ING/OW Bunker, Bomin Hit Singapore Owned Vessel With $1.8 Million in Double Bunker Payment Claims

Both Bomin and ING are seeking payment for the same bunkers delivered to M/V Bulk Finland on October 16, 2014 in Balboa, Panama.

A bulk carrier owned by Singapore-based FGL Medlar Singapore Pte Ltd (Medlar) is facing so-called "double payment" claims filed in a U.S. court totalling almost $1.8 million for fuel bought through OW Bunker and physically supplied by Bomin Bunker Oil Corp (Bomin), court documents obtained by Ship & Bunker show.

The bunkers in question were supplied to the Singapore-flagged 77,126 dwt bulk carrier m/v Bulk Finland (IMO No. 9691577) on October 16, 2014 in Balboa, Panama.

At the time, the vessel was operated by OMC Shipping Pte Ltd (OMC), and chartered by British Virgin Islands-based Tatsuo Consulting Limited (Tatsuo), the latter also being named by ING as the party who ordered the bunkers.

ING Bank N.V. (ING), as the beneficiary of the now defunct OW Bunker, filed its complaint on November 17, 2015, and is seeking a total of $1,061,672.40, including $720,349.19 for bunkers, plus a total of $341,323.21 in accrued interest, administrative fees, and accrued and anticipated attorneys' fees.

ING, who noted OW Bunker was both contracted to provide the bunkers and issued the invoice to Tatsuo, did not specifically mention Bomin in its claim, but submitted evidence including Bomin's Bunker Delivery Receipt (BDR), and a Sales Order Confirmation that named Bomin as the supplier.

Tatsuo was also said to have agreed to OW Bunker's sale terms and conditions.

Bomin, who filed its claim on November 18, 2015, is seeking $719,483.74 plus prejudgment interest and costs.

In its claim, Bomin noted that on October 22, 2014 it had "transmitted its invoice for the Marine Fuel, to the Vessel, its Master and/or Owner and/or Operator and/or Manager of the Vessel, via OW, with 30 day payment terms."

Bomin also noted that on its BDR, "the Vessel's Chief Engineer had acknowledged Bomin's provision of the Marine Fuel to the Vessel, signing the BDR which states explicitly, 'Bunkers and representative sample(s) received in good order. The vessel is ultimately responsible for the debt incurred through this transaction.'"

Both ING and Bomin sought to have the vessel arrested, with ING having been issued an arrest warrant on November 17, 2015, and Bomin on November 23, 2015.

Double Payment

On November 24, 2015 ING filed a consent to release the vessel after lawyers acting on behalf of Bulk Finland offered a substitute security consisting of a $1.08 million bond placed with the court.

The November 24 correspondence, signed by The United Kingdom Mutual Steam Ship Assurance Association (Europe) Ltd. and addressed to both ING and Bomin, made it clear the same bunkers would not be paid for twice.

"To be absolutely clear, the undersigned Association's entire liability for the claims of ING Bank, N.V. and Bomin Bunker Oil Corp. combined under this letter of undertaking shall not exceed the sum of One Million Eighty Thousand and No/100 Dollars ($1,080,000.00), inclusive of interest and costs, not that amount for ING Bank, N.V. and Bomin Bunker Oil Corp. separately," the letter stated.

The so-called OW Bunker test case involving PST Energy 7 Shipping LLC (PST Shipping)'s vessel Res Cogitans being heard in UK courts this year has ruled in favour of OW Bunker/ING three times, leaving bunker buyers open to a double payment scenario as ING are deemed to be claiming a contractual debt owing to OW Bunker, leaving the physical supplier able to claim for the actual bunkers.

In October Ship & Bunker reported that the latest ruling in that case had complicated the picture even further, and that unconsumed bunkers at the end of the credit period were now a factor in the "who to pay" disputes.