A United States federal court has directed Standard Chartered Bank in New York to transfer $6.21 million belonging to Polaris Bank Limited to Danish shipping company Norden. This directive follows a settlement between the Nigerian lender and the shipping firm after months of litigation over outstanding freight payments and other charges arising from the transportation of gypsum to Nigeria. The court order was issued on November 5, 2026.
The dispute originated from a shipping arrangement involving 27,000 metric tonnes of gypsum transported from Safi, Morocco, to Lagos in 2021. The consignment was supplied by Gypse Expo and purchased by Quattro Marine and Petrochemical Nigeria Limited for resale to Lafarge Africa Plc. Polaris Bank participated in the transaction by providing financing through a letter of credit. The shipping agreement, executed on June 28, 2021, stipulated a freight rate of $39.95 per metric tonne and demurrage charges of $35,000 daily for delays at port.
Disagreements emerged over freight obligations and charges associated with delays at various ports, resulting in claims that substantially exceeded the original transportation cost. Norden commenced arbitration proceedings against Polaris Bank in London around May 6, 2022. On March 30, 2026, the arbitral tribunal issued a final partial award requiring Polaris Bank to pay Norden $1,052,692.50 in outstanding freight, with interest accruing at five per cent annually, compounded quarterly, from September 25, 2021.
Norden maintained additional claims exceeding $4.2 million, including charges for delays at the loading port, discharge operations in Lagos, and Calabar, as well as other disputed amounts covering additional freight, war-risk insurance premiums, security-related expenses, and compensation for loss of vessel hire. The overall claims accounted for an earlier payment of $400,000. Unable to secure payment of the arbitration award, Norden approached the Southern District of New York on June 22, 2026, seeking judicial intervention against funds belonging to Polaris Bank within the United States banking system.
The court authorised maritime attachment and garnishment against Polaris Bank’s assets, permitting the seizure of funds held through Standard Chartered Bank in New York up to $6.001 million. The attached money was to remain under judicial control pending further instructions. Polaris Bank received several procedural extensions to respond to Norden’s complaint but did not submit a formal answer to the substantive allegations before the parties settled.
The case moved towards resolution in October after the court received notification that Norden and Polaris Bank had reached an agreement in principle. On November 5, 2026, the court issued an order directing Standard Chartered Bank to transfer exactly $6,214,196.08 to an account nominated by Norden. Upon completion of the payment, the judicial restrictions affecting Polaris Bank’s assets held by Standard Chartered and other garnishee institutions were to be discharged.
The settlement exceeds the original freight award by more than $5 million and resolves months of litigation. Although the proceedings were dismissed with prejudice, Norden retained the right to return to court to enforce the settlement if Polaris Bank failed to comply. The court further directed that Standard Chartered be released from its obligations as garnishee, while each party would bear its own litigation expenses.
Key points
- The US court ordered Polaris Bank to pay $6.21 million to Norden from frozen assets in Standard Chartered Bank.
- The dispute originated from a 2021 cargo shipment of gypsum from Safi, Morocco, to Lagos, Nigeria.
- The settlement resolves months of litigation and exceeds the original freight award by more than $5 million.
