Yangzijiang Shipbuilding, a major Chinese shipbuilder, is currently embroiled in a $835 million arbitration case in London, concerning the cancellation of 10 vessel orders valued at approximately $900 million. The arbitration involves Yangzijiang's subsidiaries—Jiangsu Tianchen Marine Import & Export, Jiangsu Yangzi Xinfu Shipbuilding, and Jiangsu New Yangzi Shipbuilding. These orders were placed in late 2021, and the claimants terminated the contracts in March and May 2022. The proceedings, which began in June and September, are focused on claims for loss of profits and refunds of initial payments.
While the company has not disclosed the identity of the claimants, Xinde Maritime News has learned through exclusive insights that these disputes may be closely tied to the well-known Greek shipowner Costamare Inc.. Costamare had placed significant orders for container ships in late 2021, including four 13,000 TEU vessels and four 15,000 TEU vessels with a yet-to-be-confirmed Asian shipyard, widely speculated to be Yangzijiang. The company later canceled these orders, citing various market and cost-related challenges.
Costamare's abrupt cancellation of these orders,（2 in March2022 and 6 in May 2022）, adds a layer of complexity to the case. Rising newbuild prices, inflationary pressures, and delays in the shipbuilding schedule are believed to have played a key role in this decision. According to industry sources,in that time Costamare’s actions reflect a broader trend in the shipping industry, where escalating costs and delivery issues are straining shipowner-shipyard relationships.
Yangzijiang Shipbuilding, however, is preparing a robust defense. The company's legal advisers have stated that the claims are unfounded and have been inflated significantly. The first tranche of arbitration hearings is set to take place in November 2024.
As Xinde Maritime News exclusively understands, the involvement of Costamare in this arbitration adds significant weight to the case, making it a focal point for both the shipping and legal communities. The outcome of this arbitration could have far-reaching implications for the global shipbuilding market and future contractual relations.
by Xinde Marine News Chen Yang
by Xinde Marine News Chen Yang
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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