Awilco LNG agrees final settlement over collision

Norway-based shipping firm Awilco LNG has agreed a final settlement over the collision between its LNG carrier WilForce (IMO 9627954) with bulk carrier Western Moscow (IMO 9855410) off Singapore late in May 2019 (IMN June 7th 2019). The WilForce was damaged in a the collision with Nisshin Shipping’s dry-bulk bulk carrier Western Moscow on its way to Singapore, sailing in ballast, on May 30th.

Awilco, the owner of two 156,000-cbm TFDE LNG carriers, announced on December 19th a “full and final settlement agreement” between owners and insurance companies on both sides. According to the settlement agreement, the company will receive about $4.9m as full and final compensation for cost and lost time following the collision.

“As no effects of this claim have been reflected in Awilco LNG’s financial statements the compensation received will be booked as income in the fourth quarter of 2023,” Awilco said. It had announced in May 2022 that it has received the judgement on liability on the case involving the WilForce.

A UK court based in London said that the 2019-built bulk carrier Western Moscow, owned by Ratu Shipping, was mainly responsible for the collision. The court found that the bulk carrier had caused the accident and allocated liability and costs in the ratio 75:25. The combined claims for the damage caused by the collision were about $17.6m. Awilco recently signed a term sheet with an Asian leasing firm to refinance both of the company’s LNG carriers WilForce and WilPride. The firm expected the transaction to close in the first half of 2024.

At the time of the incident 2013-built, Norway-flagged (now Malta-flagged) , 102,315 gt Wilforce was owned by Wilforce LLC care of manager Awilco LNG ASA of Oslo, Norway. It is now owned by Compass Shipping 84 Corp Ltd care of Awilco) It was entered with Gard P&I Club on behalf of Wilforce LLC. Gard AS was claims leader for H&M on behalf of Anders Wilhelmsen & Co. It is now entered with Gard P&I on behalf of Compass Shipping 84 Corp Ltd.

At the time of the incident 2019-built, Panama-flagged (now Philippines-flagged) , 25,189 gt Western Moscow was owned by Sea Queen Shipping Corp (now owned by Panama City-based Ratu Shipping Co SA) care of Nisshin Shipping Co Ltd Nisshin Kaiun KK) of Tokyo, Japan (still the commercial manager). ISM manager is now Victoria Ship management of Manila, Philippines. It is now entered with Steamship Mutual (incepted 21/12/23) on behalf of Sea Queen Shipping Corp.