- Iraqi shipping and petroleum trading company Al-Iraqia Shipping Services & Oil Trading (AISSOT) has terminated the bareboat charters for six vessels owned by Capital Ship Management.
- Friction between the two parties goes back to last year at least, when owners’ requests to comply with certain clauses were met with ‘unsatisfactory responses.’
Greek owner Evangelos Marinakis-controlled Capital Ship Management has announced that Iraqi operator Al Iraqia Shipping Services and Oil Trading (AISSOT) has terminated long-term charters of six VLCCs with the company, writes Jason Jiang for Splash247.
The vessels namely Atlantas, Alexander The Great, Apollonas, Atromitos, Andronikos and Agitos were re-delivered.
Failure to comply with protective clauses
The Marinakis-led company said that AISSOT gave notice it was terminating the charters and redelivering the ships to the owners in February 2020, when the estimated remaining period for the said charters was between three to six years.
As informed, AISSOT’s termination was a result of their failure to comply with certain protective clauses of the respective charter parties, Capital Ship Management insisted upon.
As a result, Capital called for redelivery of the vessels in December 2019 and referral of the dispute to arbitration.
Vessels redelivered
AISSOT continued to employ the vessels pending the outcome of the arbitration, however, the company eventually decided to redeliver the ships amid dire market conditions.
“However, notwithstanding that AISSOT redelivered the vessels because of the state of the market, and with what owners believe to be wrongful conduct and in respect of which they reserve all their rights, the M/T ‘Andronikos (ex ‘Anbar’) was arrested purportedly as security for unsubstantiated “market” related damages,” Capital Ship Management added.
“This is a clear effort to disrupt owners’ business and owners will seek damages in return from AISSOT and the AISSOT managed fleet, as well as its shareholders.”
The greek shipowner plans to move immediately to release the vessel and post-security as required and does not expect any business disruption or delay in the vessels’ schedules.
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Source: Splash247
