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ARTICLE · 22 JULY 2010

Bunkers - Who Pays When The Charterer Doesn't?

This case concerns a familiar situation in time charters. A bunker supplier provides bunkers to a time charterer, who has the job of ordering bunkers under the time charter.

United KingdomTransport
Anastasia Dola
Anastasia Dola

Angara Maritime Ltd v Oceanconnect UK Ltd & another (The Fesco Angara) [2010] EWHC619(QB)

This case concerns a familiar situation in time charters. A bunker supplier provides bunkers to a time charterer, who has the job of ordering bunkers under the time charter. The time charterer does not pay. The bunker supplier looks to the shipowner to pay. The supplier relies on his retention of title clause, saying that the bunkers belong to him until he gets paid. In this situation, the shipowner is often left holding the baby - especially if the charterer disappears or goes bankrupt.

However, this is not always the case, as the Fesco Angara shows.

Facts

The Fesco Angara was time chartered to Britannia Bulkers. As time charterers, Britannia supplied the vessel with bunkers. They entered into a contract of sale with bunker suppliers, Oceanconnect. The sale contract contained a retention of title clause saying that the suppliers would retain ownership until they got

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