Precious Shipping cancels two more shipbuilding contracts at Sainty Marine

The latest cancellation follows an earlier contract termination in September this year for two similar 64,000 dwt bulkers, which were part of an order for 14 units made in February 2014.

“Since the vessels have not been delivered in compliance with the contracts and the technical specifications related thereto within the relevant contractual cancellation dates, the company has exercised its contractual right and cancelled the contracts for excessive delay in delivery,” Precious Shipping announced to the stock exchange.

It added that it is seeking refunds of $11.6m per vessel paid to Sainty Marine, along with interest.

A similar amount was sought by Precious Shipping for the cancellation of the earlier two shipbuilding contracts.

Meanwhile, Precious Shipping is also seeking arbitration in London over two other 64,000 dwt bulkers also ordered at Sainty Marine due to off-specification relating to the vessels’ lack of fuel efficiency.

The ships were delivered to Precious Shipping in July last year, and they were recorded to have consumed excessive fuel when they were supposed to be fuel efficient.

Sainty Marine has also confirmed that it is delaying the delivery of a further two sister bulkers to Precious Shipping, while another unit could not be delivered and the yard has informed the shipowner to abort the contract.