This is a statement of the terms and conditions in accordance with which ABN Bunkers , a Company incorporated under the Companies Act, 1956 and having its registered office at 16-23-35/10A,road no1,ayodhya nagar Kakinada – 533003, offers to sells Marine Fuel. These terms and conditions apply without limitation to any offer, quotation, order, agreement, or contract of whatever nature made or entered into by ABN BUNKERS for the sale and supply of Marine Fuel. In the event that any clause or sub clause of these terms and conditions is rendered invalid by operation of law or is declared invalid by a duly appointed arbitral tribunal or a competent court of law, the remaining clauses and sub clauses of these terms and conditions shall remain valid and binding upon the parties. Throughout this Contract, except where the context otherwise requires, the following definitions shall be applied:
“Barge” the oil tanker utilized by the Seller to deliver the Marine Fuel(s) to the receiving Vessel.
“Bunker Delivery Note” the document or receipt confirmation, required under Annex VI of MARPOL 73/78, signed by the Seller as a supplier for Marine Fuel and the Master of the Vessel or its representative as the Buyer or a recipient of the Marine Fuel, issued in accordance with Clause 5.4 and 7 of this document, which contains information on fuel oil delivery: name of receiving vessel, port, date, data of a supplier, quantity and characteristics of fuel oil etc. “Bunker Nomination” the document sent by the Buyer confirming to purchase Marine Fuel(s) from the Seller, specifying the Name & IMO Number of the Vessel, type and quantity of Marine Bunker Fuel(s) required by the Buyer for the vessel, agreed price of
Marine Fuel(s), date and place of delivery etc. “Bunker Requisition Form” a document where the Buyer or Master of the Vessel indicates the exact
requirements of the Marine Bunker Fuels including inter alia, the manifold size, receiving rates etc. with other relevant information and the time the Vessel is ready to accept delivery. “Buyer” the Vessel to which Marine Fuel will be or is supplied, her Master, Owners, Managers and/or Operators, Disponent Owners, Bareboat Charterers, Time Charterers, and/or other Charterers, any party requesting offers or quotations for the purpose of ordering Marine Fuel from the Seller and any party by or on whose behalf any offers or quotations for the supply of Marine Fuel may be sought from the Seller and on whose behalf orders are placed or agreements orcontracts for the purchase of Marine Fuel are made with the Seller. “Coastal Run Vessel” any Vessel, as defined under Section 3(1A) of the Merchant Shipping Act 1958, exclusively employed in trading between any port or place in Indian and nay other port or place on the continent of India or between ports or places in India. “Delivery Date” the date or date range nominated by the Buyer for the delivery of the Marine Fuel to the Vessel and is accepted by the Seller. “ETA” the estimated date of arrival of the Buyer’s vessel requiring the delivery of Marine Fuel(s). “Foreign Run Vessel” any Vessel, as defined under Section 2(21) of the Customs Act 1962 and Section 3(13) of the Merchant Shipping Act 1958, for the time being engaged in the carriage of goods or passengers between any port in India and any port outside India, whether touching any intermediate port in India or not, and includes – i. any naval vessel of a foreign Government taking part in any naval exercises;
1. Definitions
ii. any vessel engaged in fishing or any other operations outside the territorial waters of India;
iii. any vessel proceeding to a place outside India for any purpose whatsoever; “Marine Fuel” products derived from crude oil ordered by the Buyer from the Seller and to be delivered and/or delivered to the Vessel.
“Owner” In relation to a vessel, the person or a company to whom the vessel or a share in the vessel belongs or a person to whom the sailing vessel
belongs. “Place of Delivery” the location in or outside the Port Limits of a Port within the territorial limits of India that has been nominated by the Buyer for the receipt by the Vessel of the Marine Fuel and confirmed by the Seller in the Bunker Nomination. “Posted Price” the Basic Price that ABN BUNKERS has announced, through periodic price circular revisionsor website listing, that it will sell Marine Fuel(s). “Pricing Date Range” period commencing at 00:00 hrs on the 1 st day of accepted Delivery Date and ending at 23:59 hrs on the 10thconsecutive day thereafter. “Public Holidays” such days as have been declared as Public Holidays by the Government of India. “Seller” ABN BUNKERS, any of its offices or branch offices. “Tank Truck” a motor vehicle designed to carry liquefied loads on roads, and utilized by the Seller to deliver the Marine Fuel to the Receiving Vessel. “Vessel” the vessel, as defined under Section 3(55) of the Merchant Shipping Act 1958, includes any ship, boat, sailing vessel, or other description of vessel used in navigation that receives the Marine Fuel(s) either as end-user or as transfer unit to a third party. 2.1 The Buyer shall have the sole responsibility for the nomination of the grades of Marine Fuel(s) fit for use by the Vessel. 2.2 The Seller only warrants that the Marine Fuel(s) supplied or to be supplied by the Seller to the Buyer, shall be in conformity with the applicable subparagraph of regulation 14.1 or 14.4 and regulation 18.3 of Annex VI of MARPOL 73 / 78 and shall correspond with ISO Standard 8217:2012 edition or later as agreed by the Seller. 2.3 Save as provided in Clause 2.2 above, the Seller does not provide any warranties as to quality, merchantability, or fitness of the Marine Fuel(s) for any particular purpose and any implied warranties or conditions whether statutory, or otherwise are expressly excluded.
3.1 The Basic Price of the Marine Fuel(s), applicable for Coastal Run Vessels shall be the “Posted Price” on the date
of withdrawal of Marine Fuel(s) from the storage tanks facility of the Seller.
3.2 The Basic Price of the Marine Fuel(s) for Foreign Run Vessels shall have a “Pricing Date Range” for which the
price mutually agreed by the Buyer and the Seller in the Bunker Nomination shall be valid.
3.2.1 Basic Price applicable for invoicing purpose, for any specific Bunker delivery in USD/MT for overseas
Buyers or in INR/MT for Indian Buyers, shall be the Basic Price prevailing on the date of receipt of
Bunker Nomination by email from the marine customers.
3.2.2 The pricing date range will be a period of ten (10) calendar days commencing on 00:00 hrs of the
1
stday of Delivery Date of the vessel declared in the Buyer’s Bunker Nomination and ending at 23:59
hrs on the tenth consecutive day thereafter.
2. Grades/Quality
3. Price
3.2.3 Basic Price applicable for any bunker supply and delivery by the Seller after the end of “Pricing Date
Range” would be the highest between the price agreed for the Pricing Date Range and the “Posted
Price” of the Seller prevailing on the date of delivery of Marine Fuel(s).
3.2.4 Such pricing methodology shall be applicable only for those bunker enquiries having 1stday of bunker
delivery date range falling within 15 days from the date of receipt of Bunker Enquiry.
3.3 Delivery, wharfage charges, any overtime charges incurred if delivery takes place outside of regular working
days and hours at the relevant port of delivery, and other incidental charges as agreed mutually by the
Buyer and the Seller at the time of placing Bunker Nomination shall be applicable in the invoice in addition to
the Basic Price mentioned under sub-clauses 3.1 and 3.2.
3.4 Duties and Taxes prevailing on the date of product withdrawal from the Supplier’s shore tanks warehousing
facility for the intended bunker delivery purpose shall be applicable in the invoice in addition to the price
elements mentioned under sub-clauses 3.1, 3.2 and 3.3.
3.5 USD/INR Exchange Rate (SBI TT Selling Rate) of the fortnight / week (as the case may be), prevailing on
date of receipt of Bunker Nomination shall be applicable for currency conversion.
3.6 Buyer or the Owner of the Vessel shall bear any and all charges associated with the Vessel for the delivery
of Marine Fuel(s).
4.1 Under the Term as well as Spot Agreement, Buyer shall send Bunker Nomination to the Seller on the email
addresses of Seller’s sales office handling Marine Fuel sales at the relevant port. The Bunker Nomination
shall include the information such as the vessel name and IMO number, supply port, ETA of the vessel at the
supply port, the quantity, grade and maximum sulphur content, the method of delivery, as well as any special
conditions, difficulties, peculiarities, deficiencies or defects in respect of, and particular to, the vessel which
might adversely affect the delivery of the Marine Fuels, shall be specified in the Bunker Nomination.
4.2 Under the Term Agreement, vessels requiring delivery of Marine Fuel(s) shall be nominated by the Buyer no
later than seven (7) days prior to the arrival of the vessel at the place of delivery.
5.1 Delivery of Marine Fuel(s) shall be made by the Seller either by shore pipeline or by Barge or by Tank
Trucks depending upon the available options of delivery modes. If available, the quantities of Marine Fuel(s)
delivered by the Seller to the Buyer shall be determined by a flow meter. Else, the quantities of Marine
Fuel(s) delivered by the Seller shall be determined by gauging the shore tanks or cargo tanks sounding of
the Barge or tank trucks.
5.2 The Master of the Vessel, its Chief Engineer or a member of its Crew shall, together with the Seller’s
representative, measure and verify the quantities of Marine Fuel delivered from the Seller’s Barge, Tank
Truck or shore tank(s).Buyer may at his own expense appoint surveyor/representative during measurements
to verify the same.
5.3 The quantities of Marine Fuel(s) to be delivered by the Seller to the Buyer shall be measured and calculated
in accordance with the latest ASTM Petroleum Measurement Tables.
5.4 The Measurements/soundings taken in accordance with Clauses 5.1, 5.2 and 5.3 above shall be recorded
on the Seller’s Bunker Delivery Note and shall be signed on behalf of the Buyer by the Master or the Chief
Engineer of the Vessel and the Seller or Seller’s nominated representative.
Any disclaimer, remark or protest made by the Master or the Chief Engineer of the Vessel or a member of
the Vessel’s Crew on the Bunker Delivery Note will have no effect whatsoever on the Seller’s rights and
remedies under these terms and conditions. The Bunker Delivery Receipt signed by or on behalf of the
Buyer and the Seller as provided herein shall be final conclusive and binding between the parties as to the
quantity of Marine Fuel delivered to the Vessel.
4. Nomination of Vessel
5. Quantities/Measurements
5.5 If the Master or the Chief Engineer of the Vessel or a member of Vessel’s Crew or any representative of the
Vessel and/or Buyer or Buyer’s representative fails or declines to verify the quantities of Marine Fuel
delivered to the Vessel, the measurements made by or on behalf of the Seller shall be final, conclusive and
binding on the parties and shall not be called in question by the Buyer, the Owner and/or any person
claiming on their behalf.
5.6 The quantity of Marine Fuel delivered shall be the quantity specified in the Bunker Nomination with a tolerance
at Seller’s option of ±5% or five (5) Metric Tonnes, whichever is higher.
6.1 Delivery of the Marine Fuel(s) shall be made day and night, (Saturdays, Sundays and Public/Port Holidays
excluded), at the Place of Delivery, subject always to the weather conditions, Customs and Port permissions.
6.2 Notwithstanding that the accepted Delivery Date having been confirmed by the Seller, the Buyer or their
agents at the port or place of delivery, shall give the Sellers or their representatives at the port or place of
delivery, 72 and 48 hours approximate and 24 hours definite notice of the Vessel’s arrival and the location
and time at which deliveries are required. Such notice shall be given on e-mail addresses of the Seller’s
office responsible for Marine Fuel at the respective port(s).
6.3 Buyer shall inform the Seller, 48 hours prior to the accepted Delivery Date, the maximum allowable bunker
pumping pressure rating of the Vessel, bunker delivery hose connection type & dimensions and any special
conditions, difficulties, peculiarities, deficiencies or defects in respect of and particular to the Vessel which
might adversely affect the delivery of the Marine Fuels.
6.4 The Seller shall not be required to deliver any Marine Fuel to the Vessel, if any permit or approval of the
statutory / port authorities that is required by the Buyer/Vessel for that purpose has not been obtained by the
Buyer/Vessel before the accepted Delivery Date.
6.5 In case of the vessel failing to submit at least 48 hours before the 1st day of delivery date, Supplement to Air
Pollution Prevention Certificate issued by vessel flag for the Exhaust Gas Scrubbers fitted on the ship, the
Seller shall not be required to deliver Marine Fuel(s) exceeding the sulphur content 0.5% m/m to the Vessel
from 1
st January 2020.
6.6 The Buyer shall procure and be in possession of all certificates and/or permits required to comply with all
relevant regulations to enable the Vessel to enter, remain and accept delivery of Marine Fuels (bonded or
duty paid) at the Place of Delivery.
6.7 The seller shall not be required to deliver any Marine Fuel for bonded supply, in absence of any of the above
documents. Marine fuels in bond will be delivered provided the Buyer qualifies to receive such fuels. Buyer
shall reimburse seller for any tariff, tax, duty, penalty or other charges subsequently assessed for any
reason including the failure of Buyer to furnish the necessary qualifying proof.
6.8 From 1st January 2020, Marine Fuel(s) with sulphur content more than 0.5% m/m shall be delivered by the
Seller to the vessel (Indian & Foreign Flag ships not fitted with EGS) only with the prior approval obtained by
the vessel operator / owner from the Directorate General of Shipping, Mumbai subject to Buyer submitting
such approval to the Seller at least 48 hours before the 1
st day of delivery date.
6.9 Upon Seller’s Barge, Tank Trucks arriving alongside Buyer’s vessel for the purpose of supplying the Marine
Fuel(s), the Vessel and/or her Master and crew shall:
6.9.1 provide a free, safe and accessible side of the Vessel for the delivery of Marine Fuel and render all
necessary assistance to enable the Seller to deliver the Marine Fuel.
6.9.2 whenever required by the Seller or the Seller’s representative and at no cost whatsoever to the
Seller, moor and unmoor the Barge, hoist and lower such supply hose(s) from and to the Barge, Tank
Trucks and assist the Seller in any way requested to enable the smooth delivery of the Marine Fuel to
the Vessel.
6. Delivery
6.9.3 connect and disconnect the delivery hose(s) to the Vessel’s marine fuel intake manifold/pipe. The
Master of the Vessel and her crew shall ensure that the hose(s) are properly secured to the Vessel’s
marine fuel manifold prior to commencement of delivery of the Marine Fuel.
6.9.4 ensure that all pipes and manifolds and receiving tanks on the Vessel are completely checked and
ready to receive the Marine Fuel. The Buyer’s responsibilities include but are not limited to ensuring
proper opening/closing of relevant valves and the vessel’s scuppers (if any) are safely blocked to
avoid risk ofoil spillage during the delivery.
6.10 Buyer can opt for delivery Marine Fuel(s) to their nominated vessel through Buyer’s nominated Barge and/or
Tank Trucks subject to the Buyer either making advance payment or submitting the security in the form of a
Bank Guarantee / Standby Letter of Credit of the invoice value amount for the marine fuel(s) intended to
procure from the Seller and submitting Indemnity Bond, as per the format in Appendix-I, in favour of the Seller
confirming to adhere to the conditions set out in the Indemnity. Buyer shall give definite notice of the Barge
arrival on the e-mail addresses of the Seller’s office responsible for Marine Fuel at the respective port(s).
Marine Fuel(s) to the Buyer’s nominated Tank Trucks shall be delivered only during the working hours of
Seller’s oil installation.
6.11 Marine Fuel(s) supplies to Indian as well as foreign Navy vessels shall always have paramount priority in the
Seller’s marine fuel(s) delivery schedule.
6.12 The Seller shall not be liable for any demurrage paid or incurred by the Buyer and/or the Vessel to any party
or for any loss, damage or delay of the Vessel of any length or nature whatsoever that is beyond the control
of the Seller including but not limited to the delays due to congestion in ports, at terminal installations or
bunkering pier or delays caused by prior commitments of bunker Vehicles or delays caused due to priority
deliveries to the Indian and foreign Navy vessels.
7.1 The Seller shall arrange for a representative sample of each grade of Marine Fuel to be drawn throughout
the entire bunkering operation and that sample shall be thoroughly mixed and carefully divided into four (4)
identical samples of 1 litre quantity each. If practically possible, the sampling shall be performed in the
presence of both the Sellers and the Buyers or their respective representatives. The absence of the Buyers
or their representatives shall not prejudice the validity of the samples taken.
7.2 The sample shall be drawn at a point of delivery to the Vessel while supplying the Marine Fuel subject to the
provisions in clause 7.3 below.
7.3 The sample shall be drawn using a drip sampler, which shall be constructed, secured and sealed in such a
way so as to prevent the sampling device and the sample being tampered with throughout the transfer
period.
7.4 The four (4) identical samples referred to in sub-clause 7.1 shall be securely sealed and provided with labels
showing, inter alia, the Vessel’s name, identity of delivery facility, product name, delivery date and place and
point of sampling and seal number, authenticated with the Vessel’s stamp and signed by the Sellers’
representative and the Master of the Vessel or his authorized representative.
7.5 Two (2) samples shall be retained by the Seller for minimum forty five (45) days after delivery of the Marine
Fuel(s) to the Vessel or, on being requested in writing by the Buyers, for as long as the Buyers may
reasonably require, and the remaining two (2) samples shall be handed over to the Vessel.
7.6 If the quantity is delivered by more than one Barge, the sampling procedure shall be repeated as outlined in
this Clause 7.
7.7 In the event of any dispute with regard to the quality of the Bunkers delivered, the samples drawn pursuant
to clauses 7.1 to 7.6 above shall be deemed to be conclusive and final evidence of the quality of the product
delivered. In case of any dispute, one of the samples retained by Seller shall be forwarded to the mutually
agreed independent laboratory in India for analysis, result of which shall be final and binding to both Buyer
and Seller. The seal of the relevant sample must be breached only in the presence of both parties unless
one/both have declared in writing that they will not be present; and both parties shall have the right to appoint
any independent person(s) or institute(s) to witness the breaking of the seal and testing of the sample.
Samples
7. Sampling
subsequently taken shall not be allowed as (additional) evidence. If any of the seals have been removed or
tampered with by an unauthorized person, such sample(s) shall be deemed to have no value as evidence of
the sample delivered pursuant to the terms and conditions.
8.1 Before commencement of delivery the Sellers shall present for written acknowledgement by the Master of the
Vessel or his authorized representative, a Bunker Requisition Form or similar document, duly signed by the
Sellers or their representative, which shall contain the quantities to be delivered and brief bunker delivery
terms.
8.2 The Master of the Vessel, the Chief Engineer or a member of the Crew shall, together with the Seller’s
representative, measure and verify the quantities of Marine Fuel delivered from the Seller’s Barge, Tank
Trucks and/or shore tank(s) before commencement of delivery and shall sign and stamp the initial gauging /
sounding report.
8.3 Once the delivery is completed and quantities measured, Seller’s Barge, Tank Trucks and/or shore tank(s)
gauging / soundings report after the delivery and a Bunker Delivery Note shall be signed and stamped by the
Master of the Vessel or his authorized representative, and returned to the Sellers, or their representative, as
acknowledgement of the actual volume and the actual delivery temperature only and a duplicate copy shall
be retained by the Master of the Vessel. This receipt shall contain the following minimum information which
is warranted by the Sellers:
– Delivered quantity in Metric Tonnes
– Density in kg/m3 at 15OC
– Sulphur content in % m/m
8.4 Additionally, Marine Fuel(s) End Use Declaration, Customs Shipping Bill and any other statutory documents
are required to be signed and stamped by the Master of the Vessel or his authorized representative upon the
completion of bunker delivery.
8.5 The seal numbers of samples drawn during the delivery of Marine Fuel(s) shall be inserted into the Bunker
Delivery Note and by signing the Bunker Delivery Note the Buyer and the Seller are deemed to have agreed
that the samples referred to therein are valid and taken in accordance with the requirements as set out in the
clause 7.4.
9.1 Payment for the Marine Fuel(s) shall be made by the Buyers to the Seller in advance or against the credit
within the number of days after the completion of delivery, as mutually agreed by the Buyer and the Seller at
the time of negotiating the Bunker Nomination.
9.2 Payment shall be made in full, without set-off, counterclaim, deduction and/or discount, free of bank charges
to the bank account indicated by the Seller on its respective invoices.
9.3 In case of advance payment terms, the Seller is not required to proceed with the delivery if payment is not
received in the Seller’s bank account at least 1 bank working day before the bunker delivery date. In case of
credit terms, if payment falls on a non-business day, Buyer shall make payment on the preceding business
day.
9.4 Notwithstanding any agreement to the contrary, payment will be immediately due in case of bankruptcy,
liquidation or suspension of payment or comparable situation of the Buyer, or arrest or assets and/or property
of the Buyer, or in case of any other situation, which in the sole discretion of the Seller, is deemed to
adversely affect the financial position of the Buyer.
9.5 Any delay in payment shall attract an interest equivalent to the prevailing penal interest rate, declared as a
policy by the Seller, time to time along with applicable duties and taxes.
8. Documentation
9. Payment
9.6 All costs borne by the Seller in connection with the collection of overdue payments, whether made in or out
of court or arbitration proceedings and in general, all costs incurred by the Seller in connection with any breach
of this agreement by the Buyer, shall be for the sole account of the Buyer.
9.7 Payments made by the Buyer shall at all times be credited by the Seller to meet outstanding amounts due
from the Buyer in the following order: (1) costs, (2) interest and administration fee, and (3) invoices in their
order of age.
9.8 The Seller shall at all times be entitled to require the Buyer to grant to the Seller what the Seller deems to be
sufficient security for the performance of all its obligations under this Agreement. The failure of the Buyer to
provide such security upon the request of the Seller shall entitle the Seller to stop any further execution of any
agreement(s) between the Buyer and the Seller until such time as the Buyer has provided the required
security. In the event of non-payment, the Sellers reserve the right to pursue such legal remedies as may be
available to them to recover the amount owed.
10.1 Seller reserves its right to withdraw the supply Barge plied for the delivery of Marine Fuel(s) and recover
demurrage and consequential liquidated damages along with applicable duties and taxes from the Buyer if,
10.1.1 vessel not being ready and/or unable to take delivery of the Marine Fuel, or
10.1.2 vessel being not present at the place of delivery at the accepted delivery time, or
10.1.3 vessel not arriving at the nominated at the place of delivery by the end of the accepted delivery
period
10.2 Any claim with regard to the quantity delivered must be notified by the Master or Chief Engineer of the Vessel
to the Seller or its representative immediately after the completion of delivery, failing which, any claims that
the Buyer may have shall be deemed to have been waived and shall be permanently barred.
10.3 Claims concerning the quality of the Marine Fuel delivered shall be submitted to the Seller in writing within 30
(thirty) days from the date of marine fuel(s) delivery to the vessel, failing which the right to complain or claim
any compensation whatsoever shall be deemed to have been waived and permanently barred.
10.4 In the event a claim is raised pursuant to sub-clause 10.3, the parties hereto shall have the quality of the
Marine Fuel(s) analyzed by a mutually agreed, qualified and independent laboratory in India. The Sellers shall
provide the laboratory with one of the samples retained by them as per sub-clause 7.5. If ISO grades have
been specified the analysis shall be established by tests in accordance with the relevant edition of ISO
Standard 8217 and ISO 4259:2017. If non-ISO grades have been agreed, tests will be made in accordance
with standards corresponding to the aforementioned ISO standards. Unless otherwise agreed, the expenses
of the analysis shall be for the account of the party whose claim is found wrong by the analysis.
10.5 The Seller shall not be responsible for any claim arising from commingling of Marine Fuels delivered by the
Seller with other fuel(s) onboard the vessel.
10.6 In any event any claim by the Buyer shall be time barred unless legal proceedings have been initiated as set
forth in Clause 0hereof within 6(six) months of the date of delivery.