Lloyd's Maritime Law Newsletter
London Arbitration 7/22
Contract – Supply of bunkers – Bunker company contracting to sell bunkers to shipowner – Seller procuring physical supply of bunkers to vessel by local supplier – Seller getting into financial difficulties – Shipowner paying local bunker supplier rather than seller – Whether payment discharged shipowner’s liability to pay seller – Whether seller entitled to payment from shipowner – Whether shipowner entitled to rely on defence of total failure of consideration – Whether shipowner entitled to set off cross-claims against seller
On 27 October 2014 the owners of the subject vessel contracted with a bunker supplying company (X Co) for the supply of fuel
oil and gasoil for delivery to the vessel at a specified port (the Contract).