Ocean Intelligence
Shipowners at risk from charters' unpaid bunker bills
P&I club says owners should alert suppliers to 'prohibition-of-lien' clauses.

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Comments on this Article

George Gaviotis
Oil Marketing & Trading International LLC (OMTI)
26th January 2009
Very good points the rep. of the P and I club makes, however he ignores that fact that no supplier (to my knowledge) accepts such remarks on the BDN. So what is his suggestion? Vessel's should be left without bunkers? Ultimately the supplier is not concerned about the contract between the charterer and the owner. He wants to be able to recover funds for fuel supplied to the vessel that enabled the vessel to perform and make money for both the charterer and the owner. This issue should be addressed at charter party level with options for owner to recover in case of charterer default.
Duncan Jeffcock
Voyager Maritime Payment Systems
27th January 2009
The c/p does address this issue, it is usual for a tc/p to clearly state that responsibility for bunker purchase and supply lies with the Charterer. With that contractual relationship clearly spelled out an owner should not be expected to cover the liabilities of the charterer if they walk away from their responsibility. It is therefore incumbent upon the supplier to satisfy themselves that the charterer will pay.
The rates agreed in a tc/p between both parties are achieved on the premise that charterers pay the bunker costs.
Duncan Jeffcock
Voyager Maritime Payment Systems
23rd January 2009
This has always been a concern when a market downturn occurs or when a charterer defaults for whatever reason. There are few effective protections for an owner caught up under these circumstances as illustrated by this timely reminder.
fromantoan fromantoan
16th November 2009
Hey, there are many shipowners involving this matter nowadays
Duncan Jeffcock
Voyager Maritime Payment Systems
16th November 2009
Indeed there are and there will be more and more of them as the situation becomes more difficult in the months ahead as new tonnage is delivered into an already saturated market in most trades.

It is clear that suppliers must be able to hold the buyer (charterer) responsible for settlement of invoices for fuel delivered. The suggestion was that chasing an owner for a charterers debts was valid, but that clearly is not the case.

Suppliers are more vulnerable now than at any other time. The combination of high and rising fuel prices and increasingly unacceptable and unquantifiable risk are forcing changes to suppliers strategies not previously so widely used, such as;
Cash in advance,
Lower credit limits,
Shorter credit periods.
These are driven by internal as well as external pressures from such as banks and insurers.

Sound familiar?

No one knows who the next big casualty will be, but everyone in this industry knows that sooner or later another big name will fall and no one wants to be overexposed when that happens.

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