipowner since TradeWinds reported in August 2018 that the Leonidas, under its former name Dawn, had been released from an arrest at Singapore after a collision with a Gourdomichalis Bros supramax at Chittagong.
