{"id":5657,"date":"2024-10-31T10:36:05","date_gmt":"2024-10-31T02:36:05","guid":{"rendered":"https:\/\/yhalaw.com.my\/?p=5657"},"modified":"2024-10-31T10:38:39","modified_gmt":"2024-10-31T02:38:39","slug":"admiralty-in-rem-shipping-fuel-or-freight-court-clears-the-air-on-global-falcon-bunker-dispute","status":"publish","type":"post","link":"https:\/\/yhalaw.com.my\/zh\/admiralty-in-rem-shipping-fuel-or-freight-court-clears-the-air-on-global-falcon-bunker-dispute\/","title":{"rendered":"ADMIRALTY IN REM &#8211; SHIPPING \u2014 FUEL OR FREIGHT? COURT CLEARS THE AIR ON GLOBAL FALCON BUNKER DISPUTE"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Summary and Facts<\/h3>\n\n\n\n<p>In <em>Global Falcon<\/em> [2024] MLJU 1378, Meck Petroleum DMCC (&#8220;Meck&#8221;) supplied high-sulphur fuel oil (HSFO) to the vessel <em>Global Falcon<\/em> and subsequently claimed USD 1.3 million for unpaid bunkers. Meck initiated admiralty proceedings to arrest the vessel, asserting that the HSFO qualified as goods supplied for the vessel&#8217;s &#8220;operation or maintenance,&#8221; thus entitling them to a maritime lien.<\/p>\n\n\n\n<p>However, the HSFO supplied had a sulphur content of 3.03%, exceeding regulatory limits for operational fuel use, and was loaded into the vessel\u2019s cargo tanks rather than fuel tanks. The <em>Global Falcon<\/em> lacked scrubbers to process high-sulphur fuel, and the quantity of HSFO supplied was inconsistent with the vessel\u2019s operational needs. Evidence later showed the HSFO was transferred to another vessel, indicating it was intended as cargo rather than operational fuel. Based on these factors, the court questioned if Meck\u2019s claim met the admiralty jurisdiction requirements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Legal Issues<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Qualification as Goods for Operation or Maintenance<\/strong>: Did the HSFO qualify as &#8220;goods or materials supplied for the operation or maintenance&#8221; of the vessel under Section 20(2)(m) of the UK Senior Courts Act 1981 (&#8220;UK SCA 1981&#8221;)?<\/li>\n\n\n\n<li><strong>Admiralty Jurisdiction to Arrest the Vessel<\/strong>: Did the court have admiralty jurisdiction to arrest the vessel based on the HSFO supply?<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">Court Findings<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The court concluded that the HSFO, with a 3.03% sulphur content exceeding operational fuel limits and loaded into cargo tanks, was not meant for the vessel&#8217;s operation or maintenance. This conclusion was supported by:\n<ul class=\"wp-block-list\">\n<li>The vessel\u2019s lack of scrubbers to utilize HSFO as fuel.<\/li>\n\n\n\n<li>The quantity of HSFO supplied, which far exceeded the vessel\u2019s operational fuel capacity.<\/li>\n\n\n\n<li>Evidence showing the HSFO was discharged to another vessel, indicating it served as cargo, not operational fuel.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>For admiralty jurisdiction to be valid, the claim must meet Section 20(2)(m) or (n) of the UK SCA 1981: \u201csupplied to a ship for her operation or maintenance\u201d or &#8220;for the construction or repair of equipment of a ship or in respect of dock charges or dues.&#8221;<\/li>\n\n\n\n<li>The court held that Meck&#8217;s claim did not satisfy Section 20(2)(m) of the UK SCA 1981, as the HSFO was neither used nor intended for the vessel\u2019s operation or maintenance. As a result, the court set aside the Warrant of Arrest, ordered the vessel&#8217;s immediate release, and granted the owners liberty to seek damages for wrongful arrest.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Reference Cases<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Meck Petroleum DMCC v The Owners And\/Or Demise Charterers Of The Ship Or Vessel &#8220;Global Falcon&#8221; Of The Port Of Cook Islands<\/em> [2024] MLJU 1378<\/li>\n\n\n\n<li><em>UK Senior Court Act 1981<\/em> Section 20(2)(m) &amp; (n)<\/li>\n\n\n\n<li><em>The River Rima<\/em> [1998] 2 Lloyd\u2019s Law Rep 193<\/li>\n\n\n\n<li><em>Port of Geelong Authority v The Ship &#8220;Bass Reefer&#8221;<\/em> 109 ALR 505<\/li>\n\n\n\n<li><em>Supreme Court Act 1981<\/em><\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a decisive ruling on the Global Falcon bunker dispute, the court dismissed Meck Petroleum&#8217;s admiralty claim for unpaid high-sulphur fuel, finding that the fuel was supplied not for operational purposes but as cargo. With the vessel lacking necessary equipment to use high-sulphur fuel and evidence pointing to its transfer to another vessel, the court determined that Meck\u2019s claim fell outside admiralty jurisdiction, leading to the release of the vessel and potential damages for wrongful arrest.<\/p>","protected":false},"author":1,"featured_media":5658,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1576],"tags":[1596],"class_list":["post-5657","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-admiralty","tag-demurrage-detention-charges"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ADMIRALTY IN REM - SHIPPING \u2014 FUEL OR FREIGHT? COURT CLEARS THE AIR ON GLOBAL FALCON BUNKER DISPUTE | Yew Huoi, How &amp; Associates | Leading Malaysia Law Firm<\/title>\n<meta name=\"description\" content=\"In a decisive ruling on the Global Falcon bunker dispute, the court dismissed Meck Petroleum&#039;s admiralty claim for unpaid high-sulphur fuel, finding that the fuel was supplied not for operational purposes but as cargo. With the vessel lacking necessary equipment to use high-sulphur fuel and evidence pointing to its transfer to another vessel, the court determined that Meck\u2019s claim fell outside admiralty jurisdiction, leading to the release of the vessel and potential damages for wrongful arrest.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/yhalaw.com.my\/zh\/admiralty-in-rem-shipping-fuel-or-freight-court-clears-the-air-on-global-falcon-bunker-dispute\/\" \/>\n<meta property=\"og:locale\" content=\"zh_TW\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ADMIRALTY IN REM - SHIPPING \u2014 FUEL OR FREIGHT? 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With the vessel lacking necessary equipment to use high-sulphur fuel and evidence pointing to its transfer to another vessel, the court determined that Meck\u2019s claim fell outside admiralty jurisdiction, leading to the release of the vessel and potential damages for wrongful arrest.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/yhalaw.com.my\/zh\/admiralty-in-rem-shipping-fuel-or-freight-court-clears-the-air-on-global-falcon-bunker-dispute\/\" \/>\n<meta property=\"og:site_name\" content=\"Yew Huoi, How &amp; Associates | Leading Malaysia Law Firm\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/yhalaw\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-31T02:36:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-31T02:38:39+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/yhalaw.com.my\/wp-content\/uploads\/2024\/10\/admiraltyrem.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"YHA Admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u4f5c\u8005:\" \/>\n\t<meta name=\"twitter:data1\" content=\"YHA Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"\u9810\u4f30\u95b1\u8b80\u6642\u9593\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/yhalaw.com.my\\\/admiralty-in-rem-shipping-fuel-or-freight-court-clears-the-air-on-global-falcon-bunker-dispute\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/yhalaw.com.my\\\/admiralty-in-rem-shipping-fuel-or-freight-court-clears-the-air-on-global-falcon-bunker-dispute\\\/\"},\"author\":{\"name\":\"YHA Admin\",\"@id\":\"https:\\\/\\\/yhalaw.com.my\\\/#\\\/schema\\\/person\\\/f778c60834a29c5ec215ab62d3207bef\"},\"headline\":\"ADMIRALTY IN REM &#8211; SHIPPING \u2014 FUEL OR FREIGHT? 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