China: Shagang Shipping Delays Payment to Foreign Shipowner

The shipping unit of Chinese steelmaker, Jiangsu Shagang Group, is the latest among a considerable number of Chinese maritime firms that have postponed payments to foreign shipowners in the past year, Reuters reports.

Shagang Shipping has for months delayed payments for the use of a large iron ore carrier owned by Diana Shipping resulting in more than $3 million in outstanding debt. This is also the longest recorded period without payment.

According to a senior Shagang Shipping official the company owes Diana Shipping money but not as much as $3 million. He however added that the company intends to pay but extra time is needed to obtain the necessary financing.

[mappress]

World Maritime News Staff, January 5, 2012; Image: Diana Shipping