Glencore provided bad fuel to two AP Moller-Maersk ships, found out and continued to sell bunker from the same batch throughout early 2018, a lawsuit from Navig8's VLCC pool alleges.
According to an amended complaint filed on 8 April, attorneys for VL8 Pool said that Glencore supplied Valero fuel to the 4,662-teu Maersk Aras (built 2013) and 9,578-teu Sofie Maersk (built 1998) in February 2018 in Texas.
"Within days of receiving the marine fuel from Glencore and using that fuel, both vessels experienced operational issues with their main engines, their fuel pumps and, ultimately, suffered complete main engine failures," the complaint, filed in the US federal court for the Southern District of New York, read.
"Glencore immediately was made aware of these incidents by its customer, which incidents resulted in claims against Glencore concerning the contaminated nature of its marine fuel."
The VL8 Pool ship in question, the 297,400-dwt Nave Photon (built 2008), was provided with Valero-supplied fuel from Glencore in March originating from the same Texas facility as the fuel provided to the two Maersk ships.
It ordered the fuel through Integr8 Fuels, which arranged for the fuelling with Glencore.
The three vessels were among 150 allegedly supplied with off-spec fuel from Valero from January to May 2018.
The Nave Photon did not use the fuel until 4 April, while crossing the Indian Ocean to China. It immediately began suffering operational issues, eventually being left to drift for days in the open ocean, several days from the nearest port.
It was eventually diverted to Sri Lanka, where it had to take on fresh fuel. The ship was held off-hire for roughly a month.
The incident allegedly cost VL8 $2.5m in damage, including salvage costs, bunkers and legal fees. The Nave Photon is no longer in the VL8 Pool.
VL8 first sued in March 2020. Last month, District Judge Andrew Carter granted Glencore's motion to dismiss, as the contract for the fuel from Glencore limits its liability and VL8 had not pleaded an interest in the vessel.
Carter allowed VL8 to amend its complaint. Its new complaint argued that the sale of off-spec bunker breached "implied warranties of fitness and merchantability".
Glencore declined to comment. Valero did not return a request for comment.
The Maersk dispute
In a separate lawsuit filed in the Southern District of New York in February this year, Maersk Oil Trading Panama and Maersk Line said the fuel provided by Glencore caused $6.1m damage to the Maersk Aras and Sofie Maersk.
The lawsuit was dismissed voluntarily on 8 April.
The complaint said Maersk acquired the fuel in a swap with Glencore in February.
Upon delivery, the fuel was transferred to the two ships.
The Maersk Aras began burning the fuel on 15 February, 2018. It suffered complete engine failure two days later and had to divert to Mexico.
The Sofie Maersk suffered main engine failure in the Pacific Ocean after beginning to burn the fuel on 1 March, 2018, and had to be towed to Hawaii.
