Chinese cargo ship arrested in Happy Valley-Goose Bay over alleged outstanding payments

A Chinese cargo ship docked in Happy Valley-Goose Bay has been arrested and ordered not to leave port until further notice.

The Federal Court issued an arrest warrant Thursday for the Qian Kun, a cargo vessel registered in Shanghai. It was tasked with transporting wood cut from the Muskrat Falls construction site to Asia.

The warrant was filed in Halifax after Miller Shipping, a marine contractor based in St. John's, alleged in a statement of claim it was not fully paid for its work, with more than $255,000 outstanding for services it provided. 

In the court documents, Miller Shipping says around Nov. 22, it provided loading, stevedoring and other services needed to transfer the wood onto the Qian Kun.

Miller Shipping said it issued five invoices to J.P. Forestry — a wood supplier from Corner Brook — between Nov. 8 and Nov. 25 ranging from about $9,000 to $140,000 for rigging equipment, rentals, two work crews, a surveyor travel, and meals. 

The company says J.P. Forestry made one payment for $90,000 on Nov. 19th, but despite repeated demands Miller Shipping claims the remainder of the money hasn't been paid. The outstanding total is $255,089.50.

Chipolbrok Sun Maritime, owners of the Qian Kun are also named in the warrant.

Miller Shipping says they expect to provide additional services to the defendants, which will become due before the ship departs Happy Valley-Goose Bay.

They want the defendants to pay the outstanding amount, all action costs and interest on overdue amounts. If the payments are defaulted, Miller Shipping also wants the court to issue an order for the appraisal and sale of the Qian Kun.

J.P. Forestry had previously reached an agreement with the Innu Nation to sell timber leftover from the Muskrat Falls construction site.

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