Connect with us

Business

DS Norden in USD 2 million claim against Global Energy Trading over alleged off spec bunker fuel

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.

Admin

Published

on

5bea4f85e134f 1542082437

Lawyers representing shipping firm Dampskibsselskabet NORDEN A/S (DS Norden) and Singapore bunker supplier Global Energy Trading Pte Ltd (Global) met at a pre-trial conference organised by the High Court of the Republic of Singapore on Tuesday (17 November) to discuss matters relating to a bunker claim, according to documents obtained by the Singapore bunkering publication Manifold Times.

Claim by Dampskibsselskabet NORDEN

DS Norden was seeking for a total claim of USD 2 million (exact: USD 2,066,063.03) and SGD 22,000 (exact: SGD 22,283.00) from Global over loss and damages from the supply of alleged off-spec low sulphur 380 centistokes (cSt) 0.5% bunker fuel to Nord Gemini, Nord Titan, Ocean Rosemary, and Luzern at Singapore port in or around January 2020.

About 997.985 metric tonnes (mt) of the material was delivered to Nord Gemini on 4 January; 359.102 mt to Nord Titan on 17 Janaury; 1,196.303 mt to Ocean Rosemary on 21 January, and 498.407 mt to Luzern on the same day (21 Janaury).

“The Bunkers supplied and/or delivered by the Defendant were unusable (in fact worse than unusable given that they were potentially or actually damaging to the respective Vessels’ engines) and the Plaintiff is entitled to the return of the price paid on a total failure of consideration and/or in restitution,” alleged lawyers in DS Norden’s statement of claim.

The bunker orders were placed through global commodities trading and logistics house Trafigura Pte Ltd., according to the documents. The orders under the ISO 8217:2010 fuel quality standard specified a maximum sulphur content of 0.50% and Total Sediment Potential (TSP) limit of 0.10% amongst other parameters.

An initial fuel analysis conducted by the owners of the four vessels after respective bunker deliveries found fuel samples to be off-spec.

Subsequent joint analysis conducted by Trafigura, DS Norden and the owners of the four vessels claimed an excessive TSP level for the bunkers supplied and delivered by Global; in addition, fuel delivered to the Luzern had excessive sulphur levels.

  • Nord Gemini: TSP: 0.17% (Supplier’s sample)
  • Nord Titan: TSP: 0.17% (Supplier’s sample); 0.11% (Vessel’s sample);
  • Ocean Rosemary: TSP: 0.12% (Supplier’s sample); 0.14% (Vessel’s sample);
  • Luzern: (a) TSP >0.50% (Vessel manifold); 0.35% (Vessel tank); (b) sulphur content: 1.05% (Vessel manifold); 0.79% (Vessel tank).

Defence of Global Energy Trading

Lawyers representing Global stated: “Any remedy DS Norden may have lies in a contractual claim against Trafigura, which DS Norden is actively pursuing against Trafigura through arbitration proceedings in London.”

They added there was no duty of care by Global to DS Norden, amongst other arguments.

“There is altogether no basis for any claim (in negligence or otherwise) by DS Norden against Global,” the lawyers explained.

“DS Norden's attempt to found a claim in negligence against Global is an attempt to circumvent its contractual bargain with Trafigura.

“DS Norden chose to contract with Trafigura rather than Global, and should not be allowed to better its bargain and sidestep the risk exposure negotiated and agreed between parties. In the premises, the present claim is frivolous, vexatious, and an abuse of court process.”

Further tests of bunker samples conducted by Global with a SAC-SINGLAS Accredited Laboratory later revealed the following results:

  • Nord Gemini: TSP 0.10% m/m (within spec)
  • Nord Titan: TSP 0.09% m/m (within spec)
  • Ocean Rosemary: **
  • Luzern: TSP 0.29% m/m and sulphur content 0.96% m/m (exceeding spec)

**Test results not shared in court document

Testing done on the samples obtained at the time of delivery and retained by Global indicated the bunkers supplied to Nord Gemini, Ocean Rosemary and Nord Titan conformed to the specification required by the Bunker Standards and Regulations, said lawyers.

In summary, Global’s legal team stated, amongst others, that:

DS Norden's present claim against Global is an attempt to circumvent:

  • the contractual bargain that it had made with Trafigura;
  • the risk exposure that it had chosen through the terms of its contract with Trafigura;
  • the fact that it had chosen not to contract with a licensed bunker supplier in Singapore for the delivery of the bunker fuel to the Four Vessels; and
  • the fact that it had not contracted directly with Global.

“Global denies DS Norden is entitled to any of the reliefs claimed,” they stated.

 

Photo credit: Manifold Times
Published: 20 November, 2020

Continue Reading

LNG Bunkering

Malaysia: Port of Tanjung Pelepas achieves milestone with first SIMOPS LNG bunkering op

LNG bunker vessel “MT Paolina Cosulich” refuelled LNG dual-fuel container ship “Bangkok Express”, operated by Hapag-Lloyd AG at the port.

Admin

Published

on

By

Malaysia: Port of Tanjung Pelepas achieves milestone with first SIMOPS LNG bunkering op

Port of Tanjung Pelepas (PTP) on Sunday (16 February) said it successfully conducted its first Simultaneous Operations (SIMOPS) of liquefied natural gas (LNG) bunkering.

This significant achievement involved the LNG dual-fuel container ship Bangkok Express, operated by Hapag-Lloyd AG, and the LNG bunker vessel MT Paolina Cosulich.

“This milestone underscores PTP's dedication to enhancing our competitive edge in the global market by facilitating clean and efficient maritime operations,” the port said in a social media post.

“We are proud to have partnered with PETCO Trading Labuan Co., Ltd. (PTLCL) and Hapag-Lloyd on this pioneering initiative.”

Manifold Times previously reported the port also achieving its first LNG bunkering operation last year. 

The port completed its first-ever ship-to-containership methanol bunkering operation in November last year. 

Manifold Times previously reported the port achieving its first LNG bunkering operation last year. 

Related: Malaysia: Port of Tanjung Pelepas achieves milestone with first methanol bunkering op
Related: Malaysia: Port of Tanjung Pelepas completes first LNG bunkering operation
Related: Malaysia: Tanjung Pelepas selected to join P41 initiative to achieve green bunkering hub ambition
Related: Port Of Tanjung Pelepas joins G2G decarbonisation scheme between Malaysia and Australia

 

Photo credit: Port of Tanjung Pelepas
Published: 18 February, 2025

Continue Reading

LNG Bunkering

Kunlun Energy wraps up first STS offshore LNG bunkering operation in Hong Kong

Kunlun Energy, a red-chip controlled by PetroChina, said its bunkering vessel refuelled container ship “Zim Haifa Blue Stone” with 2,200 metric tonnes of LNG bunker fuel in a seven-hour operation.

Admin

Published

on

By

Kunlun Energy wraps up first STS offshore LNG bunkering op in Hong Kong

Kunlun Energy, a red-chip controlled by PetroChina, on Monday (17 February) said it completed Hong Kong’s first ship-to-ship (STS) offshore liquefied natural gas (LNG) bunkering operation on 14 February. 

Kunlun Energy's 8,300 m3 capacity LNG bunkering vessel refuelled the container ship Zim Haifa Blue Stone with 2,200 metric tonnes (mt) of LNG in a seven-hour operation. 

The bunkering vessel involved in the operation is operated by a Kunlun Energy subsidiary. 

According to a PetroChina official, the receiving vessel Zim Haifa Blue Stone departed from Busan, South Korea, on 3 February and passed through Qingdao, Shanghai, and Ningbo before arriving in Hong Kong on 12 February. 

Its final destination is Istanbul, Turkey. This refuelling operation can meet the ship's fuel needs for the entire journey. 

“The successful implementation of this "ship-to-ship" offshore LNG bunkering operation is another example of Kunlun Energy's efforts to help improve the international shipping hub of the Guangdong-Hong Kong-Macao Greater Bay Area,” Kunlun Energy said. 

“It is expected to attract more green-fuel vessels to pass through Hong Kong, encourage more environmentally friendly companies to conduct business in Hong Kong, accelerate transformation and technological innovation in the shipping industry, and promote the construction of Hong Kong as a green and smart port.”

“This operation holds significant importance for Hong Kong's push toward a green and sustainable shipping industry.”

 

Photo credit: Kunlun Energy
Published: 18 February, 2025

Continue Reading

Biofuel

Wallenius Wilhelmsen successfully completes its first biofuel bunkering trial in Japan

“M/V Tamesis” bunkered 400 metric tonnes of B24 VLSFO blended biofuel, supplied by Mitsubishi Corporation Energy at Port of Yokohama.

Admin

Published

on

By

Wallenius Wilhelmsen successfully completes its first biofuel bunkering trial in Japan

Wallenius Wilhelmsen on Monday (17 February) said it has successfully completed its first biofuel bunkering trial at the Port of Yokohama in Japan.

M/V Tamesis bunkered 400 metric tonnes (mt) of B24 VLSFO blended biofuel, supplied by Mitsubishi Corporation Energy. 

This milestone is part of Wallenius Wilhelmsen’s ongoing efforts to reduce its environmental impact and promote sustainability in shipping.

“As part of our commitment to reducing greenhouse gas emissions, we have expanded our locations for biofuel supply. Since 2023, the expansion has included key ports in Belgium, Korea and Singapore,” the company said.

“Expanding to Japan enhances our ability to operate more efficiently and sustainably across our global network.”

Wallenius Wilhelmsen has set ambitious emission reduction targets to reach net-zero by 2040. This includes a 40% absolute reduction of well-to-wake greenhouse gas emissions by 2030 compared to our 2022 baseline, as approved by the Science Based Targets initiative.

Yasuyuki Sakurai, Senior Manager, the Orcelle Accelerator taskforce at Wallenius Wilhelmsen, said: “Achieving these targets require a major shift in energy sources from conventional fuels to low and zero-carbon alternatives. Expanding supply locations and securing sufficient biofuels remain a priority, and we are pleased to have conducted our first B24 VLSFO blended biofuel bunkering trial in Yokohama.”

“While our Reduced Carbon Service customers fully support our mass-balance concept, ensuring sufficient biofuel usage across our entire fleet and trade lanes is key to achieving our long-term sustainability goals.”

Mitsuo Ueda, General Manager of Mitsubishi Corporation Energy, said: “In anticipation of growing demand for biofuel in the marine sector, we have begun storing biofuel at our oil terminal in Onahama (Fukushima Prefecture) and supplying B24 in Tokyo Bay using our barges.:

“We deeply admire Wallenius Wilhelmsen’s leadership in the decarbonisation of the shipping industry and remain committed to playing our part in creating a more sustainable future. We will continue striving to meet industry needs through a stable supply of biofuels and contribute to the realisation of a carbon-neutral society.”

This milestone was achieved through close collaboration between Wallenius Wilhelmsen’s Energy Sourcing team and the Orcelle Accelerator taskforce, which has worked for the past two years to establish biofuel bunkering capabilities in Japan.

 

Photo credit: Wallenius Wilhelmsen
Published: 18 February, 2025

Continue Reading
Advertisement
  • Zhoushan Bunker
  • Sea Trader & Sea Splendor
  • EMF banner 400x330 slogan
  • SBF2
  • RE 05 Lighthouse GIF
  • Aderco Manifold Website Advert EN
  • Consort advertisement v2
  • v4Helmsman Gif Banner 01

OUR INDUSTRY PARTNERS

  • E MARINE LOGO
  • SEAOIL 3+5 GIF
  • Singfar advertisement final
  • HL 2022 adv v1
  • Triton Bunkering advertisement v2


  • Energe Logo
  • Synergy Asia Bunkering logo MT
  • PSP Marine logo
  • Mokara Final
  • Uni Fuels oct 2024 ad
  • Auramarine 01
  • pro liquid
  • metcore
  • Trillion Energy
  • CNC Logo Rev Manifold Times
  • LabTechnic
  • 400x330 v2 copy
  • VPS 2021 advertisement
  • Advert Shipping Manifold resized1
  • Headway Manifold

Trending