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Lawyers: Not end of the road for parties affected by thorny issues of commodity trading mishaps

Helmsman LLC lawyers discuss pausing of LC payment, what it means for parties buying ships from companies of a group affected by fraud allegations, and trafficking in spent bills of lading.
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A webinar discussing topical issues relating to Letter of Credit (LC) payments related to sale and purchase (S&P) of commodities, S&P of ships from financially troubled companies facing fraud allegations, and trafficking in spent bills of lading (BL), was organised by international shipping and commodity law firm Helmsman LLC on Wednesday (22 July).

The event started with Maureen Poh, Director at Helmsman, presenting a scenario of a buyer purchasing an oil cargo from a company affected by fraud allegations; with payment of the cargo on basis letter of credit (LC).

Pausing Letter of Credit bank payments

“The immediate concern for the buyer was try to stop payment under LC. It seems simple to tell the bank that there could be a suspected fraud involved with the transaction so ‘please stop’. But actually, this is not so straightforward,” said Poh, who, together with her colleagues, recently advised clients involved with the above scenario.

She explained the S&P chain and documentary chain, though related, are actually separate chains of contracts.

“You might have action against your counterparty in the S&P chain but that doesn’t mean you can stop payment under documentary chain. Documentary credit payment system is “the lifeblood of commerce”, and allowing others to affect documentary credit payment will spell the death knell of commerce,” noted Poh.

“But, some civil jurisdictions in Europe might have a more flexible position. In some jurisdictions there is a general duty of good faith where the court might be more sympathetic to the victim of an alleged wrongdoing.

“In one case, the client managed to get a temporary injunction to stop the issuing bank from proceeding with payment to the negotiating bank so they can gather more evidence of the alleged fraud.

“So, if you find yourself stuck in the LC chain it might be worth exploring another jurisdiction.”

S&P of ships from group under fraud investigations

A question related to considerations for players interested in the S&P of vessels owned by legally separate entities of a group under fraud investigations was posted by Singapore bunkering publication Manifold Times.

Chen Zhida, Associate Director at Helmsman, replied that it is “very common” for big commodity trading groups to have structures, such as a trading arm and shipping arm, to keep operations separate.

“Based on the question there is nothing to suggest the companies are set up to abuse the corporate structure. That being the case, their obligations would be kept separate,” he said.

“Another angle is if those shipowning entities are involved in the alleged fraud, then they might have an associated liability.”

Ian Teo, Managing Director at Helmsman, provided more details of liabilities and maritime liens.

“Maritime liens follow the vessel regardless of who are the owners. As the new owner you have to be responsible for these claims. In Singapore, the main maritime liens we recognise are claims for unpaid crew, and claims arising out of collision. Some countries recognise claims for unpaid bunkers,” said Teo.

“The danger of maritime liens is you do not know they exist until one day they appear. Technically, you can ask the ship manager for an account of who they owe money to but we will not know how accurate that is.

“In Singapore, you can check in the court system for certain vessel claims. There are many things you can do to make sure the vessel is free of liens but you need to bear in mind you are buying a vessel under such situations.  Do your due diligence.”

Trafficking of spent Bills of Lading

Tang Chong Jun, Executive Director at Helmsman and Managing Director of Tang & Co, shared there could be trafficking of spent BLs in Singapore.

“It is normal to present the Bill of Lading when taking delivery of cargo; but in shipping, many do not do this and there is a widespread practice of parties taking cargo under a Letter of Indemnity. The party which doesn’t surrender those Bills of Lading can take it into the bank and ask for finance,” said Tang.

“We have a recent case on hand where we are acting for the shipowner who did not collect the Bill of Lading. Obviously, when banks found out they sued the shipowner for failing to collect the original Bills of Lading and claimed the shipowner has misdelivered the cargo.

“The court has acknowledged that there could be trafficking in spent BLs.

“Now, the question is of what will be the implication for those banks who are in receipt of those spent BLs? In my view, this creates a lot of uncertainty where banks now need to do a lot more due diligence on whether BLs are spent.”

Teo added that the trafficking of spent BLs has been increasingly unraveling in recent years.

“This whole practice using the Letter of Indemnity has been going on many years and the practice is starting to show cracks and stress. We are seeing possibly the same cargo being resold and refinanced a few times,” he said.

“Most of time, there is no problem at end of day as the cargo is delivered. But if there is no cargo then something is definitely wrong.”

 

Published: 28 July, 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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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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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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July 22, 2026

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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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July 22, 2026

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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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