Dutch multinational banking conglomerate ING has gone on the warpath in Singapore, arresting two tankers that it has accused of misdelivering cargoes.

This has left Navig8 Chemicals and Vietnam Ocean Shipping Co (Vosco) as the latest tanker operators to join the growing list of players stung by discharging cargoes against letters of indemnity rather than bills of lading.

ING seized Navig8 Chemicals' 37,600-dwt chemical/product tanker Navig8 Ametrine (built 2015) on 19 November, court records revealed this week.

It followed this up on Monday by arresting Vosco’s 47,100-dwt product tanker Dai Minh (built 2004) over similar claims.

In both cases, the bank is claiming unspecified amounts for damages caused by their alleged misdelivering of cargoes for which it still held the bills of lading.

Discharging cargoes against letters of indemnity from oil traders has been a common practice in the tanker trades, to expedite the discharge of cargoes, but it has led to serious legal implications for vessel owners after many traders that issued them ran into financial difficulties following the collapse of oil prices towards the beginning of the year.

Financiers holding the bills of lading have wasted no time chasing after the vessels, which were legally responsible as bailees of the cargo.

This has led to frequent arrests, and lawyers handling such cases in Singapore say that is just the tip of the iceberg.

“There is a lot more going on that doesn’t make it into the public domain through an arrest. Most companies are able to lodge security before the matter escalates to such drastic measures,” explained one Singapore-based legal source.

In most cases the ships are released once security is lodged by the ship’s owner or insurers.

However, the convoluted nature of charter chains and commodities deals can lead to complications.

One high-profile case this year involving Cido Shipping's 319,000-dwt tanker Miracle Hope (built 2019) saw court battles in Singapore and London involving Trafigura, Gunvor’s Clearlake Shipping and Petrobras before it was resolved.

Smaller owners with more limited access to security or legal clout have not been so lucky.

Indonesian owner Scorpa Pranedya’s 19,000-dwt chemical/product tanker Spas Tiga (built 2014) continues to languish under arrest in Singapore more than four months after the Hongkong & Shanghai Banking Corp filed a $6m cargo claim against it.

Navig8 Chemicals told TradeWinds that it was taking legal advice. The company declined to comment further on the matter.

Vosco could not be reached for comment.