0

Pearl Mist Update

Pearl Seas Cruises appears to have accepted the ship Pearl Mist.

A statement on the Pearl Seas Website states:
“Pearl Mist left the shipyard in Canada on Saturday, April 13th. The ship is scheduled to arrive at Chesapeake Shipbuilding in the United States on April 17, 2013 for outfitting before going into service in the Spring of 2014”

Pearl Mist was built by Irving Shipbuilding, but on completion was rejected. the case went through the courts, and in the end was subject to a the contracts arbitration clause which found for Irving Shipbuilding.

Full Coverage of Pearl Mist

0

Whats Up with Pearl Mist?

Shes Tied up at Shelbourn ship repair, waiting for Lawers to sort things out.
First Some Background.
ISI finished construction of the Vessel in April 2009, conducted dock–and–sea trials,
and on May 6, 2009 gave Pearl Seas written notice of completion of the trial run. During Consrtuction there were several changes made to the vessel design, and these were likely the source, at least in part, of the construction Delays. On May 9 Pearl Seas rejected the Vessel, aruging it is not compliant with the contract, that “would materially interfere with the operation of the Vessel.

The Contract contained an Arbitration Clause. During and after construction of the Vessel, Irving Shipbuilding and Pearl Seas repeatedly disagreed about the terms of the Contract and each other’s performance. They convened an arbitral panel to which they have submitted their numerous disputes. Perl Seas have sited several issues, including Late Delivery and deficencies (70 issues were identified, 17 of which were “[t]he most serious defects.”) including cosmetic or minor construction defects, failure to install certain Contract items, excessive noise and vibration (of HVAC), and failure to install shower stalls. As well, The Flag State Determined that the condition of ‘Pearl Mist’ is not to a standard acceptable for registration, and Pearl Seas argued the vessel was not in complicance with USCG Regulations. For these reasons, Pearl seas Terminiated the contract.

Irving Shipbuilding argued it was not in default because none of the non–regulatory defects rose to the level of a failure to perform a material requirement
of the contract, and that USCG requires that the owner of a ship must be part of the certification process, and that the “vessel must be crewed, in order to carry out the Training and Drills tests”

The arbitrator agreed with Irving, and and Pearl Seas Sued Irving in Connecticut Court to dismiss the arbitrators Verdict. In both cases the Case was dismissed. So Where does this Leave the Pearl Mist? Likely In the Arbitation Panels hands. At this point it appears that Pearl Seas will be held to the contract – though will likely recive some compensation for the deficencies (which is capped at 2 million dollars or so)

For the Rullings, See:

http://02ec4c5.netsolhost.com/blog/wp-content/uploads/2011/04/Pearl-Seas-2.9.11.pdf
http://docs.justia.com/cases/federal/district-courts/connecticut/ctdce/3:2010cv01294/90364/51/0.pdf?1297340424

2

Shelburne Ship Repair

Shelburne ship repair is another Irving yard ( Halifax Shipyard, St John Shipbuilding (NB), and East Isle (PEI) are the Others). The Yard is currently the home of the Pearl Mist. Built at Halifax Shipyards, her delivery was refused by the Pearl Seas Cruises for defecnies, inculding not meeting standards of various vessel Licencing Authorities, including the USCG and the Flag State (Marshal Islands). The Flag state issues are contractual and apparently trivial to resolve. The USCG Issues are outside the contract, and actully require the vessel to be turned over and crewed by the owner prior to certification.

The yard recently began several million in repairs and upgrades, including a new Marine Railway seen here:

0

Halifax Shipyard News

Pearl Mist
A lawsuit has been filed against Irving Shipbuilding over Pearl Mist. It would appear that the construction is not compliant with The Class society or the Flag State (Marshall Islands) standards, and so the vessel cannot be registered. An Arbitration panel has rulled that the vessel was complete and ready for delivery.

Pearl Mist is currently laid up at the Irving faclity in Shelbourne.

Crane Accident
Seems The shipyard flipped a crane, and dunked a forklift, while attempting to place it on the ferry Holiday Island. No Injuries (other than egos) are reported.


From the Chronicle Herald

0

news bits

Melfi Marine to drop Hailfax port for Montreal
After almost 16 years Melfi Marine is dropping Halifax as a port of call in favour the Port of Montreal.

Cruise season over for Halifax-built ship
Pearl Seas Cruises said it had to cancel the remainder of the 2009 Eastern Canadian and St. Lawrence Seaway cruises because of deficiencies with the Pearl Mist recently discovered during sea trials, quality issues and construction delays.

Picton Castle’s odyssey over
The Picton Castle returned to Lunenburg at Saturday after completing its circumnavigation of the Atlantic Ocean