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SKULD: Title in bunkers – a success story

Marine insurer avoids vessel arrest by creditors looking to claim bunkers from client’s chartered ship.
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8 years ago

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The article below is a press release from marine insurance provider Skuld:

This article relates to a situation where the Owners of a vessel en route to the discharge port informed us that the Charterers have not paid hire and they have in addition failed to provide Owners with a bunkering schedule and the vessel needed to divert for bunker stemming.

Owners therefore made all necessary arrangements for bunkering at a South African port but the main concern at the time was that there were a lot of Charterers' creditors in the market, who were expected to attempt to arrest or attach the bunkers on board.

We immediately sought advice from local lawyers in South Africa who confirmed that our fears regarding the potential arrest of bunkers were well founded as various creditors were making enquiries regarding the arrival of the vessel.

Given the imminent risk of vessel's arrest at the anchorage where she was scheduled to stem bunkers, we worked on a "rescue" plan.

The primary requirement for sustaining a successful bunker arrest is to ensure that the bunkers are indeed owned by the party against which the claim lies.

Arresting creditors will ordinarily rely on the standard terms of the NYPE 93 Charter Form to provide prima facie evidence.

The relevant clauses provide as follows:

7. Charterers to provide
The charterers, while the Vessel is on hire, shall provide and pay for all the bunkers except as otherwise agreed ….

9. Bunkers
The Charterers, on delivery, and the Owners on redelivery, shall take over and pay for all fuel and diesel oil remaining on board the vessel as hereunder."

Thus it was suggested that in order to avert an arrest of the bunkers, Owners should try to purchase the remaining bunkers on board before the Vessel entered South African territorial waters.

Provided that the sale was arranged in accordance with the terms and conditions of the Charterparty under English law, and it was concluded on the basis of a fair market value and in terms of a written commercial arms-length agreement between the Owners and Charterers, the transfer of ownership of the bunkers would be legitimate. In such a case the bunkers would not be owned by Charterers at the time of arrest and therefore the arrest would be removed forthwith and the vessel would be free to sail.

In view of the above, and in consultation with English SoIicitors, we put forward a proposal to Charterers seeking their agreement for Owners to take ownership of the bunkers before the vessel's arrival at the port. Charterers indeed provided their agreement and an addendum, reflecting the agreement, was promptly drafted and executed by both parties.

However, given that the executed addendum could only assist Owners in quickly releasing the vessel from a potential arrest, which would still result in delay to the vessel, local lawyers came up with the idea to circulate a letter to all the major shipping law firms in the area drawing their attention to the sale of the bunkers and informing them that the bunkers on board the vessel as well the bunkers that were to be stemmed in port would be for Owners' account. To that effect the letter's purpose was to put the lawyers and their clients on notice that the bunkers on board were not owned by Charterers. Therefore, any arrest or attachment of the bunkers on board would be wrongful and any damages related to the vessel's delay would be sought from the arresting party.

The vessel eventually reached the port and bunkering was completed uneventfully.

We have thereafter been informed that the letter had deterred specific creditors from applying for bunkers' arrest during the vessel's call in the South African Port.

Special credit should be given to Graig Cunningham and Lana Jacobs from Bowmans Gilfillan (Cape Town) for their prompt and efficient assistance provided in relation to this matter.

Published: 21 March, 2018
 

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Winding up

Singapore: High Court to hear Norvic Shipping Asia winding up application on 31 July

Application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to Government Gazette notice.
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Published

21 hours ago

on

July 22, 2026

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RESIZED singapore high court

An application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to a Tuesday (21 July) notice on the Government Gazette.

It noted the winding up application is directed to be heard before the Judge sitting in the General Division of the High Court at 10am on 31 July.

Any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose.

A copy of the winding up application will be furnished to any creditor or contributory of the company requiring the copy of the winding up application by the solicitors of the applicant’s, Oon & Bazul LLC, on payment of the regulated charge for the same.

The Applicant’s address is Hiridostraat 5, Gebouw Prismatrium, 1101CW Amsterdam, The Netherlands.

The Applicant’s solicitors are Oon & Bazul LLC of 103 Penang Rd, #04-04/05/06 Singapore 238467. 

Queries on the winding up application may be directed to the following email addresses: [email protected] and [email protected].

 

Photo credit: Manifold Times
Published: 22 July, 2026

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Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

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Published

2 days ago

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July 21, 2026

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RESIZED Sora Shimazaki on Pexels

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July). 

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions. 

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

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Published

2 days ago

on

July 21, 2026

By

RESIZED Drew Beamer

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

  • That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

  • that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
  • that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
  • that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd. 

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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