Hunter Group, a Norwegian shipping firm, is facing an escalating payment dispute with an unnamed long-term charterer, resulting in an unpaid hire bill for its Very Large Crude Carriers (VLCCs) now totaling $55 million. The charterer has consistently paid less than the contracted amount, with the latest shortfall for August bringing the total to this significant sum. Earlier reports indicated an $11.8 million underpayment for August alone, following a previous total of $17.84 million for March and April.
The dispute began with an $8.3 million shortfall in March, followed by an additional $9.22 million underpayment in April. Hunter Group's management, including CEO Erik M Mathiesen, asserts that the counterparty has no valid basis for these reduced payments and considers it a breach of contract. The company is actively pursuing all necessary legal steps to protect its contractual rights.
Despite the significant underpayments, Hunter Group had recorded net time charter earnings of approximately $24.8 million for April, though a substantial portion remained outstanding due to the dispute. This situation coincides with a management transition at Hunter Group, as Morten Hammer was appointed interim chief executive earlier in the month to ensure operational continuity while the company addresses this charter dispute and broader strategic matters.
Meanwhile, the broader oil tanker market has seen fluctuations. VLCC earnings recently plunged by $200,000 as more ships became willing to enter the Strait of Hormuz, with daily earnings for a Saudi Arabia to China route dropping from over $514,000 to $287,000. However, the VLCC market is currently trending higher, with rates for routes like the Middle East Gulf to China reaching around $704,000 per day in round-trip time charter equivalent. Vitol Group also noted increasing flows through the Strait of Hormuz, with daily shipments totaling about 10 million barrels, 9 million of which are crude.
