COSCO ship seized for no payment

CHINA COSCO HOLDINGS   SHIPPING

Singapore - The local maritime authorities has confiscated a China COSCO Holdings ship for failing to pay for its charter services, according to the company.

The carrier Song Shan Hai is a 74,000-tonne bulk vessel COSCO chartered out to a company which failed to abide by its contract, a Hong Kong-based COSCO Holdings official said in a report by Reuters.

The unidentified company did not pay the $1 million charged for the usage of the ship, leading to the impoundment.

Asia Legal's Wendy Leong, counsel of COSCO's unidentified company, revealed the ship would be held by Singapore's Supreme Court until the dispute was resolved.

Two other COSCO vessels were previously impounded after it stopped making payments to sever shipowners, souring the relationship with several maritime companies.

COSCO had resolved its payment disputes by reducing a large portion of its charter costs, the article stated.

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