Contents
Foreword
Preface
The banana boat and the interrupted lunch
About the author
Acknowledgements
Table of Cases
List of Tables and Figures
Introduction
The legal aspects of bunkering
International business
What are bunkers?
Origin of the term
Different types of bunker fuel
Simple definition of bunkers
When does oil become bunkers?
Can oil stop being bunkers?
Lubricants
Some other definitions
A little more about bunkers
What goes into bunker fuel?
Other fuel sources
PART I – DOING BUSINESS
Chapter 1 - The basics of the law of contract
Legal systems
Contract
Agreement
Intention to create legal relations
Consideration
Summary
Sequence
Certainty
LEGAL ISSUES IN BUNKERING
Chapter 2 - Particular features of bunker contracts
Incorporating Terms and Conditions
Course of dealing
Priority of provisions
No Terms & Conditions
The battle of the forms
Chapter 3 - The short life of an unremarkable bunker stem
Identifying the essential components of a contract
Chapter 4 - What sellers include in their Terms and Conditions
Definitions
Grades and quality
Quantities and measurements
Sampling
Delivery
Documentation
Requisition
Bunker delivery note
Short delivery complaint or protest
Price
Payment
Credit
Prohibition of set-off
Timely payment and interest
Interest rates
Liens and other rights of the seller
Claims
Quantity claims
Quality claims
The use of samples
Delay or demurrage
Indirect and consequential loss
Limitation of liability
Risk and title
Termination
Indemnity
Force majeure
Safety and the environment
Dispute resolution
Law and jurisdiction
Alternative dispute resolution
The BIMCO Standard Dispute Resolution Clause
Catch-all jurisdiction provisions
Conclusion
Chapter 5 - The role of bunker brokers and other intermediaries
Chapter 6 - Charterparty relationships
Time charters
Bunkering clauses
BIMCO Fuel Sulphur Content Clause
Bunker Quality Control Clause for Time Chartering
Raising standards
Dispute resolution
Links in the chain
PART II – WHEN THINGS GO WRONG
Chapter 7 - The unpaid seller
Chapter 8 - Ship arrest
History
A simple arrest for a simple debt
A complicated arrest for a simple debt
Chapter 9 - The M/V Skyptron – an interesting US experience
Chapter 10 - Retention of title clauses
Chapter 11 - Quantity disputes
Chapter 12 - Quality disputes
Admissible evidence
Mitigation
Limitation of liability
Technical issues
Time limits
Chapter 13 - Charterparty disputes
Ownership of the bunkers
Bunkers on delivery and redelivery
Off-hire
Deductions from hire
Safe place of bunkering
Quantity disputes
Quality disputes
LEGAL ISSUES IN BUNKERING
Implied terms
Chapter 14 - The problem of mismatch in Terms and Conditions
Chain of contracts
Time limits
Sampling procedures
Passing of risk and retaining title
Applicable law, jurisdiction and arbitration provisions
Adopting a sub-contractor’s terms
Charterers
Chapter 15 - Claims in tort
Torts
Pure tort claims
Duty of care
Where claims in tort can be useful
Tort and contract
Fundamental breach
The complexity of contractual and tortious relationships
Torts involving conversion
Collision and other similar incidents
Chapter 16 - A brief review of some interesting cases
The Silia
The Span Terza
The Saetta
The Yuta Bondarovskaya
The Fesco Angara
Tramp Oil & Marine v Lomar Shipping 1991 (unreported)
Other cases
Part III - Regulations and conventions
Chapter 17 - Introduction and a note about the IMO
Oil Pollution Act of 1990 (OPA 90)
SS600
The International Maritime Organization (IMO)
The MARPOL Annex VI Revision
Chapter 18 - The MARPOL Convention, Annex VI and enforcement
MARPOL 73/78 – the Convention itself
Annex VI to the MARPOL Convention
Fuel oil quality
Fuel oil availability
Effectiveness of Annex VI
The European Union Directives on sulphur
Enforcement
The Paris MoU on Port State Control
Coverage
Objective
Inspections
Stepped approach
Action
IMO guidelines for Port State Control under Annex VI
Objective
Enforcement by states
The Netherlands
Suppliers
Historical infringements
The non-availability provision in Annex VI Regulation 182
Chapter 19 - Oil pollution and limitation of liability
Introduction
Scope
Oil tankers
Civil Liability Convention
The Fund Convention
Limit of liability
Bunkers on other ships
Compulsory insurance
Applicability
The International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001
The Bunkers Convention
The existing regime
A bunker specific regime
Origins of the Bunkers Convention
Commencement
Review
Implementation
Protection for salvors and similar
The HNS Convention – human and other harm and other pollution damage
Implementation
Scope
Substances
Regime
Excess fund1
LEGAL ISSUES IN BUNKERING
Insuring the shipowner’s liabilities
Limitation of liability
Contractual limitation
Vessel limitation
The 1976 Limitation Convention
Financial limits
Exceptions
APPENDICES
Appendix 1 - Terms implied into contracts by
the Sale of Goods Act 1979
The Sale of Goods Act implied terms
Excluding implied terms
Time
Title
Description
Quality and fitness for purpose
Satisfactory quality
Reasonable fitness for a particular purpose
Other provisions in Section 14
Quality and fitness summary
Conditions and warranties
Significance of the difference
Buyer’s options
Seller’s opportunity
Implied terms in practice
Appendix 2 - The Unfair Contract Terms Act
Summary
Limitations to the scope of the UCTA
Some examples of the effects of Sections 26 and 27 on bunker contracts
What the provisions mean in practice
Footnote
Appendix 3 - Examples of contract clauses excluding or modifying implied terms
BIMCO
BP
Chevron Marine Products
Cockett Marine Oil
Words of caution
Appendix 4 - Remoteness of damage
Remoteness of damage in contract
Application of the principle of remoteness to bunkers and bunkering
Charterparties
Appendix 5 - Arrest in England
Maritime liens and statutory liens
The arrest
Caveats
Appendix 6 - Arrest in the United States
Appendix 7 - Bribery and corruption
OECD Convention on Combating Bribery of Foreign Public Officials
The Bribery Act 2010
Background
The four new offences
The adequate procedures defence
UK Government guidance
International scope
Penalties
Compliance
The future
Anti-competitive practices
Appendix 8 - The BIMCO Standard Bunker Contract
List of abbreviations
LEGAL ISSUES IN BUNKERING
Table of Cases
Table of Cases
Achilleas, The, Transfield Shipping Inc v Mercator Shipping Inc [2008] UKHL 48
Arild v Hovrani [1923] 2KB 14
Cantieri Navali Riuniti v M/V Skyptron, (WDLa 1985) 621 F Supp 17
Cantieri Navali Riuniti v M/V Skyptron et al US Court of Appeals, Fifth Circuit – 802 F2d 160,
Oct 14, 198
Caparo Industries plc v Dickman [1990] 2 AC 60588
Donoghue v Stevenson [1932] AC 56288
Fesco Angara, The, Angara Maritime Ltd v Oceanconnect UK Ltd and OceanconnectCom Inc
[2010] EWHC 619 (QB) 94,96
GHSP Inc v AB Electronic Ltd [2010] EWHC 1828 (Comm)10
Hadley v Baxendale (1854) 9 Ex Ch 341175, 177, 178
Oricon Waren-Handels GmbH v Intergraan NV [1967] 2 Lloyd’s Rep 82, 96159
Saetta, The, Forsythe International (UK) Ltd v Silver Shipping Co Ltd and Petroglobe International
Ltd [1993] 2 Lloyd’s Rep 268 94, 97
Silia, The [1981] 2 Lloyd’s Rep 53493
Solholt, The [1983] 1 Lloyd’s Rep 605 CA at 60873
Span Terza, The [1984] 1 Lloyd’s Rep 11993, 94
Sylvia, The, Sylvia Shipping Co Ltd v Progress Bulk Carriers Ltd [2010] EWHC 542176
Tramp Oil & Marine v Lomar Shipping (1991)99
Trans-Tec Asia v M/V Harmony Container, US App (9th Cir March 11 2008)183
Wagon Mound, The, Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd, No 1
[1961] AC 38887
Yuta Bondarovskya, The [1998] 2 Lloyd’s Rep 35795
LEGAL ISSUES IN BUNKERING
List of Tables and Figures
List of Tables and Figures
Figure 1 Distillate marine fuels
Table courtesy of BSI (wwwbsigroupcom)
Figure 2 Residual marine fuels from ISO 8217:2010
Table courtesy of BSI (wwwbsigroupcom)
Figure 3 Some contractual bunkering chains
Figure 4 The complexity of contractual and tortious relationships in bunkering
This chart was devised by and is reproduced with the permission of Alex Macinnes, a solicitor
in the London office of Norwegian law firm Wikborg Rein (wwwwrno)
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