This is a legacy page. Please click here to view the latest version.
Wed 2 May 2018, 12:48 GMT

World Fuel Services in legal battle over alleged non-payment of bunker fuel


Case revolves around fuel delivery to the bulk carrier M/V Triton last year.


Image credit: Pixabay
World Fuel Services (Singapore) Pte Ltd (WFS) has filed a lawsuit in Oregon, US, against the bulk carrier M/V Triton for the alleged non-payment of bunker fuel.

According to court documents seen by Bunker Index, the plaintiff is demanding $279,679.12 as of April 18, which is the total outstanding balance for the fuel, including interest and administrative fees, with interest continuing to accrue at the rate of 2 percent per month until the amount owing is paid in full.

WFS claims that, on or around March 15, 2017, it entered into a contract with the charterer of the Triton - Swiss firm Windrose SPS Shipping and Trading SA - to supply the vessel with marine fuel oil (MFO) at an agreed price of $290 per tonne at the port of Singapore.

WFS says it then subcontracted the supply to Universal Energy Pte. Ltd., which subsequently delivered 746.063 tonnes to the ship on March 20, 2017, and was later paid in full by WFS for the operation.

Charterer Windrose was later sent an invoice on March 27, 2017, for $216,358.27, with the amount to be paid within 30 days of the date of delivery, by April 19, 2017.

Approximately three weeks ago, on or around April 11, 2018, WFS says it sent notice of the outstanding balance due to three parties: Husky Trading, understood to be the registered owner; Diana Shipping Incorporated, said to be the beneficial owner of the ship; and Diana Shipping Services S.A., the commercial operator of the vessel.

In WFS's legal complaint, it demands full payment of the aforementioned US$279,679.12, plus accrued interest and additional fees.

Furthermore, the fuel seller requests that a warrant of arrest be issued against the ship, which was due to arrive at the port of Kalama, Washington, on or around April 18, 2018.

The warrant of arrest was subsequently granted by the court on April 19, 2018 - a year to the day since the invoice was allegedly due to be paid.

Universal Energy

At the time of the Triton bunker delivery, in March 2017, Universal Energy was ranked as the third biggest supplier in Singapore by the Martime and Port Authority of Singapore (MPA). However, as previously reported, just over five months later, the company's bunker supplier licence and bunker craft operator licence were not renewed, and this meant that the company was no longer allowed to operate as a bunker supplier and bunker craft operator in Singapore.

Explaining the reason at the time, the MPA said that Universal Energy had accumulated demerit points for the delivery of "severely aerated" fuel, as well as stoppages during bunkering operations.

No evidence has been presented in WFS's case so far to suggest that there were any fuel quality - or other - issues related to Universal Energy's bunker delivery to the Triton, performed by the MT UE Saphire.

In the original bunker delivery note (BDN), seen by Bunker Index, the customer feedback rating was the highest - '5; Very Satisfied' out of a possible 5 - and no Notice of Protest was issued.

Following its licence ban last year, Universal Energy went into liquidation, facing millions in claims from other companies for unpaid fuel bills.


Wolf 1 vessel. Petrol Ofisi launches fuel supply tanker Wolf 1  

Turkish bunker supplier adds 1,750-dwt vessel with alternative fuel infrastructure to fleet.

BIMCO meeting. BIMCO to convene for adoption of biofuel clause and ETS provisions at February meeting  

Documentary Committee to consider new contractual frameworks for alternative fuels and emission trading scheme compliance.

Sea Change II vessel render. Incat Crowther and Switch Maritime develop 150-passenger hydrogen ferry for New York  

Design work begins on 28-metre vessel with 720 kg hydrogen capacity and 25-knot speed.

Aerial view of a container vessel. HIF Global signs heads of agreement with German eFuel One for 100,000 tonnes of e-methanol annually  

Deal covers supply from HIF’s Uruguay project, with e-methanol meeting EU RED III standards.

Welcoming of Kota Odyssey at Jordan’s Aqaba Container Terminal. PIL’s LNG-powered vessel makes maiden call at Jordan’s Aqaba port  

Kota Odyssey is Pacific International Lines’ first LNG-fuelled ship to call at the Red Sea port.

Celsius vessel. RMK Marine to equip Celsius LNG bunker vessel with gas combustion unit  

Turkish shipbuilder adds specialised equipment to support cool-down and gassing-up operations for LNG vessels.

CSL and CMA CGM contract signing. Cochin Shipyard signs contract with CMA CGM for six LNG-fuelled container vessels  

Indian shipbuilder to construct vessels for French shipping company.

Yellow oil with air bubbles illustration. Maximising lubricant value | Joe Star, VPS  

VPS Strategic Account Manager shares insights from the firm's database of lubricant oil results.

IBIA hiring graphic IBIA seeks marketing and events coordinator for remote role  

International Bunker Industry Association is recruiting for a dual-reporting position supporting global campaigns and event delivery.

Erdinc Altun and Pınar Kezer Kilinc. Arkas Bunker and DB Tarımsal Enerji present Turkish biofuel model at IMO seminar  

Turkish firms showcase integrated waste-to-fuel system with ISCC-EU certification at London technical seminar.


↑  Back to Top