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IBAS faces $2.15 million lawsuit over contaminated bunkers

06 Aug 2018

Meadway Shipping and Trading Singapore (Meadway) on 27 July filed a USD $2.15 million lawsuit against Integrity Bulk ApS (IBAS) at the U.S. District Court of Maryland over alleged operational damages from contaminated bunkers, according to court documents obtained by Manifold Times.

IBAS sub-chartered the M/V ASL LUNA from Meadway and was responsible for fuelling the vessel.

The vessel’s Master on 26 June pointed out to Meadway and IBAS that fuel bunkered at Balboa, Panama caused all six fuel injector pumps of the main engine fuel to seize.

Results from a fuel testing laboratory found the fuels to contain phenol of 106 ppm, above the normal level of below 100 ppm.

“Phenols have acidic content and can damage lubrication surfaces. Phenols also reduce the stability of the fuel. Presence of phenols also indicates the possible use of shale oil as cutter stock. Shale oil reduces the ignition and combustion properties of the fuel,” says the court document.

“The fuel was also found to have styrene glycol, alpha-pinene & limonene (tall oil components) & 2,4-dittertbutylphenol in the fuel. These contaminants are not normally found in bunker fuels.”

Meadway claimed the contaminated fuel caused “significant damage” to the M/V ASL LUNA of at least $2.15 million. In detail, the company is claiming for:

  • At least $54,043.76 – Over Loss of hire / hire while vessel is waiting for analysis of the bunkers between 14 to 20 July ($10,237.5/day x 5.279 days)
  • At least $51,187.50 + $4000 fuel consumed – Over loss of hire while the vessel remains idle pending next employment
  • $100,000 – Over loss due to delay in finding suitable business for the vessel
  • $500,000 – Over claimed loss of profit from head owners
  • At least $25,000 – Over vessel fuel consumption between 29 June to 20 July
  • $163,878.00 – Over purchase of unsuitable fuel from owners
  • At least $300,000 – Over possible costs associated with debunkering operations
  • $500,000 – Over possible engine and system repair costs
  • At least $500,000 – Over costs of arbitration, further unassessed damages.

Published: 6 August, 2018

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