Aluminium Bahrain (Alba), one of the world’s leading smelters, has re-established its trade relations with Norwegian shipping group Torvald Klaveness with the sealing of a long-term freight contract.

The deal follows a settlement agreement between Alba and Torvald Klaveness Shipping, whereby each party agreed to waive their respective legal claims related to previous cases.

A major freight carrier, Torvald Klaveness operates more than 100 vessels that carry some 40 million tons of cargo per year.

Alba said as per the new long-term commercial freight contract, Torvald Klaveness will deliver alumina to its base through the company's subsidiary Cabu Chartering.

Torvald Klaveness said in February 2013, the company, through its subsidiary Cabu Chartering, had started arbitration in London against Alba claiming compensation for economic loss incurred as a result of alleged breach of a freight contract from 2008.

Alba in turn commenced proceedings against Klaveness at Oslo District Court seeking compensation for alleged overbilling in connection with a previous freight agreement negotiated through a broker, said the Norwegian firm.

But with this agreement, both the firms have now decided to waive off their respective legal claims.

Commenting on the agreement, chairman Mahmood Hashim Al Kooheji said: "We are pleased to have reached a settlement with Klaveness and resume normal business relations. Klaveness had been a major freight carrier for Alba in the past and is a well-respected shipping company in the industry."

"We welcome them back as one of our key freight carriers for alumina," he added.-TradeArabia News Service