While it is expected that there will be a legal fight between Hong Kong-based bulker operator Ocean Longevity Shipping & Management and China’s large privately-owned China Rongsheng Heavy Industries Group Holdings Limited since Rongsheng's construction of very large ore carriers (VLOCs), which were awarded from the Hong Kong operator, has been delayed, it turned out that the operator will not take any legal actions.

According to TradeWinds, Ocean Longevity will not make an arbitration claim against the Chinese builder since it does not expect that it would recoup its legal expenses through an award against the yard which has been in financial difficulty.

Rongsheng won up to six 250,000 dwt VLOCs (including three options) from the operator in December last year. However, it failed to secure Refund Guarantee (R/G) that the contract has not become effective while the whole construction process also has been delayed. Finally, the contract was canceled.

Meanwhile, the yard announced its results, which has been accumulated the first nine months of this year, last October. The yard posted CNY 2.778bn (around $450m) of operating loss and CNY 3.362bn of total loss as well as net loss, identically.