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Bunker claim case against ‘Lila Shanghai’ owner at U.S. Court of Appeals ends; Judge left with ‘feeling of unease’

‘It is undisputed that Sing Fuels furnished fuel in Port Elizabeth that enabled the M/V Lila Shanghai to continue on its way […] and it is undisputed that Sing Fuels was never paid for this fuel,’ states Judge.
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LILA SHANGHAI

The U.S. Court of Appeals on 1 July 2022 issued a judgement for Sing Fuels Pte Ltd. v. M/V LILA SHANGHAI (IMO 9541318) where the Singapore-based energy trading company Sing Fuels Pte. Ltd. (Sing Fuels) lost a bunker claim of USD 532,000 against Autumn Harvest, owner of the bulk carrier Lila Shanghai.

Judge J. Harvie Wilkinson III of the U.S. Court of Appeals came to a similar conclusion following an earlier decision issued at a United States District Court during May 2021 where the Singapore firm failed to show Costas Mylonakis, a fuel broker at Windrose Marine which it dealt with, was acting as an agent of Medmar with authority to bind the Lila Shanghai.

Documents obtained by bunkering publication Manifold Times showed Autumn Harvest chartering out the Lila Shanghai to Bostomar Bulk Shipping Pte Ltd, which in turn subchartered the vessel out to MedMar Inc., between the period of 25 April 2019 to 31 December 2019.

A default of MedMar in October 2019 prompted Sing Fuels to track the vessel from October 2019 when it was still at South Africa, to India, and then to the United Kingdom and various others ports before its arrival to the United States in April 2020 where it was eventually arrested.

“In this particular case, I agree with the majority that Sing Fuels has not met its burden of showing either actual or apparent authority on the part of Mylonakis,” stated Judge Wilkinson.

“As the majority indicates, the supplier in this case did nothing to ascertain an agency relationship between Mylonakis and the owner (Autumn Harvest) or the charterer (Medmar) of the vessel. It did not show this at the time of the transaction nor did it present testimony indicating the existence of such relationship at trial.”

“Nonetheless, I am left with a feeling of unease. It is undisputed that Sing Fuels furnished fuel in Port Elizabeth that enabled the M/V Lila Shanghai to continue on its way. It is undisputed that the vessel consumed this fuel. And it is undisputed that Sing Fuels was never paid for this fuel.

“I would not want this ruling to require too much of suppliers. And I hope that courts in the future will review with skepticism attempts to obscure or confuse agency relationships on the part of those who accept necessaries and then resist strenuously any payment for them.”

Sing Fuels on Tuesday (13 September) provided Manifold Times a statement regarding the judgement:

The decision of the US courts underscores, without dispute, the effective delivery of bunkers by Sing Fuels along with its physical supply partner and its acceptance by the Vessel operated by Medmar Ltd.

The stated judgement further underscores the Maritime Lien and the rights of the bunker suppliers to arrest the Vessel to recover unpaid dues.

As noted in the judgement, the courts warned against parties attempting to obscure contractual relationships in order to avoid paying their contractual debts.

“The use of brokering intermediaries is a very common industry practice and Sing Fuels has a legitimate claim to pursue its debts, in our opinion,” said Harald Søndergaard from Hafnia Law.

Sing Fuels will continue to pursue legal remedies to recover its unpaid dues in the higher courts in the US or in other jurisdictions.

Related: Singapore-based Sing Fuels loses bunker claim against owner of ‘Lila Shanghai’

 

Photo credit: MarineTraffic / Petros Apostolou
Published: 15 September, 2022

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Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

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July 21, 2026

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RESIZED Sora Shimazaki on Pexels

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July). 

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions. 

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

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17 hours ago

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July 21, 2026

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RESIZED Drew Beamer

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

  • That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

  • that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
  • that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
  • that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd. 

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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July 21, 2026

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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