World News
Swedish Club Advises on Ways to Reduce Risks When Using Intermediaries to Buy Bunkers
The Swedish Club, who say its lawyers are currently handling "about 40 cases" involving disputes over the collapse of OW Bunker & Trading A/S, is advising owners and charterers to take specific steps to "bring contractual clarity" and lessen the risk for competing claims.
The Club points out that OW Bunker's bankruptcy and the British and U.S. court cases that have tried to determine the legal parameters involving bunker payment have demonstrated "significant risks for shipowners and charterers in using intermediaries for the supply of bunkers."
It adds that "There is an inherent risk for competing claims against vessels to the extent the intermediary fails to pass on the payment to the physical supplier."
The preventative steps outlined in the Club's December 7 Member Alert include: inserting BIMCO's non-lien clause in the charter party; providing suppliers prior to ordering bunkers with a notice exempting vessels from any liens, encumbrances, or rights; and avoiding any reference on the bunker delivery receipt to the supplier's terms and conditions ("in order to avoid creating a direct contract between the vessel owner and the supplier," according to the Club).
Additional steps include stamping and signing the bunker delivery receipt with a reminder that vessels are exempt from liens or claims; and taking out insurance in the event the charterer or bunker intermediary goes bankrupt.
The Club notes that while "there is no magic answer which will eliminate all legal risks in relation to the supply of bunkers," the recommended steps could "mitigate those risks as much as possible, in appropriate circumstances."
However, the Club acknowledges that, in practice, the steps may be difficult to take.
Last month ING Bank NV was reported to have sold its debt as part of OW Bunker's $700 million credit facility, sparking concerns that this could trigger a surge in claims from physical suppliers.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
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