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Lloyd's Maritime and Commercial Law Quarterly

AUSTRALIAN BUNKER ARREST

The Genco Leader

Metall Und Rohstoff Shipping v. Owners of Bunkers on Board the Ship MV Genco Leader 1 did not decide whether, and if so in what circumstances, bunkers can be arrested in Australia under the Admiralty Act 1988 (the “Act”). However, it does provide some guidance in that regard. The decision is also of interest because the court set aside a writ in rem and an arrest warrant on the basis that the facts did not bring them within the scope of the particular section of the Act relied upon to give the court jurisdiction to arrest bunkers. Furthermore, the case exemplifies the willingness and desire of the Federal Court to move with expedition where the commercial needs of the parties require that to happen.

The proceedings

The bunkers on board the Genco Leader were arrested on 10 August 2005 when the vessel was waiting to berth at Fremantle to load a cargo of wheat. The defendant, Maywal Ltd, was the owner of the intermediate fuel oil on board the Genco Leader . It had been the time charterer of the m.v. Tolmi in late 2003 from the plaintiff. There was a dispute relating to that charterparty which was being arbitrated in London. The arrest of the bunkers on board the Genco Leader was for the purpose of obtaining security from the charterer for that

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