Arbitration- Disputed Bunker Quantities On Delivery

Summary Prepared by Prokopios Krikris, FCIArb, Arbitrator

One of the issues in this arbitration concerned the quantity of bunkers remaining on board at the time of the Vessel's delivery to the Charterers' service.  

As per Clause 46: “An official independent surveyor will be appointed by Charterers at first loading port and last discharging port to ascertain the quantities of fuel oil and diesel oil remaining on board at delivery respectively redelivery…..”

Owners asserted that there was an error in the fuel quantities found by the surveyor by some 150 mts, which must be credited to the Owner, as otherwise the result would be unjust enrichment for the Charterer.

Charterers said that one party cannot unilaterally disavow the findings of a surveyor, adding that the Master of the ship accepted the survey figures.

Dealing shortly with this point, the panel held that clause 46 must be given full value, particularly as the ship's personnel accepted the figures shown on the survey report.

SMA 2992

Editors’ comment: Disputes concerning bunker quantities at the time of delivery and redelivery are frequently encountered in my practice. In an unreported arbitration, the vessel’s master disputed the surveyor’s figures at redelivery. The tribunal undertook a back-calculation—on the basis that the bunker survey conducted at Singapore was accurate (as accepted by both parties)—and, by reference to the noon reports, assessed whether the vessel’s fuel consumption during the short voyage to a Chinese port was consistent with the charterparty’s warranted speed. This method of back-calculation has also been applied in relation to contested bunker survey results at delivery, as reflected in certain published LMAA awards.