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Precious Shipping loses China yard arbitration over excessive fuel consumption on newbuildsPrecious Shipping loses China yard arbitration over excessive fuel consumption on newbuilds

Precious Shipping has lost an arbitration over excessive fuel consumption on ultramax bulkers built at Taizhou Sanfu Ship Engineering in China.

Marcus Hand, Editor

October 31, 2017

1 Min Read
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“The arbitration process with Sanfu on the excessive fuel consumption issue has been completed with the Tribunal’s ruling going against us,” Precious Shipping said in its third quarter results.

The Bangkok-headquartered dry bulk shipowner ordered 10 ultramaxes from Taizhou Sanfu three of which were later cancelled. The shipyard made unsecured loans to the shipowner on the other newbuilding dependent on arbitrations on the first two newbuildings over an excessive fuel consumption.

“As a result, we will have to repay the $32m unsecured corporate loans that Sanfu had given us,” Precious Shipping. The shipowner has to make the payment plus interest of 6% pa to Taizhou Sanfu by 4 October 2018. It also has to pay legal fees capped at $750,000.

Precious Shipping said its P&L would only be impacted by the interest and legal fees payments.

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About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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