World News
OW Bunker "Double Payment" Test Case Granted Expedited Hearing
The UK's Supreme Court has granted an expedited hearing in the so-called UK "test case" on potential double payments by bunker buyers, which resulted from the fallout of the 2014 OW Bunker bankruptcy.
As Ship & Bunker has previously reported, the case involves PST Energy 7 Shipping LLC (PST Shipping), who had contracted with OW Bunker Malta Ltd (OWBM) for bunkers that were physically delivered to its vessel Res Cogitans by a subsidiary of Rosneft Marine (UK) Ltd (Rosneft).
The case, which is now set to be heard on March 22, was at risk of not being heard until late in 2016 or even into 2017.
News of the latest hearing comes after three lower courts had found that the Sale of Goods Act 1979 did not cover contracts signed with OW Bunker as an intermediary for the supply of bunkers on credit.
Under the ruling, the bunker buyer is liable to pay the OW Bunker invoice as a contractual debt, with the physical supplier able to claim for payment for the actual bunkers, leaving the buyer to effectively pay for the same bunkers twice.
As Ship & Bunker reported in February, the Court of Appeal had granted the owners of the vessel Res Cogitans a leave to appeal.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 597.00 | 1.50 | 689.00 | 1.50 |
| Rotterdam | 525.50 | 0.50 | 678.00 | 7.50 |
| Houston | 550.50 | 4.00 | 684.50 | 8.00 |
| Fujairah | 584.50 | 1.50 | 764.00 | 1.00 |
| Global 20 Ports Average | 599.00 | 1.00 | 755.50 | 3.00 |
| Global 4 Ports Average | 564.50 | 0.50 | 704.00 | 0.50 |
| Global Average Bunker Price | 646.00 | 1.00 | 813.00 | 1.00 |
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