World Fuel Services Corporation v The Ship "Nordems" and Others - Federal Court of Appeal (Letourneau, Nadon and Trudel JJA) - 25 February 2011

(2011) 819 LMLN 3

Admiralty jurisdiction - Maritime lien - American bunker suppliers providing bunkers to Korean time charterers of German-owned vessel in South Africa - Bunker supply contract governed by American law - Whether shipowners personally liable - Whether maritime lien created on vessel - Agency - Conflict of laws

Parkroad Corporation (“Parkroad”), the Korean sub-time charterer of the Cyprus flag bulk carrier Nordems, placed an order in Korea with the plaintiff, an American bunker supplier, for the purchase of bunkers which were taken onboard the vessel in South Africa. The contract between the plaintiff and Parkroad was governed by United States law. Both the head charter and the sub-time charter prohibited the creation of liens and expressly prohibited the charterers from taking bunkers on the credit of the shipowners.