Vessel Arrested Over Unpaid Replacement Bunkers

The case has been brought by Monjasa against a Philippines-flagged cargo vessel

Yet another case of unpaid bunkers has resulted in a vessel arrest, this time involving Philippines-flagged cargo vessel M/V Kinatsi, which plaintiff Monjasa of Denmark supplied bunkers too last year, some of which it then had to replace.

The dispute, which was filed earlier this month with the United States District Court, Middle District of Florida, Tampa Division, arose after Monjassa sold 150 metric tonnes (mt) of IFO bunkers and 50 mt of MGO to charterer Tami Project Inc. of Liberia in October of 2015, for prices of $33,751.35 and $55,751.79 respectively.

While the parties agreed for payment to be made within 45 days, Tami (which had requested the bunkers) failed to follow through, and instead raised a dispute over the quality of some of the bunkers.

Around January 20 of this year Monjasa then agreed to remove and replace the IFO supplied to the vessel on a strictly without prejudice basis, credited the original IFO stem, and then invoiced Tami $33,210 for the new bunkers.

Of this sum, Monjasa claims $23,357 is still outstanding, with Tami said to have made only a partial payment.

With interest this amounts to $27,235.29 – which is the amount the company is seeking in court.

An arrest warrant was served by the court for the M/V Kinatsi on April 22.

Documents submitted by Monjasa to support its claim include the company’s terms and conditions, which states that it reserves the right to pursue all legal remedies available to recover outstanding debt, including the right to impose a maritime lien on vessels until payment and interest has been received.

So far 2016 has not been the best year for physical suppliers when it comes to U.S. court decisions.

As Adrian Tolson, Senior Partner, 20|20 Marine Energy told Ship & Bunker earlier this month, two recent court decisions in the U.S. resulting in physical bunker suppliers failing to have their maritime lien upheld, could have significant implications on both financing and credit decisions within the bunker industry.