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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


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

 

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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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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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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.

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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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