Capital Ship Management Corp. announced that the M/T Andronikos (ex ‘Anbar’) was promptly released from arrest in Singapore after the Owners’ P&I Club posted security and has resumed trading.

As previously disclosed, the M/T Andronikos, together with an additional five vessels, were redelivered after Al-Iraqia Shipping Services & Oil Trading (‘AISSOT’ or ‘Charterers’) gave notice of termination of the bareboat charters for those vessels on 22 February 2020 in what were then dire spot market conditions.  At the time AISSOT terminated the charter, the M/T Andronikos had approximately another six years duration remaining under that bareboat charterparty.

At the time of the termination, the charter rates published by established shipbrokers for a five year time charter, adjusted for bareboat business by excluding OPEX, were below the rate under the relevant charter party, demonstrating that at the time of redelivery AISSOT had suffered no damages, and they were instead hoping to make a gain by redelivering the vessels. However, in its evidence before the Singapore court, AISSOT presented rates which it described as a ‘Fearnleys Bareboat Charter Assessment’, which were not only misleading, but also transpired to be just informal email correspondence between an AISSOT executive and a Fearnleys AS shipbroker, and which were used in court proceedings without Fearnleys AS prior knowledge or authority.

The Owners of M/T ANDRONIKOS wish to advise that, having promptly obtained the release of the vessel, they shall now pursue appropriate sanctions against AISSOT and its relevant executives.

Owners choose to once again publicly inform the market of the above in order for market players to have a better understanding of the situation and leave it to the market to assess AISSOT’s performance and tactics.