APL, Scan-Shipping splitting up

APL, Scan-Shipping splitting up APL Co. Pte. Ltd. and Scan-Shipping A/S are headed toward what could become a lengthy legal battle over the recent breakup of a joint venture between the two companies in Scandinavia.
   Through the joint venture, formed in 2001, Scan-Shipping acted as APL’s agent in Denmark, Norway, Sweden and Finland. Scan-Shipping had served APL, previously NOL, in the four countries since 1969.
   The joint venture’s demise stems from disputes between Scan-Shipping and APL, whereby APL changed the remuneration agreement in disfavor of existing agreements, according to a source familiar with the breakup. APL owned a 60 percent share in the joint venture, while Scan-Shipping held the other 40 percent.
   The source, who requested anonymity, said APL decided to terminate the operation, effective April 1, and has offered current employees of the joint venture positions in all four countries.
   Scan-Shipping opposed the breakup of the joint venture, and is pursuing legal action against APL. A hearing is scheduled before the High Court of Justice, Queens Bench Division, Commercial Court in London on March 18.