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Galadari Advocates & Legal Consultants: Securing a bunkering claim in United Arab Emirates

Partner Abdelhak Attalah discusses possibility for a bunker supplier, whether a physical supplier or a trader, to arrest and enforce the statutory lien generated by their debt over a ship in UAE jurisdiction.

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Law firm Galadari Advocates & Legal Consultants partner Abdelhak Attalah released an article to discuss the possibility for a bunker supplier, whether a physical supplier or a trader, to arrest and enforce the statutory lien generated by their debt over a ship in the United Arab Emirates (UAE) jurisdiction:

The right of ship arrest under UAE law for unpaid bunker

Relevant to our following discussion is that for ship arrest the UAE has adopted a “closed-list” approach for the definition of a “maritime claim”, where a list consists of limited numbers of maritime debts based on which only a ship could be arrested. These are reduced to fifteen (15) classes of maritime claims listed in Article 115(2) of the UAE Federal Law of No. 26 of 1981, as amended by Federal Law No. 11 of 1988, concerning the Commercial Maritime Law (“CML”). As for the bunkering claim, it is listed in paragraph (i) of the said Article which classifies it as: “Supplies of products or equipment necessary for the utilization or maintenance of the vessel, in whichever place the supply is made.” Thus, ship arrest in the UAE is a preservatory remedy to obtain security, in favor of an unpaid bunker claim in the merits whether commenced or to be commenced through court litigation or arbitration.

Bunker litigation in the UAE and the time-bar (a statute of limitations as known under common law jurisdictions)

Bunker claim is not only classified by the CML as “maritime debt” but a “priority debt” as stated forth in Article 84 (e) of the CML which classifies bunkering debt as:

“Debts arising out of contracts made by the master, and operations carried out by him outside the port of registration of the vessel within the scope of his lawful powers for an actual requirement dictated by the maintenance of the vessel or the continuance of its voyage, whether or not the master is also the owner of the vessel, or whether the debt is due to him, or to persons undertaking supply, or lenders, persons who have repaired the vessel, or other contractors.”

Thus, bunker claim takes precedence over some other maritime debts such as ship mortgage, demurrages, and insurance premium, and it ranks pari passu with other ship supplies. However, bunker claim would be time-barred within six (6) months as stated forth in Article 93 of the CML.

The validity of the incorporation of an English law clause contained in the General Terms and Conditions of the bunker supplier into their bunker delivery receipt under UAE law

The position of the UAE Courts has been clearly apparent regarding the incorporation by reference of a clause contained in another standard form contract or in the General Terms and Conditions of a trader stating for the application of the English law into an underlying contract as decided by the Dubai Court of Appeal in Cigna Insurance Middle East (S.A.L) v. Agribusiness United DMCC, Dubai Commercial Appeal No.2320 of 2021 and confirmed by Dubai Commercial Cassation No. 204 of 2022.

This ruling would have considerable benefit for bunker suppliers in raising their claims before UAE Courts, because, while unpaid bunker is not considered as a maritime claim under English law unlike the UAE law as confirmed in  the English case PST Energy 7 Shipping LLC v O.W. Bunker Malta Ltd [2015] EWCA Civ 1058 (‘Bunkers’) however, in the same case, the arbitrators, the first instance judge and the Court of Appeal decided that the price of the supplied bunker was due as a matter of debt. Therefore, the supplier’s claim is a straightforward claim in debt and as such is subject to section 5 of the Limitation Act 1980 which states:

“Time limit for actions founded on simple contract: “An action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.””

Thus, whenever the terms and conditions of the bunker suppliers state for the application of English law to their supply contracts, they may rely on the extended statutory time limit of six years stated forth by section 5 of the Limitation Act 1980 instead of the six months stated forth in Article 93 of the CML.

The validity of the incorporation of an arbitration clause contained in the General Terms and Conditions of the bunker supplier into their bunker delivery receipt under UAE law

While Article 7(b) of the UAE Arbitration law of 2018 allows the incorporation of an arbitration clause contained in the General Terms and Conditions by reference those General terms and conditions however, the general rule of incorporation by reference is the “express terms” requirement where specific wording is used. Indeed, in Al Buhaira National Insurance Co. v. The Shipping Corporation of India Limited (Cassation No. 363 of 2011, Civil Appeal), the wording of incorporation of an arbitration clause stated that: “All terms, conditions and exceptions (including but not limited to Due Diligence, Negligence, Force Majeure, War, Liberties and Arbitration clauses) contained in which charter are herewith incorporated and form part hereof.” The court of cassation held that, the above incorporation wording in the bill of lading was sufficiently express to enable the charter party arbitration clause to be validly incorporated by reference. The requirement of express reference to the arbitration clause was confirmed by UAE Courts in recent rulings such as in the Dubai Courts Real Estate Cassations Nos. 603 and 693 of 2021.

Thus, the important aspect of the Court of Cassation’s ruling is that an arbitration clause contained in the General Terms and Conditions of the bunker supplier can be incorporated into their bunker delivery receipt by reference, as long as: (a) not only those General Terms and Conditions are incorporated by reference; but (b) the referral of disputes to arbitration as specified in the relevant General Terms and Conditions clause is also specifically incorporated into their bunker delivery receipt.

 

Photo credit: David Rodrigo on Unsplash
Published: 13 March, 2023

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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