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BIMCO highlights due diligence before entering a bunker contract

Suggests eight questions for fuel buyers to consider before entering a binding bunker contract.




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The Baltic and International Maritime Council, otherwise known as BIMCO, advises marine fuel buyers to perform due diligence and consider a series of recommended questions to ask before entering into bunker fuel contracts.

The eight questions that should be asked about a potential counterparty are as follows:

  • Who are you dealing with and who is the legal entity?
  • What terms and conditions will you enter into agreement on (e.g. time bars, limitations, jurisdiction)
  • Does the counterparty have credit insurance?
  • Is the counterparty covered for product liability and have professional indemnity?
  • Is the counterparty financially strong?
  • Does the counterparty pledge its invoices?
  • Does the counterparty have a compliance programme?
  • Have you requested an independent market/credit report of your counterparty?

“A review of the circumstances of the OW Bunker collapse led to the committee to conclude that set-off clauses, pay-to-be-paid clauses, bankruptcy clauses and similar were not commercially or legally workable as they would not work in all cases and in all jurisdictions,” it said in a statement to North P&I Club.

“It also highlighted the importance of risk management and for the buyer of the fuel to carry out sufficient due diligence on the other parties before entering a binding bunker contract.”

The above recommendation follows the launch of the BIMCO Bunker Terms 2018 in May, where the organisation introduced a set of revised terms.

The Committee charged with reviewing BIMCO’s existing bunker terms included Michael Hope from North’s FD&D Department along with cross-industry personnel from maritime law, bunker suppliers, and shipowners.

“The goal of the revised terms was to create a balanced set of terms that could be adopted by both suppliers and buyers of bunkers with minimal changes and to replace or cut down the large number of supplier’s terms and conditions used in the industry,” says BIMCO.

“As such, the new terms provide comprehensive provisions regarding claims management for quantity, quality and delay claims. They also provide a liability cap which sets a default limit of liability for the other party at either the invoice value or US$500,000, whichever is higher. The parties can, however, increase that figure by mutual agreement.

“The new terms includes an innovative “election sheet” which forms part of the contract for the supply of bunkers in which the parties can make certain agreed changes to the terms. These include, amongst other changes, choice of law and forum, liability cap and place of delivery.

“It is hoped that since the new bunker terms have been created by representatives on both sides of the bunker transaction that the document will be widely taken up by the industry.”

Related: BIMCO introduces updated, approved bunker contract
Related: IBIA: BIMCO Bunker Terms 2018 ‘major step in the right direction’
Related: Clyde & Co explains BIMCO’s Bunker Terms 2018 contract

Published: 20 June, 2018


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Singapore: EPS orders ammonia, LNG dual-fuel vessels from China

EPS signed one contract for a series of ammonia dual-fuel bulk carriers with CSSC Beihai Shipbuilding and another for a series of LNG dual-fuel oil tankers with CSSC Guangzhou Shipbuilding International.






Singapore-based Eastern Pacific Shipping (EPS) on Wednesday (28 February) said it signed two new contract orders in a signing ceremony in Shanghai, one for a series of ammonia dual-fuel bulk carriers with CSSC Beihai Shipbuilding and another for a series of LNG dual-fuel oil tankers with CSSC Guangzhou Shipbuilding International. 

The contracts signed cover four 210,000 dwt ammonia dual-fuel bulk carriers and two 111,000 dwt LNG dual-fuel LR2 oil tankers, expanding our fleet of green vessels on water. 

“These are pivotal for EPS, testament to our continued commitment towards the decarbonisation of shipping,” EPS said in a social media post.

Manifold Times recently reported EPS signing a contract for its first ever wind-assisted propulsion system, partnering with bound4blue to install three 22-metre eSAILs® onboard the Pacific Sentinel

The turnkey ‘suction sail’ technology, which drags air across an aerodynamic surface to generate exceptional propulsive efficiency, will be fitted later this year, helping the 183-metre, 50,000 DWT oil and chemical tanker reduce overall energy consumption by approximately 10%, depending on vessel routing.

Related: Singapore: EPS orders its first wind-assisted propulsion system for tanker


Photo credit: Eastern Pacific Shipping
Published: 1 March 2024

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LNG Bunkering

Malaysia: Port of Tanjung Pelepas completes first LNG bunkering operation

Landmark event involved the CMA CGM Monaco, a 14,024 TEUs containership operated by French shipping giant CMA CGM.






Port of Tanjung Pelepas Sdn Bhd (PTP), a joint venture between MMC Group and APM Terminals, on Wednesday (28 February) announced a significant milestone with the successful completion of its first Liquefied Natural Gas (LNG) bunkering operation. 

The landmark event involved the CMA CGM Monaco, a 14,024 TEUs (Twenty-foot Equivalent Units) capacity containership operated by French shipping giant, CMA CGM.

Tan Sri Che Khalib Mohamad Noh, Chairman of PTP in a statement remarked this latest milestone demonstrates PTP’s commitment to continuously enhance its competitive advantages in an increasingly competitive global market.

“The successful completion of our first LNG bunkering operation also underscores our unwavering commitment to sustainability and environmental leadership. We are proud to partner with Petronas Trading Corporation Sendirian Berhad (PETCO) and CMA CGM on this initiative and showcase PTP’s capabilities as a leading facilitator of clean and efficient maritime operations.”

“This milestone paves the way for further growth in LNG bunkering at PTP, contributing significantly to the decarbonisation of the maritime industry.”

Commenting on this achievement, Mark Hardiman, Chief Executive Officer of PTP stated this latest milestone further highlights PTP’s position as the largest transshipment hub terminal in Malaysia.

“In preparation for the LNG bunkering operation, PTP worked closely since March 2022 with PETCO and CMA CGM, as well as with various other related government agencies to organise table-top exercises (TTX) and workshops, before carrying out the deployment exercise.”

“The success of the bunkering operation is a result of the seamless collaboration and preparations involving rigorous safety procedures through in-depth operational and risk assessments, modelling, and validation. We thank PETCO, CMA CGM all other involved parties for their joint efforts in operationalising the bunkering capability and we welcome partners to work with us to accelerate maritime decarbonisation,” said Hardiman.

Port of Tanjung Pelepas (PTP) is Malaysia’s largest transshipment hub with the capacity to handle 13 million TEUs annually. The port delivers reliable, efficient, and advanced services to major shipping lines and box operators, providing shippers in Malaysia and abroad with extensive connectivity to the global market. PTP is currently ranked 15th among the world top container ports.


Photo credit: Port of Tanjung Pelepas
Published: 1 March 2024

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Alternative Fuels

Wallenius Wilhelmsen to order four additional methanol DF PCTCs

Newbuilds will also be ammonia-ready and able to be converted as soon as ammonia becomes available in a safe and secure way.





Wallenius Wilhelmsen PCTC order

Roll-on/roll-off (Ro-Ro) shipping company Wallenius Wilhelmsen on Tuesday (27 February) declared options to build four additional next-generation Shaper Class pure car and truck carrier (PCTC) vessels.

The 9,300 CEU methanol dual fuel vessels can utilise alternative fuel sources, such as methanol, upon delivery. They will also be ammonia-ready and able to be converted as soon as ammonia becomes available in a safe and secure way.

“Together with our customers we are committed to further shaping our industry and accelerating towards net zero. These new vessels are a vital part of that journey,” says Xavier Leroi, EVP & COO Shipping Services.

This latest commitment brings the total number of Shaper Class vessels currently on order with Jinling Shipyard (Jiangsu) to eight. Wallenius Wilhelmsen also retains further options.

The first of the Shaper Class vessels already ordered are expected to be delivered in the second half of 2026. The four additional vessels under the declared options will be delivered between May and November 2027.


Photo credit: Wallenius Wilhelmsen
Published: 1 March 2024

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