Thailand’s Precious Shipping has reached settlement agreements with China’s Sanfu Ship Engineering that will save it approximately USD4 million over two soon-to-be-delivered vessels, the dry bulker has said in a Thailand stock exchange filing.
Under the agreement, contract price for the two previously-ordered vessels will be reduced to USD25.5 million from UDS27.5 million per vessel, Precious Shipping said in the filing.
Delivery is now rescheduled for the end of October, following an amended payment schedule.
“The Seller shall deliver the Vessel with full title guarantee and free of any encumbrances, and the Buyer (or its nominated subsidiary) shall take delivery of the Vessel bearing Hull No. SF130124 on 27 October 2015, and of the Vessel bearing Hull No. SF130125 on 28 October 2015,” the filing added.
The dispute, over the sensitive issue of oil consumption, had arisen in the two shipbuilding contracts dated 20 December 2013 for two 63,345 dwt bulk carrier vessels bearing hull numbers SF130124 and SF130125, but was resolved after arbitration in London.
“A dispute has arisen between the Parties as to whether the Buyer is entitled to damages (excluding liquidated damages under Article III.3 of the contract) for breach of the contract and/or specifications by reason of the vessel’s fuel oil consumption, and if so, in what amount,” Precious Shipping’s filing read.