Bulk carrier arrested over fistfuls of unpaid bills

RAY SMUTS WHAT WAS merely intended as a stop-over to take on supplies at Cape Town may well entail a longer lay-over for the 152 056 dwt Capesize bulk carrier, Orient Alliance, under arrest over several fistfuls of allegedly unpaid bills. With at least 35 third-party supplier creditors baying for their money, a princely sum, Cape Town’s deputy sheriff Johan Engelbrecht resorted to two modes of transport to reach the vessel which, with a draught of 16 metres, is too big to enter the port. First, on May 12, he boarded a motorised launch to reach the vessel lying about eight miles west of Green Point on the Atlantic Seaboard, placing her under arrest at around 21:00 hours. Then, as further bills were submitted, he flew by helicopter on the afternoon of May 16 to effect a second arrest on the 16-year-old vessel. Asked how many claims were at issue, Engelbrecht commented: “There’s a lot, I can’t keep track of all the amounts being claimed but we are definitely talking millions.” The ship is unable to go anywhere for now as Engelbrecht has removed all relevant documentation, such as registration and safety certificates, precluding her from entering any port. What is more, port control has the Orient Alliance under radar surveillance and the port’s water wing or navy could always be called upon in the highly unlikely event of her trying to make a run for it. Fortunately, the huge vessel is not costing the Sheriff a cent at this stage, unlike the Russian fleet replenishment vessel Argun, which spent more than six years in the port of Cape Town, running up huge preservation and legal costs in the process. Matthew Ash, a director of Deneys Reitz Attorneys in Cape Town, is representing the interests of creditors but declined to speak to FTW last week. The four-year-old Orient Steamship, owned by rising shipping star John Koo, faces at least 35 claims for alleged non-payment of bills relating to the Orient Alliance – out of drydock recently – and the 1986-built, 146 357 dwt, Orient Brilliance. FTW understands that there are however no plans to arrest the latter, due for Chinese drydocking after being holed four times while departing San Nicholas, Peru, at the end of August last year. This costly accident apparently left Orient Steamship with a revenue shortfall of US$2.5 million as there was no loss-of-hire insurance. Under South African court procedures, Orient Steamship can pay the claimants, put up security guaranteeing claims will be paid or contest them. Laden with a cargo of iron ore, The Orient Alliance was on a voyage from Australia to Britain via South Africa - considered to be one of the most liberal jurisdictions in which to arrest ships - when the deputy sheriff came calling.