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Singapore: Scorpio LR2 Pool takes Winson Oil to court over USD 13.6 million oil cargo claim from OCBC

P&I Club Steamship Mutual Underwriting Association (Europe) Limited has issued letter of undertaking to STI Orchard assuring total liability of not more than USD 17 million, show court documents.

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Photo 3 of High Court

Lawyers representing Scorpio LR2 Pool Ltd (Scorpio, the Plaintiff), in the business of providing vessel chartering services, and energy trading and bunkering firm Winson Oil Trading Pte Ltd (Winson Oil, the Defendant) will be meeting at the High Court of the Republic of Singapore on 10 June.

The legal representatives will discuss, amongst others, security between Scorpio and Winson Oil due to a letter of indemnity earlier received from the latter, according to court documents obtained by Singapore bunkering publication Manifold Times.

Scorpio receives Letter of Indemnity from Winson Oil

A central topic of the meeting will be the discussion of USD 13.6 million (exact: USD 13,608,000) worth of 36,016.480 mt Gasoil 10PPM Sulphur cargo (Subject Cargo) lifted by Winson Oil in Taiwan during February 2020, when the 10,999 dwt oil tanker STI Orchard was sub chartered from Scorpio for the operation.

In March 2020, Winson Oil requested Scorpio to order the STI Orchard to proceed to and deliver (amongst others) the Subject Cargo at Tanjung Pelapas, Malaysia via ship-to-ship (STS) discharge to the 318,445 dwt VLCC Chang Bai San to Hin Leong Trading (Pte) Ltd.

Scorpio received a letter of indemnity from Winson Oil for the STS operation, though the oil transfer between 5 to 6 March 2020 to the VLCC was conducted without production of the original BL.

OCBC claims for Subject Cargo from owner of STI Orchard

Subsequently in February 2021, Oversea-Chinese Banking Corporation Limited (OCBC) wrote to STI Orchard Shipping Company Limited, the owners of the STI Orchard, claiming to be the rightful owner of the Subject Cargo as it was in possession of the full set (3 out of 3) of the original Bill of Lading.

As such, OCBC demanded delivery of the Subject Cargo and held STI Orchard Shipping fully liable and responsible for the loss and/or non-delivery of the Subject Cargo; the bank has also obtained an Admiralty in rem Writ of Summons (HC/ADM 16/2021) which allowed it to potentially arrest and detain the STI Orchard.

Responding to OCBC’s demand, STI Orchard Shipping in March 2021 informed Scorpio of the development and required the charterer to indemnify any liability while providing security and funds to defend OCBC's claim, amongst others.

Scorpia seeking Security and Protection from Winson Oil

Scorpio, which has earlier received a letter of indemnity from Winson Oil, is now in turn seeking security from the latter in order to protect STI Orchard Shipping and itself from OCBC’s claim.

“However, the Defendant had failed and/or refused and/or neglected to provide security in the form required by OCBC despite the multiple demands by the Plaintiff for the Defendant to do so,” it states.

“The Defendant has also failed and/or refused and/or neglected to fulfil its other obligations under the LOI, including but not limited to providing the Plaintiff funds for the purposes of defending OCBC's claim in the suit HC/ADM 16/2021 commenced by OCBC against the Owners.”

Scorpio’s P&I Club Steamship Mutual Underwriting Association (Europe) Limited, meanwhile, has issued a letter of undertaking to OCBC assuring total liability of not more than USD 17 million (exact: USD 17,009,225.60) on behalf of STI Orchard Shipping and its vessel STI Orchard.

 

Photo credit: Manifold Times
Published: 25 May, 2021

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Vessel Arrest

Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

Panama-registered vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

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Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

The Malaysian Maritime Enforcement Agency (MMEA) on Tuesday (28 November) said a Panama-registered tanker has been detained for illegally anchoring in East Johor waters on 27 November.

MMEA Tanjung Sedili Zone acting director Maritime Cmdr Mohd Najib Sam said the tanker was detained by a patrol boat at 11am at 15.8 nautical miles northeast of Tanjung Penawar.

The captain of the vessel failed to produce any documents that permission had been obtained to anchor in Malaysian waters. 

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The vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

The case will be investigated under Section 491B(1)(L) of the Merchant Shipping Ordinance 1952 for anchoring without permission. If found guilty, individuals may be fined not exceeding MYR 100,000 or face an imprisonment term of not more than two years, or both.

Manifold Times previously reported law firm Oon & Bazul LLP sharing on steps shipowners should keep in mind before anchoring and conducting STS operations in Malaysian waters to avoid detention.

Related: Oon & Bazul to shipowners: Measures to take before anchoring, conducting STS ops in Malaysian waters

Photo credit: Malaysian Maritime Enforcement Agency
Published: 29 November, 2023

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Alternative Fuels

DNV paper outlines bunkering of alternative marine fuels for boxships

Third edition of its paper series focuses on LNG, methanol and ammonia as alternative bunker fuel options for containerships; explores bunkering aspects for LNG and methanol.

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DNV paper outlines bunkering of alternative marine fuels for boxships

Classification society DNV recently released the third edition of its paper series Alternative fuels for containerships, focused on LNG, methanol and ammonia as alternative bunker fuel options for containerships.

In its updated paper series, DNV examined the different alternative marine fuel options and provided an overview of the most important technical and commercial considerations for the containership sector.

It explored the bunkering technology for LNG, bunkering infrastructure for methanol, and availability and infrastructure of ammonia. 

Building on the foundation laid in the second edition, which focused on the most important aspects of methanol as a fuel, this latest third edition delves deeper  – exploring the technical intricacies and commercial considerations associated with adopting methanol as an alternative fuel for containerships.

Furthermore, it provides an overview of crucial aspects related to ammonia and discusses its potential as an alternative fuel for containerships.

Amongst others, the new edition of the paper looks at the following aspects:

  • Technical design considerations for methanol
  • Commercial implications of adopting methanol as an alternative fuel
  • Ammonia's potential as an alternative fuel
  • Availability, infrastructure and ship fuel technology for ammonia
  • Major updates based on the latest IMO GHG strategy decisions at the MEPC 80 meeting

Note: The third edition of DNV’s full paper titled Alternative Fuels for Containerships can be found here.

Related: DNV paper outlines bunkering infrastructure of alternative fuels for boxships

Photo credit: DNV
Published: 29 November, 2023

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Alternative Fuels

EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Tool is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering.

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EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Lloyd’s Register (LR) Maritime Decarbonisation Hub and Environmental Defense Fund (EDF), in collaboration with Arup, on Tuesday (28 November) introduced the Sustainable First Movers Initiative Identification Tool, a system to help shipping stakeholders align investment decisions that support the maritime energy transition away from fossil fuels.

The tool, which is presented in a preliminary findings report – The Potential of Ports in Developing Sustainable First Movers Initiatives – scores a port’s potential to produce and bunker electrofuels while delivering local environmental and community benefits in alignment with the global temperature target of 1.5 degrees Celsius set by the Paris Agreement.

“Ports can play an important role in kickstarting shipping’s decarbonisation process even before global policies are established,” said Marie Cabbia Hubatova, Director, Global Shipping at Environmental Defense Fund.

“By considering the impact sustainable first mover initiatives can have on port-side communities, climate, environment and economies, resources can be better directed to locations where these initiatives will make the biggest difference.”

With close to two billion people living near coastal zones globally, the role of, and impacts on local port communities must be intentionally considered as the sector decarbonises globally. Ports can play a crucial role in ensuring shipping decarbonisation efforts are done in a way that has positive impacts on port communities.

The preliminary phase of the Sustainable First Movers Initiative Identification Tool analyses 108 ports in the Indo-Pacific region according to five criteria including land suitability, air quality, renewable energy surplus, economic resilience and ship traffic.

It is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering. The combined criteria and scenario evaluation determines which ports have the greatest potential (high potential) for sustainable first mover initiatives to lead to significant emissions reductions and positive impacts in nearby communities, such as improved air quality and economic resilience.

“The transition to clean energy supply for shipping can be achieved only if stakeholders act together. Identifying potential port locations is the first step in this process,” said Dr Carlo Raucci, Consultant at Lloyd’s Register Maritime Decarbonisation Hub. “This approach sets the base for a regional sustainable transition that considers the impacts on port-side communities and the need to avoid regions in the Global South lagging behind.”

Regions in the Global South are fundamental in driving the decarbonisation of shipping. To make this transition effective, the rate at which different countries adopt and scale up electrofuels must be proportional to the difference in capital resources globally to avoid additional costs being passed on to local communities. Sustainable first mover initiatives can play an important role in making this happen by ensuring the sector’s decarbonisation is inclusive of all regions and by engaging all shipping stakeholders, including port-side communities.

“There’s a huge opportunity for early adopter shipping decarbonisation initiatives to unlock benefits for people and planet – shaping the way for a more equitable transition in the 2030s,” said Mark Button, Associate, Arup. “Our collective approach shows that taking a holistic view of shipping traffic, fuel production potential and port communities could help prioritise action at ports with the greatest near-term potential.”

The tool can be customised according to stakeholders’ needs and goals and is dependent on scenario desirability. The next phase of this work will include the selection and detailed assessment of 10 ports to help better understand local needs and maximise the value offered by sustainable first mover initiatives. 

LR and EDF carried out a joint study on ammonia as shipping fuel, and LR and Arup have collaborated on The Resilience Shift study focused on fuel demand for early adopters in green corridors, ports, and energy systems, amongst many other projects.

Photo credit: Lloyd’s Register
Published: 29 November, 2023

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