On March 3rd, Yangzijiang Shipbuilding released an announcement regarding a “partial final arbitration award,” declaring that the arbitration tribunal had dismissed the shipowner’s claim exceeding $800 million.
The announcement disclosed that on June 10, 2022, and September 26, 2022, certain entities (collectively referred to as the “Claimants”) initiated arbitration proceedings with the London Arbitration Tribunal. They alleged breaches of contract by three wholly-owned subsidiaries of Yangzijiang Shipbuilding—Jiangsu Tianchen Marine Import & Export Co., Ltd., Jiangsu Yangzi Xinfu Shipbuilding Co., Ltd., and Jiangsu New Yangzi Shipbuilding Co., Ltd.—based on ten shipbuilding contracts.
The arbitration tribunal has now issued 10 partial arbitration awards for these 10 shipbuilding contracts. Except for the claimant’s request for a refund of the $3.32 million deposit (and potential interest) for two contracts, the tribunal did not support other claims amounting to approximately $832.2 million, including transaction losses and profit losses.
The arbitration, which was filed in 2022, is understood to involve 10 new vessels ordered by the owner with a total value of approximately $900 million.
As disclosed by Yangzijiang Shipbuilding in October 2024, the Claimant placed orders for four and six new vessels in November and December 2021, respectively, and then terminated these contracts on March 24 and May 16, 2022, and claimed US$835 million. Instead, the claimant paid only US$3.32 million for the 10 new vessels.
Yangzijiang Shipbuilding stated that the above arbitration award is final, but it is not yet possible to ascertain the claimant’s subsequent actions. The Company is working closely with its legal advisers to discuss the remaining issues and response strategies. The arbitration is not expected to have a material adverse impact on the Group’s financial position for the financial year ending December 31, 2025.