STX Vessel Arrested in US Over $1M in Unpaid Bunker Bills

The warrant to arrest STX's New Ambition in the U.S. was issued on Monday.

Troubled South Korean shipping company STX Pan Ocean Co. Ltd (STX) has had its charter vessel m/v New Ambition arrested in the U.S., along with its bunkers, following claims by World Fuel Services (Singapore) Pte. Ltd (WFS) it has failed to pay the supplier over $1 million in bunker costs.

In documents filed at the U.S. District Court in Seattle last Friday, June 7, 2013, WFS say that around May 20, 2013 they delivered bunkers totalling $432,100 to New Ambition while it was in Busan, Korea.

In addition, on May 21, 2013 the supplier delivered bunkers for the amount of $623,000 to m/v Ocean Vanguard, another vessel believed to be chartered by STX, while it was in Pohang, Korea.

WFS said that the payment terms for the bunkers were "accelerated" as a result of "the recent actions of STX," citing clause 7(g) in their terms and conditions which, amongst other things, say all invoices are immediately payable if there is a change in the financial circumstances of the buyer that might reasonably jeopardise their ability to pay.

WFS emailed STX on June 6, 2013 to demand immediate payment of the outstanding invoices, but say by the following day STX had failed to pay the $1,055,100 owed, and had therefore breached its contract.

On June 10, 2013 the warrant was issued for the arrest of New Ambition, along with the fuel on the vessel.

AIS information shows the vessel is currently anchored at the U.S. Port of Vancouver, Washington.

Ship & Bunker reported Monday that STX filed for bankruptcy citing a broad range of issues including high bunker prices.

Last week STX also had its 72,940 dwt bulker New Irene arrested in Singapore.