The owner of the 53,609 dwt Supramax bulk carrier Paguera (shown above) and the disponent owner of the 51,215 dwt Papillon have withdrawn their ships from long-term time charters with Emirates Trading Agency LLC (ETA), a company registered in Dubai. ETA is said to owe more than US$10 million to Bremen-based HARPA Bulk Shipping & Management GmbH & Co. KG, which manages both ships.
According to HARPA, ETA had repeatedly failed to pay due hire in time and then defaulted completely as of early July 2010. This was despite the owners having shown considerable flexibility in accommodating the charterer’s alleged cash flow problems following the downturn of the shipping market in 2008 and thereafter. The owners of both vessels have sought remedy in London arbitration. The arbitration tribunal decided in the owners’ favour and awarded in excess of US$10 million of outstanding hire. HARPA claims that ETA has still not honoured these awards. (contributed article)
