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TKK Singapore vessel grounded due to alleged ‘improper marine fuel’

Bomin Bunker Oil Corporation and TKK Shipping taken to court by WFS subsidiary Trans-Tec.

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The Thorco Lineage, a general cargo ship owned by Singapore-based TKK Shipping, was grounded on 24 June due to ‘improper marine fuel’ supplied by Bomin Bunker Oil Corporation that caused engine failure, claims World Fuel Services (WFS) marine fuel brokerage subsidiary Trans-Tec.

Trans-Tec took both TKK Shipping and Bomin Bunker Oil Corporation (Bomin) to court on 7 August, 2018 over a dispute between the parties as to the applicable contractual terms and provisions for a marine fuel sale and damage claims arising out of the vessel grounding.

U.S. court documents acquired by Manifold Times found the Thorco Lineage lifting 680 metric tonnes (mt) of bunker fuel at the Port of Cristobal, Panama on 7 June.

“No complaints about the quality of the supplied fuel were made while the fuel was being stemmed onto the vessel or after delivery was complete,” says Trans-Tec.

On June 24 2018, the Thorco Lineage ran aground on a low lying atoll in French Polynesia after suffering an engine failure allegedly within 24 hours of switching over to the fuel supplied by Bomin, though a brokerage trade agreement with Trans-Tec.

The same day saw the charterers of the Thorco Lineage, through TKK, notifying Trans-Tec of the vessel grounding and engine failure, asserting a claim allegedly due to improper marine fuel supplied by Trans-Tec in Cristobal, Panama that was of poor quality and/or of the wrong fuel specifications agreed to by the parties.

Trans-Tec in turn notified Bomin of the vessel grounding and TKK’s claim; in response, Bomin advised Trans-Tec that the claim was over the 14-day time bar pursuant to a provision in Bomin’s General Conditions of Sale and Delivery contract.

Trans-Tec, in regards to the ground, also sent a surveyor to the Thorco Lineage to investigate the loss and alleged damages.

However, TKK “failed to cooperate with Trans-Tec by, including but not limited to, restricting Trans-Tec’s surveyor’s access to the Thorco Lineage, its crew, its records and samples of the fuel on board.”

In summary, Trans-Tec’s complaint against TKK and Bomin are as follows:

  • Count I – Breach of contract – Failure to corporate (TKK)
  • Count II – Breach of contract (Bomin)
  • Count III – Negligence (Bomin)
  • Count IV – Common Law Indemnity (Bomin)
  • Count V – The marine fuel sale to Trans-Tec and any loss, damages or claims arising out of the sales or vessel grounding are governed by the Bomin confirmation and not Bomin’s general conditions (Bomin)
  • Count VI – Any loss, damages, or claims arising out of the sale or vessel grounding are not time barred (Bomin and TKK)
  • Count VII – The marine fuel sale to TKK and any loss, damages, or claims arising out of the sale or vessel grounding are governed by the TKK confirmation, the framework agreement, and the World Fuel Services Marine Group of Companies General Terms and Conditions (TKK and Bomin)

Photo credit: Marine Nationale
Published: 14 August, 2018

 

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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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Vessel Arrest

Singapore: Comoros-flagged container ship “Race I” placed under Sheriff’s arrest

Ship, formerly known as “Wisdom Grace”, was added to the list of vessels under Sheriff’s arrest in Singapore’s court system; arrest was made on behalf of Oon & Bazul LLP.

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Singapore: Comoros-flagged container ship “Race I” placed under Sheriff’s arrest

Comoros-flagged container ship Race I was arrested in Singapore waters on Friday (24 November). 

The 18,193 DWT vessel, formerly known as Wisdom Grace, was added to the list of vessels under Sheriff’s arrest in Singapore’s court system. 

According to the list, the vessel was arrested at 11.48pm and the arresting solicitor listed was law firm Oon & Bazul LLP. The ship is currently held at the Eastern Anchorage. 

No details regarding the reason behind the arrest were provided in the list. 

Photo credit: MarineTraffic / Frank-Peter Mecklenbeck
Published: 28 November, 2023

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Winding up

Singapore: Final meeting scheduled for Teras Conquest 8 Pte Ltd

Final meeting of the company and creditors will be held at 8 Wilkie Road, #03-08 Wilkie Edge, Singapore 228095 through an audio-visual conference on 27 December.

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RESIZED Drew Beamer

The final meeting of Teras Conquest 8 Pte Ltd has been scheduled to take place on 27 December, according to the company’s liquidators on a notice posted on Monday (27 November) on the Government Gazette.

The final meeting of the company and creditors will be held at 8 Wilkie Road, #03-08 Wilkie Edge, Singapore 228095 through an audio-visual conference at 10.30 am.

The meetings are being held for the purpose of having an account laid before the members showing the manner in which the winding up has been conducted and the property of the respective company disposed of and of hearing any explanation that may be given by the Liquidators.

The following are details of the liquidators:

Ng Kian Kiat
Goh Wee Teck
Liquidators
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095

Related: Singapore: Teras Conquest 8 Pte Ltd to be wound up voluntarily
Related: Singapore: Creditors’ meeting scheduled for Teras Conquest 8 Pte Ltd

Photo credit: Drew Beamer
Published: 28 November, 2023

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