EMEA News
OW Bunker Collapse Seeing Competing International Claims, Threat of Multiple Arrests for Ships
Last November's collapse of OW Bunker has given rise to numerous competing claims for outstanding bunker bills with ships at risk of multiple arrests, while owners are left unsure of who to pay, an UAE maritime magazine reports.
"Numerous competing payment demands from ship owners, financiers, banks, suppliers and traders on OW Bunker Middle East has made them hesitant to pay out, due to jurisdictional issues and legal interpretations," wrote lawyers for Fichte & Co Legal Consultancy (Fichte).
According to Fichte, the only party who should be able to bring a valid claim against a shipowner for outstanding payment in the UAE is the holder of the bunker delivery note (BDN).
"No other contractual document in the wider commercial matrix demonstrates title to the fuel supplied like the BDN does," wrote Fichte.
However, the same is not true in other jurisdictions, meaning that differing legal jurisdictions may uphold different claims for the same payment.
"This may create tremendous commercial pressure on an innocent ship owner who would have already paid the actual physical supplier, leading to depositing a security to release the vessel and await the decision of the Court," wrote Fichte.
According to the lawyers, a Letter of Indemnity could be a useful tool when shipowners are settling claims.
Under the process the owed party would indemnify the shipowner against competing claims for the same delivery.
But, while in theory there is no cost attached the owed party may demand a premium on settlement for taking on additional risk, and the letter may will not stop competing claimants arresting ships in ports around the world.
In December, Overseas Shipholding Group (OSG) joined a growing list of shippers that have appealed to courts around the world for guidance as to who should be paid for bunkers delivered under contracts with OW Bunker before its collapse.
