Panamanian cargo ship detained at Vietnam port over alleged $300,000 goods damage

The People’s Court of Gia Lai Region 1 on Thursday confirmed that it had coordinated with the regional People’s Procuracy to execute its decision to detain the Panamanian vessel in connection with a complaint from PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo).

The detention decision has been forwarded to the Quy Nhon Port Authority and other relevant agencies for enforcement.

According to the court, the action followed a petition filed by PVFCCo on October 6, requesting the ship’s detention to resolve an alleged cargo damage claim.

The company, which owns a shipment of 8,800 metric tons of ammonium sulfate fertilizer purchased from Samsung C&T Singapore Pte. Ltd., contracted the Zhi Ying Chang Shun to transport the cargo from a port in China to Quy Nhon Port.

When the ship arrived at Quy Nhon on October 1 to unload the cargo, the consignee discovered that part of the fertilizer stored in hold No. 2 had been contaminated.

The following day, during unloading, the hatch cover was reportedly closed late, leaving the fertilizer in holds No. 1, 2, and 3 wet for about 25 minutes.

PVFCCo estimated the total loss at up to $300,000.

After reviewing the petition, the court determined that there were sufficient grounds to apply an emergency interim measure to prevent the ship from leaving port.

The detention order allows the vessel to be held for up to 30 days.

In addition, the court froze VND30 billion ($1.14 million) belonging to PVFCCo until further notice.