The Maritime Advocate-Issue 659



1. UK Supreme Court: Whether a Bunker Supply Contract is a Contract
of Sale
2. London Marine Hull Clauses and Claims–A Suitable Case for Counselling?
3. IBIA Develops Standard Operating Procedures for Surveyors
4. SOLAS Container Weight Verification
5. Esperanto: the Language that Never Was
6. People and Places

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1. UK Supreme Court: Whether a Bunker Supply Contract is a Contract
of Sale

The latest case to appear in David Martin-Clarks Case Notes relates
to a decision of the UK Supreme Court in the case of PST Energy 7 Shipping
LLC & Product Shipping and Trading SA v OW Bunker Malta Limited
& ING Bank NV, the “Res Cogitans”. The Supreme Court upheld
the decisions of the Court of Appeal and and of the High Court to the
effect that the bunker supply contract in this case was not a contract
of sale but a sui generis [of its own special type] contract. Significantly,
it allowed Owners the right potentially to consume the bunkers for propulsion
before paying for them.
Consequently, Owners could not escape paying for the bunkers by arguing
that the Sellers had failed to transfer property in the bunkers to them,
which property the Sellers did not have as they had not paid their own

This note has been contributed by Gan Boon Eng, Justin, solicitor (Hong
Kong), advocate & solicitor (Singapore – non-practising).

read the case note here:-


2. London Marine Hull Clauses and Claims–A Suitable Case for Counselling?

Andrew Paton’s recent Chairman’s address to the annual meeting of the
Association of Average Adjusters aimed some constructive criticism at
the hull insurance market in London. He mooted some reforms to end the
‘muddle’ over coverages. London insurance market hull clauses
and the cover and services they provide for handling claims “is
a relationship which is in need of some assistance,” he observed.

Mr Paton told the meeting at Lloyd’s Old Library on May 12th, 2016
that behind the choice of his title was his call for reform or review
of some key London market clauses, and that the expertise of claims
practitioners could help substantially to take such a project forward.

A summary of his observations can be read here:-


3. IBIA Develops Standard Operating Procedures for Surveyors

Claire Sneddon has sent us the following note:-

The International Bunker Industry Association, (IBIA) has developed
Standard Operating Procedures (SOP) for surveyors to help the industry
manage new challenging regulations, standardise best practice and build
trust in the market.

The IBIA guidelines have been developed in direct response to the introduction
of the Singapore Mass Flow Meter (MFM) Technical Reference or TR 48:2015
which was launched on 16 February 2016, in support of the mandatory
use of MFM systems for all marine fuel oil (MFO) deliveries in Singapore
with effect from 1 January 2017.

The Marine and Port Authority of Singapore (MPA) requires all bunker
suppliers, bunker craft operators and bunker surveyors to comply with
the requirements and procedures of TR 48:2015 as of 1 June 2016 when
using bunker tankers where MFM systems are already installed.

The new MFM requirements will increase the overall efficiency of the
bunker fuel delivery process, while improving the port bunkering capacity
and port efficiency, increasing productivity and reducing administrative
processes. Singapore has implemented the changes now but ports around
the world will follow.

The transition will be challenging, which is why IBIA has developed
the SOP for bunker surveyors, to support the new regulatory requirements
and to standardise practice for bunker delivery by mass flow meter to

The IBIA guidelines have been drafted with the practical input of several
international bunker surveying companies, and are now open to broader
consultation, with the intention that the SOPs will be promoted and
adopted as operational best practice across the industry.

IBIA is inviting its members to get involved in the wider consultation
process by contacting IBIA in Asia’s Regional Manager Simon Neo at:-

The standard operating procedures and the requirements will not supersede
any agreement or guidelines contained in any contract, or applicable
recommended practices of regulatory or standard bodies, they will not
conflict with safety and environmental considerations or local conditions,
they are simply to develop and promote industry best practice.

IBIA intends to launch and share the final approved SOP with the industry
by June 2016.

_____________________________________________________________________________________…………………….+44 (0)20
3326 4514

4. SOLAS Container Weight Verification

The International Maritime Organization (IMO) has amended the Safety
of Life at Sea (SOLAS) Convention to require that a packed container’s
gross weight be verified before the container can be loaded on board
a ship

The new rule will come into force on 1 July 2016 and will apply globally.
In a series of three articles, Elizabeth Turnbull and Marcia Perucca
of Clyde & Co have examined how the industry is preparing for the

In the first article of the series they looked at the obligations placed
on shippers. See:-

In the second article, they considered the implications for carriers.

In this third and final article, they highlight the impact on port
terminals. See:-


5. Esperanto: the Language that Never Was

The current edition of Prospect, a journal of ideas, contains a lively
piece by a certain Edward Docx on the synthetic language of Esperanto,
a means of communication which conceiveably ought to be of interest
to the world’s maritime classes. Once upon a time it had a huge following
in post imperial China–language reform always seems to feature in the
speculations of intellectuals in the middle Kingdom. We wonder if any
of our Readers have had brushes with Esperanto. Do tell.


6. People and Places

Braemar Adjusting has announced the promotion of Dubai-based Sam Foster
from Senior Adjuster to Director.


Australian firm Colin Biggers & Paisley has added to its Transport
& Logistics practice with shipping partner Stephen Thompson and
Special Counsel Richard Arrage joining the practice from K & L Gates
(formerly Middletons in Australia) in June. Both Stephen and Richard
have an excellent reputation and client following in the shipping industry
and they will now work alongside CMI President Stuart Hetherington in
Sydney and Andrew Tulloch and Andrew Probert in Melbourne.


The American P&I Club has won the Lloyd’s List North American
Maritime Services Award for 2016. In a news release, Lloyd’s List
said: “The Maritime Services Award – General is bestowed on
an organization, company or individual for an exceptional achievement
or contribution to any service sector of the North American maritime
industry and the judges were exceedingly impressed with the American
P&I Club’s recent growth.”

Established in 1917 as the American Steamship Owners Mutual Protection
and Indemnity Association, Inc., The American Club for much of its history
insured only U.S.-based shipowners. But in the mid-1990s the club adopted
a new strategy of international growth and diversification. Since then,
The American Club has undergone considerable change. Milestones over
the period include: a fivefold increase in entered tonnage; fourfold
premium growth; eightfold growth in funds under investment and a tenfold
increase in free reserves; a broad and expanding international membership,
47% of its revenue now coming from EMEA, 32% from the Americas and 20%
from Asia. Twenty years ago, less than 10% of its income came from non-U.S.

Besides its headquarters in downtown New York, The American Club also
has offices in London, Athens, Hong Kong and Shanghai, and a newly opened
office in Houston. The American Club is also a full member of the International
Group of P&I Clubs.


From the Avo Archive

The website of this newsletter contains all the editorial material
since the inception of the Maritime Advocate as a print based quarterly
in 1997 under the founding aegis of John Guy, Chris Hewer and Manfred
Arnold. Readers can go to the site and search the database on the home
page in its entirety. If you are looking for an old case, an old controversy
or you would just like to see how many times you and your firm have
featured in our annals feel free to access the archive. It is like this
e-zine, free to Readers and we always appreciate the support of advertisers
and sponsors.

We were unable to locate a single reference to Esperanto, but "lingua
franca" produced this short piece which appeared in Issue 77 on
14th October, 2002:-

Cargo English

SPEAKING of FIATA, in Istanbul last week the organisation held its
Congress 2002, the main theme of which was, "Is Airfreight still
the future?"
The FIATA website says, "The general consence was that the airlines
charge reasonable rates enabling them to comfortably cover their costs."

How does this sit with the presentation by Kathleen Ferreira of IATA’s
course on ‘Cargo English’, the aim of which is to "deliver to the
especially in areas where English is not the lingua franca, the colloquial
correct usage of expressions in Airfreight"?


Cartoon–Container Weighing

Courtesy of UASC comes this informational cartoon on VGM


Just So

There were three men at a bar. One man got drunk and started a fight
with the other two men.

The police came and took the drunk person to jail.

The next day the man went before the judge.
The judge asked the man, "Where do you work?"
The man said, "Here and there."

The judge asked the man, "What do you do for a living?"
The man said, "This and that."

The judge then said, "Take him away."
The man said, "Wait, judge when will I get out?"
The judge said to the man, "Sooner or later."

[Source: Paul Dixon]


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