Stolt-Nielsen cancels tanker order

Stolt-Nielsen S.A. said its Stolt Tankers B.V. subsidiary has cancelled a contract with SLS Shipbuilding Co. Ltd. of South Korea for the construction of a 44,000-deadweight-ton coated parcel tanker, the second in a series of four ships, citing extended delivery delays.
  

Stolt said it entered into arbitration on March 30 with SLS disputing its claim for force majeure to justify delays on the ship, which was originally scheduled for delivery in September 2008. Stolt said progress payments to date are covered by bank refund guarantees.
  

The latest cancellation follows cancellation of the first ship in the series from SLS Shipyard Co. Ltd., on March 18. The shipyard has disputed the cancellation of that ship and the companies are in arbitration.

 

(Source: American Shipper)