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Kairos Oil Trading makes claim against “Bravely Sincerity” over cargo delivery

31 Dec 2019

Singapore-based Kairos Oil Trading Pte Ltd. (KOT) has initiated a claim totalling approximately USD 1.3 million against the owner and/or demise charterer of the vessel Bravely Sincerity at the High Court of the Republic of Singapore on 21 November 2019.

The firm on 2 November 2018 chartered the 14,497 dwt tanker from a Singapore company to ship 95,000 barrels of 0.005% sulphur gasoil from the Port of Tanjung Pelepas, Malaysia to Davao, The Philippines to its customer, according to court documents obtained by Manifold Times.

On 9 November 2018 while en route to its destination, the engine room of the vessel caught on fire leading to Bravely Sincerity being towed back to Singapore for repairs.

The vessel returned back to service and proceeded to sail to Davao on 27-28 December 2018; however, it encountered problems with its machinery and needed to sail back to Singapore again for repairs.

As such, the Bravely Sincerity could not deliver its gasoil cargo to Davao, The Philippines.

Additionally, KOT had to purchase a bridging cargo in order to satisfy its contractual obligations to the buyer due to the interruptions. The buyer also rejected the vessel for delivery at any of its terminals.

The Bravely Sincerity was eventually repaired and subsequently returned back to service after successful sea trials on 10 February 2019.

The original cargo carried by the vessel was transferred to another ship at Nipah, Indonesia on 22 February 2019 and later sold at a loss of USD 953,019.14 to another buyer due to the difference between the purchase and eventual sale price.

KOT also incurred costs and expenses amounting to USD 203,503.90 from financing of the original cargo during the entire period from purchase to sale.

Including other costs and expenses, such as surveyor fees and STS operation of the original cargo in Indonesia, KOT calculated its total loss and damage to be approximately USD 1.3 million.

Photo credit: Manifold Times
Published: 31 December, 2019

 

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