Vinalines Global, a ship owned by state-run Vietnam National Shipping Lines (Vinalines), is being detained in China due to a trade dispute, Vinalines general director Nguyen Canh Viet confirmed, VNE reports.
It is a dry cargo ship that has a tonnage of 73.350 DWT, the largest in Vietnam. It has been put into operation since 2008.
The Chinese side will release the ship if Vinalines pays it US$800,000 as compensation, Viet said.
Vinalines did not reveal when the ship was detained.
Vinalines has leased this cargo ship to an Indian company under a lease contract.
At the end of last month, as the Indian partner failed to pay rent to Vinalines, the Corporation’s Ho Chi Minh City branch issued a notice to detain all the cargos on the ship.
However, those cargoes were owned by a third party, which is a Chinese company that had paid transport fee to the Indian company.
The problem was brought to a Chinese court, which judged on April 8 that Vinalines was wrong in detaining the goods and had to pay $800,000 as damages to the Chinese company by April 15.
If Vinalines fails to pay the damages, the court will sell the ship to ensure execution of its verdict.
Earlier, the Chinese company claimed a compensation of $1.8 million.
Le Dinh Thanh, director of the HCMC branch of Vinalines, said the company is negotiating with the Chinese company on lowering the compensation.
It is a dry cargo ship that has a tonnage of 73.350 DWT, the largest in Vietnam. It has been put into operation since 2008.
The Chinese side will release the ship if Vinalines pays it US$800,000 as compensation, Viet said.
Vinalines did not reveal when the ship was detained.
Vinalines has leased this cargo ship to an Indian company under a lease contract.
At the end of last month, as the Indian partner failed to pay rent to Vinalines, the Corporation’s Ho Chi Minh City branch issued a notice to detain all the cargos on the ship.
However, those cargoes were owned by a third party, which is a Chinese company that had paid transport fee to the Indian company.
The problem was brought to a Chinese court, which judged on April 8 that Vinalines was wrong in detaining the goods and had to pay $800,000 as damages to the Chinese company by April 15.
If Vinalines fails to pay the damages, the court will sell the ship to ensure execution of its verdict.
Earlier, the Chinese company claimed a compensation of $1.8 million.
Le Dinh Thanh, director of the HCMC branch of Vinalines, said the company is negotiating with the Chinese company on lowering the compensation.