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Adams and Reese LLP: Fifth Circuit Limits Bunker Suppliers’ Maritime Lien Rights

Bunker suppliers should consider how to contractually secure maritime liens against bunker tanker and the receiving vessel which the bunkers are ultimately bound.
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International legal firm Adams and Reese LLP Maritime Team Leader and Partner Matthew C.Guy on Wednesday (24 June) published an article cautioning bunker suppliers to be aware of their maritime lien rights when drafting supply contracts to avoid tricky situations whereby the party to whom it supplies bunkers is carrying the fuel as cargo to another supplier and defaults on payment:

In Martin Energy Services, LLC v. M/V Bourbon Petrel et al., the Fifth Circuit recently held that when a supplier of bunkers provides fuel to a supply vessel that will be transporting the fuel to another vessel for its use, the bunker supplier does not have a maritime lien against the supply vessel.

The ruling should be of concern to bunker suppliers as this means they may not have the protection of a maritime lien against a vessel when the fuel purchaser defaults on payment. Bunker suppliers should consider revising the terms and conditions of their supply contracts to make sure that their maritime lien rights are protected as far as possible in light of this ruling.

Lien on Me

Martin Energy Services, LLC (Martin Energy) delivered fuel to three support vessels owned by CGG Services, US, Inc. (CGG) that carried the fuel in their cargo tanks to three vessels performing seismic surveys off the coast of Louisiana.

CGG had originally purchased fuel directly from Martin Energy, but due to credit problems had begun to buy through a trader, O.W. Bunker USA, Inc. (OW Bunker), although Martin Energy, still supplied the fuel. Each vessel had a cargo tank that carried the fuel bound for the seismic vessels and a day tank for the supply vessels themselves. OW Bunker filed for bankruptcy. CGG had not paid its invoices for the fuel supplied by Martin Energy. CGG settled with OW Bunker but did not forward payment to Martin Energy, who commenced suit.

Lien on Me, When You’re Not Strong

The district court held that Martin Energy had a maritime lien on the CGG vessels because it had provided “necessaries” to those vessels within the meaning of the Commercial Instruments and Maritime Liens Act, 46 USC. 31301-31343 (CIMLA). The district court reasoned that the supply vessels were “floating gas stations” and that the fuel was “necessary” to perform their mission.

The Fifth Circuit reversed the district court and held that the fuel was merely cargo carried to support other vessels. Cargo could not be said to be necessaries to create a maritime lien. Fuel would qualify as a necessary under CIMLA if it was supplied to refuel a vessel and may have qualified as such with regard to the seismic vessel, but that was not the case with the supply vessels that were just carrying it. The Fifth Circuit agreed with CGG that to hold that fuel supplied as cargo was a necessary would represent an unprecedented expansion of CIMLA.

We All Need Somebody to Lien On

The ruling potentially leaves bunker suppliers without a maritime lien when the party to whom it supplies bunkers is carrying the fuel as cargo to another supplier and defaults on payment. The Fifth Circuit acknowledged that the bunker supplier may have a maritime lien against the vessel that is ultimately being supplied but rejected Martin Energy’s claim that the situation needed to be viewed “from the vendor’s perspective.” This increases the risk being assumed by the bunker supplier because the vessel that is ultimately being supplied may have left the jurisdiction or be encumbered by preferential lien rights. Bunker suppliers should consider what steps they can take contractually to secure maritime liens against both the supply vessel and the vessel to which the bunkers are ultimately bound. 

Our Maritime Team will continue to share the latest developments and provide insights as we continue to monitor the ever-changing, ever-shifting legal landscape in the maritime industry.

Guy Matt hs


Source: Adams and Reese LLP
Photo credit: CA5 U.S. Courts
Published: 30 June, 2020

 

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Biofuel

BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

Bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier “Berge Lyngor”, which was bunkered in Singapore in early May.

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

BHP and the Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (3 June) said they have blended biofuels from two distinct feedstocks—used cooking oil and waste animal fats —and introduced the lower-emissions marine fuel into a BHP-chartered bulk carrier as part of a pilot project.

The bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier Berge Lyngor, owned and operated by Berge Bulk, transporting BHP iron ore from Western Australia to China. When run on bio-blend, the vessel has the potential to reduce well-to-wake greenhouse gas emissions by approximately 79 per cent per voyage compared to sailing on very low sulphur fuel oil (VLSFO).

The vessel bunkered in Singapore in early May with a B100 bio-blend comprising 50 percent tallow-derived biodiesel, sourced and supplied by HAMR Energy, and 50 per cent used cooking oil (UCOME) supplied by Mitsui & Co Energy Trading Singapore (METS).

Mitsui also blended the fuel and Dan-Bunkering coordinated and executed the bunkering operation, which was performed by Global Energy’s barge MT Maple.

The BHP and GCMD pilot will assess how biofuels from multiple feedstocks can be blended, handled, and introduced under real-world operating conditions using existing used cooking oil bunkering infrastructure.

At the same time, insights from this pilot will help identify solutions to challenges related to fuel quality, handling, traceability, and onboard vessel performance.

Biofuels for global shipping today rely heavily on used cooking oil – a feedstock whose availability is approaching its projected limits. Biofuel from waste animal fats presents a promising option to expand the supply of lower-emissions marine fuels.

The outcomes of the pilot are expected to shed light on the practical steps to integrate biofuel blends from different feedstocks into existing supply chains. The diversity of biofuels will provide shipowners and operators with greater flexibility to optimise fuel procurement based on cost, availability, and lifecycle emissions performance.

Biofuels derived from different feedstocks can exhibit varying properties that may impact operations, including potential corrosion from oxidation, fuel system clogging caused by wax formation, which this pilot aims to assess.

The pilot will trace and verify the biofuel blend’s integrity aimed at bolstering confidence in emissions reductions reporting. The pilot will also provide insights into how robust tracing can support future marine fuel supply chains where biofuels from multiple feedstocks with varying lifecycle greenhouse gas emissions footprints are blended together.

This project is co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund (MINT).

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 3 June, 2026

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Biofuel

NYK starts one-year B100 bio bunker fuel trial on car carrier

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices.
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NYK starts one-year B100 bio bunker fuel trial on car carrier

Japanese shipping firm NYK on Tuesday (2 June) said it has commenced a one-year long-term trial involving the continuous use of 100% biofuel (B100) on an NYK-operated car carrier. 

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices. High-purity biofuels such as B100 are known to be susceptible to degradation from oxygen, light, and heat, raising concerns about the stability of such fuels during long-term use.

In this trial, the biofuel primarily comprises FAME (Fatty Acid Methyl Ester) derived from used cooking oil and similar feedstocks.

The initiative is designed to evaluate the fuel’s effects on the vessel’s equipment and verify operational safety under real-world conditions. 

Through this effort, NYK seeks to accumulate technical expertise that will support the broader use of high-purity biofuels and further accelerate efforts to reduce greenhouse gas (GHG) emissions.

NYK has been advancing the use of biofuels through various initiatives. In 2024, the company conducted a trial using biofuel blend B24 and subsequently expanded practical usage to B30. However, the company said there remains limited global experience with the long-term continuous use of B100.

“By collecting long-term operational data through this trial, NYK aims to accumulate valuable technical insights to support both the safe operation of vessels and the wider adoption of high-purity biofuels,” it said. 

 

Photo credit: NYK
Published: 3 June, 2026

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Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

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June 3, 2026

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VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

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