- Capital Product Partners Adds MR Product Tanker
Stakeholders in the ports industry have called for an out of court settlement in the case between the Nigerian Shippers’ Council, NSC, and the Seaport Terminal Operators Association of Nigeria, STOAN.
The STOAN and Association Shipping Lines Agencies (ASLA had taken the Council to court following its decision to reverse storage charges collected by the terminal operators and for increasing free storage days at the seaports from three to seven.
Similarly, ASLA had also gone to court to stop the Ports Regulator from reducing their shipping line agency charges (SLAC) and refund container deposits within 10 days.
Both terminal operators and the shipping lines had questioned the powers of the Ports Regulator to carry out such action.
But Justice Ibrahim Buba of the Federal High Court Ikoyi had in December 17, 2014, given judgement in favour of the NSC, upholding its appointment as the ports economic regulator for the ports industry and affirming its decision on the charges.
Dissatisfied with the judgment, members of STOAN and SLAC had gone to the Appeal Court soon after the ruling of the lower court.
However, maritime industry stakeholders, drawn from the freight forwarding profession and maritime lawyers weekend said the way out was for the three parties in the case to embrace an out of court settlement.
They argued that this was for the good of all the parties and for the benefit of the Nigerian economy which is currently facing recession.
Former President of the National Association of Government Approved Freight Forwarders, NAGAFF, Dr. Eugene Nweke, said alternative dispute resolution or out of court settlement was better for the industry and the national economy.
Noting that court settlement would have been good as a precedent, Nweke said this would take time to achieve as the court would need time to study the case before justice can be expected.
He called on all the parties, including the ports economic regulator, STOAN and ASLA, to consider reaching a compromise as part of the out of court settlement.
Nweke argued that such out of court settlement was desirable considering that the issues involved were those bordering on international trade.
A maritime lawyer, Mr Emma Ofomata who spoke on the issue also said it was time for the parties in the case to embrace alternative dispute resolution.
“Out of court settlement is encouraged because the court is always willing to address issues between parties, not necessarily to punish a particular person but to achieve amicable resolution of issues. That is the essence of court. In modern day, the court always encourages alternative dispute resolution because the primary objective of the law is for all parties to have their cases resolved”, Ofomata said.
Ofomata said that quick resolution of the case will be of immense benefit to the ports industry and the economy.
“The main problem between them is the issue of cost, they can sit down and settle the matter. What I expect the parties to do is to sit down to determine the actual cost of doing business in Nigeria. If the cost is too high, government could be approached to create an enabling environment to reduce it”, he said.
In the meantime, Greek shipping company Capital Product Partners has purchased the 50,000 dwt eco-type MR product tanker Amor from its sponsor, Capital Maritime & Trading Corp. (Capital Maritime).
The 2015-built tanker, constructed by South Korea’s Samsung Heavy Industries, was acquired for a total consideration of USD 32.8 million on October 24.
Featuring a length of 183 meters and a width of 32.2 meters, Amor is employed under a time charter by Cargill at a gross daily rate of USD 17,500. The Cargill charter started in October 2015 with duration of two years.
Capital Product Partners said that the aggregate consideration for this acquisition consisted of the assumption of a USD 15.8 million term loan under a new credit facility with ING Bank N.V., USD 16 million in cash and an issuance of new common units to Capital Maritime.
The term loan is non-amortizing for a period of two years from the anniversary of the dropdown of Amor with an expected final maturity date in November 2022.
During the third quarter ended September 30, 2016, Capital Product Partners’ net income decreased to USD 11.8 million from USD 13.8 million seen in the same quarter a year earlier.
Total revenues for the third quarter reached USD 60.3 million, a rise of 5% compared to USD 57.6 million during the third quarter of 2015, as a result of the increase in the size of the Partnership’s fleet.
The company also managed to secure time charter contracts for its chemical product tankers Atlantas II and Alkiviadis, which commenced on October 17 and early August, respectively.
Atlantas II was employed on a time charter to Capital Maritime for twelve months at a gross daily rate of USD 13,000. The vessel was previously employed under a bareboat charter to BP Shipping Limited at a gross daily rate of USD 7,250.
Alkiviadis’ time charter with CSSA S.A. (Total S.A.) was extended for an additional 12 months at a gross daily rate of USD 13,300 per day. The earliest charter expiration is in July 2017. The vessel was previously earning a gross daily rate of USD 15,125 per day.
Shipping Day with additional report from World Maritime News
