Due Diligence with respect to the seller: taking into account the market delegation and the financial situation of the sellers, the financial situation and the insurance position (see below) and participation in previous delivery issues. Are they also a physical supplier or a simple intermediary? How do they check the quality of the fuel delivered? What are their supply chain quality management procedures? Limitation and explicit exclusion of consecutive damages – many contracts limit damage and exclude repair of damages suffered. It can also be a disclaimer if there has been a mixture of bunkers! Uncertainty resulting from the OWB litigation has led BIMCO to consider revisions to its standard bunker supply contract. The audit team consists of some of the world`s largest bunker suppliers, including World Fuel Services and Dan Bunkering, as well as shipowners represented by Danish company J Lauritzen Norden. There are also contributions from the P-I sector, including the North of England P-I Club. The team will present its revised project to the BIMCO Documentation Committee and it is likely that bunker suppliers (i.e. contract suppliers) will be interested in strengthening the position set by Res Cogitans. It is likely that bunker suppliers will opt for safety by including explicit formulations that SOGA will not apply to the bunker contract, whether or not the bunkers are consumed. As a result, any money owed under the sales contract can be recovered as a mere claim and avoid potential arguments that the contract provider should not be able to recover the price from the owner, as the property has not been transferred by the physical supplier.
It also allows to continue to provide bunkers on credit terms, a key feature of the bunker subcontractor industry. Pass the scene to the right, the bunker merchant. Although they may enter into a contract directly with a physical supplier in some jurisdictions, you are more likely to accept the services of a bunker dealer. They will stock up on bunkers and you will have contracts with them… and there are the Reibe – Bunker delivery contracts are tricky little things full of pitfalls that members have to meet, especially when a quality requirement is created. The following is not an exhaustive list, but shows some of the main pitfalls: – The issue of “OW Bunkers”: if you buy directly from a physical supplier, there is less risk, but if you buy through a broker or merchant, there is a risk that he may not have paid his equivalent for the bunkers, which could lead to competing payment requests and the risk to the buyer. bankruptcy cases. It makes sense to include provisions under which sellers guarantee that they have paid for the bunkers and the buyer has the right to demand from the sellers that they have paid third parties for the bunkers before the buyer is required to pay the seller`s invoice, so that the buyer, if left un proof, can detain the sellers for payment or possession in violation. These proposals are derived from our experience in disputes and disputes related to the quality of bunkers.
It is important that buyers understand the consequences of accepting the terms of sale and that it is worth negotiating a more balanced contract. Even if the conditions are non-negotiable, the risks can be mitigated by the exercise of due diligence before the seller is selected.