Report: Essar Shipping Wins Arbitration Case against SAIL

Essar Shipping Indian shipping corporation Essar Shipping Limited has reportedly won an arbitration case against the Steel Authority of India Limited (SAIL). In accordance with the ruling, SAIL is requested to pay Rs 323 crore (USD 48 million) in damages to Essar Shipping for termination of contract relating to coal transportation, the Economic Times reports citing company officials. Namely, under the contract signed in 2007, Essar Shipping was hired to transport 3 million tonnes of cooking coal from Queensland, Australia to Indian ports. As disclosed, the contract was renegotiated in 2011, only to be terminated shortly after with SAIL resorting to the spot market cargoes. The National Stock Exchange of India Limited has sought clarification from both Essar and SAIL with respect to recent media report. In this regard, exchange have advised the companies to provide clarification/confirmation on the news item in detail including the following: Whether you/company are aware of any information that has not been announced to the exchanges which could explain the aforesaid movement in the trading. The response from the company is awaited, the exchange said. Neither of the companies have confirmed the news to the stock exchange yet. World Maritime News Staff