Stolt-Nielsen subsidiary Stolt Tankers has cancelled another chemical tanker order with South Korea’s SLS Shipbuilding after the yard failed to meet delivery deadlines.
Two vessels from a four-ship order of 44,000 dwt coated parcel tankers that would be used for transporting petrochemicals have now been cancelled.
SLS is still building the two other tankers but had claimed force majeure over the failure to deliver the first two.
Stolt Nielsen chief financial officer Jan Engelhardtsen said the yard had production problems that had affected other ship construction orders.
He said delivery of the remaining two 44,000 dwt coated parcel tankers would also be delayed.
“This is the first time we ordered ships from SLS. It is clear SLS was experiencing production problems.
We would like to see that the yard would be able to sort out these problems,” Mr Engelhardtsen said.
He said all the progress payments made to date to SLS were covered by bank refund guarantees.
Stolt Tankers and SLS entered arbitration in March after SLS disputed the cancellation of the first vessel.
Mr Engelhardtsen said the four tankers were to be used in joint venture with Dubai-based Gulf Navigation, which also had two ships on order from SLS.
Stolt Tankers also had eight stainless steel, 43,000 dwt tankers on order from SLS that were due for delivery in 2011, Mr Engelhardtsen said.s
He said these tankers would be delivered in 2011, 2012 and 2013, and would be used to transport specialised chemicals, including caustic substances.
Two vessels from a four-ship order of 44,000 dwt coated parcel tankers that would be used for transporting petrochemicals have now been cancelled.
SLS is still building the two other tankers but had claimed force majeure over the failure to deliver the first two.
Stolt Nielsen chief financial officer Jan Engelhardtsen said the yard had production problems that had affected other ship construction orders.
He said delivery of the remaining two 44,000 dwt coated parcel tankers would also be delayed.
“This is the first time we ordered ships from SLS. It is clear SLS was experiencing production problems.
We would like to see that the yard would be able to sort out these problems,” Mr Engelhardtsen said.
He said all the progress payments made to date to SLS were covered by bank refund guarantees.
Stolt Tankers and SLS entered arbitration in March after SLS disputed the cancellation of the first vessel.
Mr Engelhardtsen said the four tankers were to be used in joint venture with Dubai-based Gulf Navigation, which also had two ships on order from SLS.
Stolt Tankers also had eight stainless steel, 43,000 dwt tankers on order from SLS that were due for delivery in 2011, Mr Engelhardtsen said.s
He said these tankers would be delivered in 2011, 2012 and 2013, and would be used to transport specialised chemicals, including caustic substances.