MSC Settles $3.7M OW Bunker Dispute With ING, Physical Supplier

MSC Ela was one of seven vessels stemmed with the disputed bunkers.

Mediterranean Shipping Co (MSC) has settled its near $3.7 million bunker dispute with former industry heavyweight OW Bunker, assignee ING Bank, and perhaps notably, the physical supplier in the case, Harley Marine. 

Court papers filed last week at the United States District Court Southern District of New York reveal no details of the deal, which was signed by OW Bunker North America Inc, OW Bunker USA, Inc, OW Bunker Switzerland, SA, and ING Bank N.V., as well Harley Marine.

The original dispute saw MSC file an interpleader action on April 23, 2015 for bunkers totalling $3,681,996.35 that had been delivered to seven vessels - MSC Bhavya, MSC Carmen, MSC Ela, MSC Nerissa, MSC Raina, MSC Sola, and MSC Stella.

"Each defendant contends it is entitled to payment for the Bunkerings, Plaintiff has made no payments for any of the Bunkerings because of these competing claims, is unsure which Defendant to pay, and will be subject to multiple payments for the Bunkerings," MSC said in its original filing - a familiar story for many buyers caught with outstanding bunker bills around the time of the November 2014 collapse of OW Bunker.

While it is unclear what each party was ultimately paid, Jonathan Crow QC in March, arguing a similar case in the UK, noted that ING was claiming 100 percent of the monies from the disputed bunker bill, but had it not been for its bankruptcy OW Bunker would have only ever seen "perhaps 1 percent" of those monies.

Moreover, as well as being what is believed to be one of the larger U.S. based actions, the timing of this settlement is notable as it comes on the heels of two recent court decisions in the U.S. that suggested the country's physical suppliers would be left unpaid in such OW Bunker disputes.

As Ship & Bunker reported last month, lawyers in one of those cases, O'Rourke Marine Services versus M/V Cosco Haifa and M/V Cosco Venice, said "OW is the first of any major occurrence in the bunker market where there has been a claim for a maritime lien where suppliers are unpaid."