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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.

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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

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Business

VPS introduces new General Manager for Middle East and Africa

Dirk de Bruyn brings experience from Rio Tinto, Shell and recently TotalEnergies, and a range of local, regional and global oil, gas and energy roles across four continents.

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Dirk de Bruyn, General Manager for Middle East and Africa, VPS

Maritime decarbonisation advisory services company VPS on Monday (11 November) announced the appointment of Dirk de Bruyn as the company’s new General Manager for Middle East and Africa.

In this role, Dirk will advance VPS’s business within the region with both new and existing key clients. He will be critical to the growth of both the traditional businesses of marine fuels testing and advisory as well as playing a key role of decarbonisation of the maritime industry.

With experience gained at Rio Tinto, Shell and recently TotalEnergies, and a range of local, regional and global roles across four continents in international oil, gas and energy, Dirk brings extensive experience and knowledge in the energy transition space.

Using his extensive knowledge gained in bunker fuel and lubricants, both from a supplier and end-users’ perspective, Dirk previously led a global team focused on energy transition and decarbonisation.

“The maritime industry is changing quickly with ambitious emissions targets and decarbonisation requirements driving the introduction of new technologies and fuels into the market,” said Dr. Malcolm Cooper, CEO of VPS.

“In this dynamic landscape, we are very pleased to have Dirk on board to help VPS customers optimise their operations by understanding which new fuels to use and how to adapt to these sustainable business drivers and meet new regulations.

Dirk noted: “Whilst the industry is rightfully focussed on the path towards Net Zero, we must ensure we do not take our eye off the ball on the operational risks posed by traditional fuels.”

“Energy Transition and the path towards Net Zero is an evolving landscape. With the change in fuel types and the introduction of future fuels, it is important to provide advice and guidance to our customers whilst taking into consideration the differences in legislations.

“VPS leads the way with their technology in biofuels as well as methanol testing which is a key component to reducing our clients emissions and helping them in their journey towards Net Zero. I am excited to be part of this journey with VPS’ with an industry who is focussed on fuel transition.

“With over forty years of knowledge and experience in the marine industry, and a wide range of advanced Digital Decarbonisation platforms such as PortStats, Maress, BOND and Emsys, I have found that our team is filled with experience and determination and I look forward to adding mine into the mix.”

 

Photo credit: VPS
Published: 13 November 2024

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Business

Bunker fuel trading firm Shipergy achieves International Sustainability and Carbon Certification

ISCC certification assures Shipergy’s marine fuel offerings meet sustainability, GHG reduction, and traceability standards – aligning with upcoming FuelEU Maritime.

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London-based provider of marine fuel solutions Shipergy on Monday (11 November) said it has achieved International Sustainability and Carbon Certification (ISCC).

The ISCC certification provides assurance that Shipergy’s fuel offerings meet rigorous sustainability, greenhouse gas (GHG) reduction, and traceability standards – aligning with the EU’s upcoming FuelEU Maritime regulation effective 1 January 2025.

This regulation mandates progressive reductions in GHG intensity across all energy sources used by ships within EU waters. By achieving ISCC certification, Shipergy is now positioned to help its customers meet these regulatory standards while supporting the broader decarbonisation of the maritime sector.

“Achieving ISCC certification is a testament to Shipergy’s dedication to advancing sustainable practices in the maritime industry,” said Daniel Rose, CEO of Shipergy.

“With FuelEU Maritime on the horizon, we are proud to offer our customers a reliable source of certified sustainable fuels, enabling them to navigate the changing regulatory landscape confidently and responsibly.”

Related: Marine fuel trading firm Shipergy secures USD 15 million credit facility with DNB Bank
RelatedShipergy to set up new Singapore regional hub in major recruitment drive
RelatedSignal Group launches tech enabled bunker procurement company Shipergy
RelatedShipergy reports more than 60 bunker procurement transactions since launch
RelatedShipergy to leverage OpenAI’s ChatGPT in AI-powered, bunker fuel market report

 

Photo credit: Shipergy
Published: 13 November 2024

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Yinson GreenTech and Zeabuz to develop autonomous, remote-controlled electric marine vessels

Collaboration aims to integrate Zeabuz’s hardware and proprietary software algorithms into Yinson GreenTech’s marinEV fleet of electric vessels.

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Yinson GreenTech and Zeabuz to develop autonomous, remote-controlled electric marine vessels

Yinson GreenTech and autonomous maritime technology company Zeabuz have signed a Letter of Intent to integrate autonomous and remote-control capabilities into Yinson GreenTech's fleet of marine electric vessels.

This collaboration was formalised at the Singapore Norway Innovation Conference on 6 November. It marked a significant step towards decarbonising Singapore's maritime industry by combining the power of electrification and autonomous maritime operations.

The collaboration aims to deliver more efficient marine solutions by integrating Zeabuz's hardware and proprietary software algorithms into Yinson GreenTech's marinEV fleet of electric vessels.

Critically, by combining autonomous driving technology with electric marine vessels, this collaboration will address the maritime industry's long-term manpower challenges. It will reduce the number of crew members required onboard, making maritime operations more efficient.

Additionally, it will enhance the attractiveness of maritime jobs by introducing new, knowledge-based skillsets like artificial intelligence, machine learning, and remote operations. This aligns with the Maritime and Port Authority of Singapore's (MPA) Industry Transformation Map, particularly its focus on digitalisation.

“To fulfil Yinson GreenTech's broader vision of building a net-zero world, marinEV believes in harnessing the power of sustainable innovation through strategic partnerships," said Jan-Viggo Johansen, Managing Director of marinEV.

“Our collaboration with Zeabuz marks a significant step towards accelerating the adoption of autonomous solutions, which will not only enhance the safety and efficiency of maritime operations but also significantly reduce our environmental impact on waterways.”

“By combining the power of electrification, onboard autonomy, and remote supervisory control, we are laying a strong foundation for the future of sustainable maritime operations,” said Øyvind Smogeli, CEO and Co-Founder of Zeabuz.

“We are excited to deepen our collaboration with Yinson GreenTech to build a future of sustainable, technology-driven marine transport.”

 

Photo credit: Yinson GreenTech
Published: 12 November 2024

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