Vitol Hit With $1m Houston Bad Bunker Claim

by Ship & Bunker News Team
Tuesday May 7, 2024

Charterer Petredec Global Shipping Pte Ltd. (Petredec) is seeking $1 million in compensation from Vitol as a result of what it claims were bad bunkers delivered to its vessel in January.

Documents filed in the Southern District of New York, and seen by Ship & Bunker, indicate the stem in question comprised approximately 1750 MT of VLSFO that was lifted by the M/T Navigare Generosa on January 11, 2024.

Separate records show the 2015-build VLGC is owned by Navigare Capital.

In its complaint, Petredec says the deal was made on January 10, 2024 via a broker, with the fuel physically delivered by Vitol to the Vessel the following day in Houston.

“The Vessel attempted to burn the Fuel, but burning of the Fuel led to the accumulation of sludge in the Vessel’s engines, which, according to the Vessel’s Head Owners, in turn caused damage to the Vessel’s fuel system,” Petredec says in its claim.

“Testing of the Fuel has revealed that the Fuel contains abnormal/impermissible levels of organic fatty acids and thus does not comply with the required ISO 8217:2010 quality specifications.

“Because the Fuel fails to comply with the quality specifications set forth in the Bunker Contract, the remainder of Fuel onboard cannot be burned by the Vessel, as burning the Fuel could result in to damage to the Vessel’s engines, which could in turn cause the Vessel to lose propulsion. The loss of propulsion at sea would expose the Vessel to a significant risk of property damage, and would also greatly increase the risk of other issues such as an oil spill or other environmental damage.”

As a result, Petredec is claiming a sum exceeding $994,710 which is says are its total losses to date as a result of “Vitol’s failure to remove and/or replace the off-spec Fuel”.

The charterer is also claiming costs, attorney fees, and interest, and says it also faces significant claims from the owners of the vessel as a result of the bad bunkers.