A Star Bulk Carriers ultramax looks set for a longer-than-expected stay in the port of Mundra thanks to a cargo dispute that has erupted with an Indian fertiliser importer.
An arrest warrant was issued against the 63,300-dwt Kaley (built 2015) on Monday at the request of Indian Potash Ltd (IPL), which claimed the vessel did not deliver all of the cargo it had loaded in the Russian port of Ust-Luga.
IPL told the High Court of Gujarat in Ahmedabad that it purchased 60,500 tonnes of fertiliser from Chasemax International DMCC of Dubai, which arranged to transport it to India on the Kaley.
The arrangement with the seller was that once the vessel arrived in Indian waters, 30,000 tonnes of the fertiliser would discharged at Deendayal Port, with the remainder to be discharged at Mundra.
The fertiliser was duly loaded in Ust-Luga, a Baltic port, and the relevant bills of lading showing the correct amount of cargo was on board the ship. IPL thus paid Chasemax $20.28m for the fertiliser.
The dispute that led to the arrest of the Kaley broke out after it had finished discharging its first consignment of fertiliser at Deendayal Port.
IPL claimed that after completing the discharge at this port, a surveyor it had engaged had carried out a draft survey and determined that only 29,738 tonnes of fertiliser had been discharged. There was a shortfall of 262 tonnes.
IPL further alleged that the Kaley’s chief officer and master refused to sign the surveyor’s report or acknowledge there was a shortfall.
Star Bulk did not respond to TradeWinds’ request for comment, and Chasemax International DMCC could not be reached for this story.
The fertiliser importer lodged its legal claim against the Kaley upon its arrival in Mundra Port, and the arrest warrant was served shortly before it was due to depart on 22 July.
IPL is seeking $101,001 as the value of the missing 262 tonnes of fertiliser and $20,000 for legal costs.
That a cargo of Russian fertiliser was shipped on a vessel belonging to a US-listed company should not raise any legal eyebrows.
There are currently no US or European Union sanctions on Russian fertiliser.
In fact, data by the United Nations Comtrade platform compiled by several media outlets shows that Russia exported nearly $6.6bn worth of fertilisers to 57 countries in 2023. The biggest buyers were Brazil, India and the US.
