Following collision damage, which necessitated a visit to a Singapore shipyard, ‘WilForce’s’ charterer has advised Awilco LNG that it will cancel the remaining charter period.
‘WilForce’ currently remains at the yard for hull repairs, which are progressing as planned. They are expected to be completed by end-August/early September, Awilco said.The costs are covered by insurance.
When she was allegedly struck by another vessel, ‘WilForce’ was employed on a nine to 12 month timecharter, which commenced in September, 2018.
The charterer notified Awilco LNG of its decision, due to the prolonged off-hire period required to repair the vessel in accordance with the c/p terms.
She has loss of hire insurance in line with market rate levels, which will compensate for most of the lost timecharter hire.
Awilco stressed that based on a preliminary assessment of the facts, the company held the other vessel fully and completely liable for the collision, and expects to be able to recover all costs and expenses, including insurance deductibles, off-hire and lost timecharter hire in due course.
‘WilForce’ is expected to be available for charter ahead of the seasonally stronger Northern Hemisphere winter period, the company added.
Awilco also said that it foresaw the chartering market tightening during the fourth quarter of this year on the back of newbuilding deliveries tapering off in the second half of 2019, coupled with most of the new LNG production capacity scheduled for start up in 2019 being commissioned in the second half of the year and increased demand ahead of winter.
This view was supported by the current soft rates for prompt vessels, compared to higher rates obtainable for contracts starting in 4Q19, Awilco claimed.