Cosco Bulk Carriers has prevailed in a ‘wash out’ dispute with Pioneer Freight Futures but as the latter is in liquidation the Chinese shipowner may have difficulty collecting the award.

Pioneer claimed $16.5m from Cosco to resolve credits and debits payable under a series of eleven forward freight agreements (FFAs) made between January 2007 and August 2008.

But Cosco resisted the claim and London High Court judge Justice Flaux has endorsed a set-off calculation that ends with a balance due to the Chinese shipowner of $7.5m.

At the centre of the dispute was how the ‘wash out’ of FFA contracts should be affected by Pioneer going into liquidation in December 2009 so bringing about automatic early termination of the deals under the...