Singapore-listed Hoe Leong Corporation Limited (HLC) on Friday (18 January) said its subsidiary Arkstar Ship Management Pte Ltd (ASM) had been ordered by the High Court of Hong Kong Special Administrative Region to pay Hong Kong-based bunkering firm Chimbusco Pan Nation Petro-Chemical Co. Ltd (Chimbusco PN) its bunker claim of US $335,858.
ASM on 4 September 2015, in a legal suit initiated by Chimbusco PN, was summoned to the court over a failed payment in a sale contract relating to the supply of marine fuel oil to one of its vessels.
It claimed Chimbusco PN allegedly supplied contaminated bunker fuel to its vessel, resulting in the vessel being deferred from commencement of chartering services for a few months.
However, the court on 11 January 2019 “ruled against ASM on the basis that ASM’s defence and counterclaim was excluded according to the interpretation of the Contract and the factual finding that the bunkers were not contaminated”, according to HLC.
As such ASM has been order to pay Chimbusco PN a principal sum in the amount of US$335,858.31, together with interest at Prime Rate plus 1% from a date 30 days after the date of the invoice made on 17 February 2014 until the date of Judgment (11 January 2019) and at the Judgment Rate (i.e. 8.088% per annum).
Further ASM has to pay the cost of Chimbusco PN on a party-to-party basis.
“ASM is currently seeking legal advice and exploring all of its options in respect of the above-mentioned Order of the Court,” concluded a statement from Hoe Leong Corporation.
Published: 21 January, 2019
The newly launched Code of Best Practices – Commodity Financing guidelines will be the new ‘reference point’ taken by banks when considering to give trade finance to trading houses, believes Ian Teo.
Captain Daknash Ganasen, Senior Director (Operations & Marine Services), MPA, provides direction on what should players do when providing bunker fuel to a COVID-19 infected ship, and more.
Garren Hay will be responsible for sales of the PANOLIN range of Environmentally Acceptable Lubricants for the Singapore sole distributor agent Gealubes Consulting & Trading Pte Ltd.
Universal Alliance, BMS United, Digiland International, Goodwood Associates, Southernpec (Singapore), and Taigu Energy were involved in alleged circular fictitious trades of fuel oil during July 2015.
Bunker orders of ISO 8217:2010 spec LS 380 cSt 0.5% for Nord Gemini, Nord Titan, Ocean Rosemary, and Luzern were placed through global commodities trading and logistics house Trafigura Pte Ltd.
While Covid-19 concerns are important, Captain Rahul Choudhuri was quick to note this does not mean bunker fuel related issues have indeed disappeared from the shipping sector.