CSCL Sought for $1.77M in Unpaid OW Bunker Bill

CSCL deposited $2.6 million with the Singapore High Court in December (file photo)

Russian bunker supplier Big Port Service DMCC (BPS) last week was said to be pursuing China Shipping Container Lines (CSCL) over an unpaid bill for bunkers suppliers through OW Bunker, Tradewinds reports.

BPS is understood to be seeking $1.77 million from the Chinese box carrier through arbitration in New York in relation to the supply of 4,000 metric tonnes (mt) of bunkers.

According to BPS the fuel was delivered to CSCL's 2005-built 5,670 twenty-foot equivalent unit (TEU) capacity box ship, Xin Chang Shu, at the Russian port of Kavkaz.

OW Bunker filed for bankruptcy days later and no payment has been forthcoming.

CSCL's U.S. lawyers, Holland & Knight, have argued that BPS has no contractual right to payment and are said to have asked a U.S. federal judge to halt the ongoing process through the Society of Maritime Arbitrators in New York.

"CSCL did not enter into any contract with Big Port, much less a contract to arbitrate any disputes with Big Port," said Michael Frevola, Partner at Holland & Knight.

According to the lawyers, CSCL contracted with OW Bunker China to buy the fuel, OW Bunker China then contracted with OW Bunker Far East in Singapore, and the latter arranged for the supply with BPS.

However, BPS's U.S. lawyer Stephen Simms has said CSCL is seeking to circumvent a decision by the Singapore High Court, which he says is already set to decide whether the case should go through arbitration.

According to the report, a Singapore decision is expected very soon.

In December, CSCL is understood to have deposited $2.6 million with the Singapore High Court in order to release the Xin Chang Shu from arrest.

Last month, Canadian firm Canpotex filed court papers in an attempt to avoid the arrest of three charters-in bulkers over unpaid bunker bills related to OW Bunker.