24/7

Collecting bunker debt - when urgency matters

7 апреля : ru 6 en 38 апреля : ru 4 en 129 апреля : ru 2 en 3 всего: 6907.04.20

Task

The Client – large bunkering company making business in Black Sea Region – applied to Interlegal for debt recovery for bunker supply from the Shipowner amounting to 50,000 USD.
With regards to the Client’s maritime claim against the Debtor, Interlegal lawyers offered to arrest the Debtor’s Vessel.
The fact of indebtedness was evidenced by email correspondence between the Vessel Manager and the Client upon bunker order and payment, the Bunker Delivery Note signed by the Vessel Master and the Client’s current Terms and Conditions on bunker sale and purchase.

Interlegal tasks were the following:
1) Standard terms to be proved in the process of ship arrest (the Vessel location, title on the Vessel, evidence of maritime claim etc.);
2) Evidence of Manager’s powers under bunker purchase order;
3) Whether the Client’s current Terms and Conditions on bunker sale and purchase shall apply to the Customer.

Problem solution

With regards to vast experience in similar dispute settlement, Interlegal project team drafted in due time and submitted to the appropriate bodies a series of Attorney’s Requests regarding the Vessel location (route) and certifying title on the Vessel.

Till the crucial moment, Interlegal lawyers drafted the Application on the Vessel arrest as maritime claim security and obtained the necessary replies to their Attorney’s Requests.
Application stated that the Vessel Master, acting in the interests and on behalf of the Shipowner, signed the Bunker Delivery Note, certifying the fact of bunker receiving in the prescribed quantity and quality, and confirmed the fact that the Client’s current Terms and Conditions on bunker sale and purchase apply to the Customer.

The Client’s current Terms and Conditions on bunker sale and purchase, inter alia, provide the following:
- Order on all the products shall be deemed as arisen from the Vessel Master, even if sent by the Buyer to the Seller, even in the absence of the Vessel Master’s written request. Therefore the cost of such supplies shall be deemed as direct encumbrance of the Vessel.
- The Buyer undertakes to pay the cost in accordance with the Contract. Although the Seller issues its invoice immediately upon delivery, the Buyer’s payment obligation shall not depend on issuing the invoice.
In view of the aforesaid situation, Interlegal lawyers could settle all the issues in order to satisfy the Client’s request in full.

Result

The Ukrainian court arrested the Vessel; one day later the Client received full indebtedness from the Shipowner amounting to 50,000 USD.

Our principles of cooperation with clients do not allow us to disclose company names and other confidential information.

Authors:

  • BIMCO PUBLISHES COVID-19 CREW CHANGE CLAUSE2020.06.25

    Although travel restrictions are beginning to ease, there are still restrictions in many countries impacting on crew changes. The new clause...

    show more
  • Ship arrest in Ukraine: new approaches2020.06.18

    The concept of one shipowner – one vessel The concept of one shipowner – one vessel arose due to shipowners’ reasonable desire to secure...

    show more
  • Collecting bunker debt - when urgency matters2020.04.07

    Task The Client – large bunkering company making business in Black Sea Region – applied to Interlegal for debt recovery for bunker supply...

    show more
  • Amendment of Ukrainian legislation relating to ballast waters inspection2019.09.17

    Dear Interlegal clients, Please be informed that in the third quarter of the 2019 year significant changes of Ukrainian legisla...

    show more
  • International Convention on Arrest of Ships Enters Into Force in Turkey2019.05.22

    A presidential decree has been published in the official gazette on 03.05.2019 marking the date on which the 1999 Convention officially beca...

    show more
  • LMAA arbitration notice clause2019.02.27

    The LMAA has published a clause for use in arbitration agreements to facilitate effective notice by email (including for commencement of arb...

    show more
  • We’ll go another way. Tailor-made Voyage Charter for large metal product exporter2017.01.11

    Task First, the dispute arose between the Shipowner and the Charterer – large cargo owner, due to unclear freight payment clause in the F...

    show more
  • General average shadows. How to refund costs: 13 years after the disaster.2018.01.11

    Task In 2005, m/v “Norasia Taurus” owners declared on the general average due to container inflammation while the vessel wa...

    show more
  • Costa Concordia: the last cruise2013.01.11

    Task In January 2012, m/v Costa Concordia shipwrecked in the Mediterranean Sea off the coast of Giglio Island. At the moment of disas...

    show more
  • Turkish Parliament has ratified the International Convention on the Arrest of Ships 19992017.09.12

    Turkish Parliament has ratified the International Convention on the Arrest of Ships 1999 ("1999 Convention") and the International Conventio...

    show more