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Jul 1, 2009 12:39 PM

Stolt Tankers BV, a subsidiary of Stolt-Nielsen SA, announced that it canceled a contract with SLS Shipbuilding Co Ltd of South Korea for the construction of hull #474, a 44,000-dwt coated parcel tanker, the second in a series of four ships, citing extended delivery delays.

On March 30, 2009, Stolt Tankers had entered into arbitration with SLS Shipbuilding Co disputing their claim for force majeure to justify delays on hull #474. The ship was originally scheduled for delivery in September 2008. All progress payments to date are covered by bank refund guarantees. This cancellation follows the cancellation of hull #473, the first ship in the series from SLS Shipyard Co on March 18, 2009. The shipyard has disputed the cancellation of hull #473, and the parties entered into arbitration March 26, 2009.