The CMA CGM Bizet, a 6,600-TEU container vessel, was held in Busan for less than 48 hours from Oct. 18, a CMA CGM spokesman told American Shipper Friday.
'This relates to a long-standing issue with Hyundai Mipo (shipyard), concerning the contracts for vessels which Hyundai built in 2004,' the line said in an e-mail to American Shipper.
European news outlets this summer reported that CMA CGM has an ongoing dispute with the Korean Exim Bank over the bank's insistence that CMA CGM pay more money for ships it financed from unspecified South Korean shipyards. The bank is arguing that the value of the ships is lower today than when the loan was agreed.
The vessels are reportedly ready for delivery but have been refused by the French carrier over the financial dispute. The line is likely not in any hurry to take delivery of the ships, with overcapacity a problem in every major trade.
However, the CMA CGM spokesman said the detention of the Bizet was not related to that dispute.
'The issue (with Hyundai Mipo shipyard) has been the subject of disagreement since 2005, and has nothing to do with discussions with any banks or other parties,' the line said. 'The issue between the parties involved has since been settled.'
CMA CGM didn't specify what the dispute (nor the resolution that led to the ship being released) entailed. According to several online litigation and arbitration informational sites, the carrier has been involved in a complex court case with Hyundai Mipo involving four vessels that were originally constructed under a contract with an entity only defined as 'ERS,' a contract that CMA CGM later assumed.
The line didn't respond to enquiries seeking clarification. It also did not specify from which port the Bizet traveled, nor to which port it was headed after leaving Busan, nor why it was in Busan.
According to the carrier's Web site, the ship is deployed on its Epic service which links Europe with ports in the Middle East, Pakistan and India. The service does not call at any Asian ports east of Mumbai. However, according to ComPair Data, the Bizet is no longer deployed on that service, and is instead on the Maersk Line-Safmarine-CMA CGM AE3/BEX service. ComPair Data shows the Epic service being operated with eight vessels, while the CMA CGM Web site has it being operated with 10 vessels, including the Bizet.
Adding further to the intrigue, a spokesperson for the Busan Port Authority told American Shipper Monday that it had no information on the situation and couldn’t confirm that a vessel had been detained.
The Bizet was delivered in 2001 and built in a Hanjin shipyard, a compatriot yard to Hyundai.
