Applications:
These conditions of Sale for Marine Fuel (the “Conditions”) shall apply to each and every sale of Marine Fuel made or caused to be made by FNSA Fuel Ltd, P. 0. Box – 4861, Fujairah, U. A. E. (the “Seller”) to any purchaser of Marine Fuel (the “Buyer”), unless otherwise agreed in writing between the Seller and the relevant Buyer.s
Marine Fuel :
The grades of Marine Fuel to be sold subject to these Conditions are: bunker fuel oil With viscosity ranging from 30 centistokes to 380 centistokes at 50 degrees C; marine diesel oil, marine gas oil.
The Seller may provide information to the Buyer regarding characteristic of Marine Fuel to be sold hereunder, but the Buyer shall have the sole responsibility for selection and acceptance of Marine Fuel for use in the vessel (s) receiving such Marine Fuel, including determination of compatibility with fuel already on board such vessel(s).The buyer (or its agent) may inspect Marine Fuel delivered by the Seller before it is pumped out of the Seller’s barge. The Seller gives no warranty as to quality or fitness or suitability of Marine Fuel sold hereunder for any particular purpose and all warranties and conditions whether express or implied as to merchantability or fitness of suitability for any particular purpose are expressly excluded.
Where standard specifications are being given or referred to, tolerances in accordance with ISO 4259 in respect of Reproducibility/Repeatability in quality are to be accepted without compensation or other consequences whatsoever.
Quantity:
The Seller shall, subject to availability and confirmation of supplies, supply such quantity of Marine Fuel as the Buyer orders from time to time for delivery to any vessel(s) specified by the Buyer. The Buyer may specify a nominated quantity and shall procure that the difference between such nominated quantity and the quantity actually delivered by the Seller into the relevant vessel (s) shall not exceed five per cent of such nominated quantity.
The Sale of Marine Fuel hereunder is on the basis of the quantity delivered by the Seller into the vessel(s) specified by the Buyer. Quantity shall be determined as Seller may elect and, if gauge or meter of terminal or barge tank is available, by one of such of them as is available. Determination by gauge or meter of terminal or barge tank shall be conclusive, but Buyer shall have the right to be represented at the time of measurement Where quantity is determined by Seller otherwise than by gauge or meter of terminal or barge tank, such determination shall be conclusive unless complaint is made to Seller at time of delivery and if confirmed in writing received by Seller within 7 days of delivery.
Except where applicable government regulation or port authorities determine otherwise, adjustment in volume owing to difference in temperature shall be made in accordance with API/ASTM-IP Petroleum Measurement Standards for Generalized Products (Table 6B, 24B, or 54B). In the measurement of Marine Fuel, the Seller shall make allowance for all water and non-petroleum sediments in excess of one percent.
Price:
The price of Marine Fuel delivered hereunder shall be the established selling price effective for the time and place of delivery by Seller of Supplying Company, as the case may be, for the grade of Marine Fuel delivered, Buyer shall also pay all applicable duties, taxes, fees and other costs including without limitation, those imposed by governments and authorities, and barging and other delivery charges, all of which shall be included in Seller’s invoices to Buyer. Seller reserves the right to amend the price offered or cancel Buyer’s nomination in the event if vessel ETA delay for more than forty eight (48) hours of the original ETA when placed nomination with Seller.
All prices and/or tariffs are exclusive VAT, unless specifically stated otherwise. Any VAT or other charge and/or tax applicable and whenever imposed, shall be promptly paid by the Buyer, and unless otherwise agreed in writing all supplies are quoted and invoiced based on quantity calculated quantity in metric tons in vacuum.
Payment:
Buyer shall make full payment in United Stale dollars, without any discount, deduction, offset or counter claim, free of all charges in immediate available funds by telegraphic transfer within 30 days from the date of delivery (date of delivery to count as day one) against presentation of Seller’s delivery document (s) and commercial invoice(s). If due date falls on a Friday or Saturday/-Sunday, U.A.E. Holiday, payment shall be due the preceding day. Payment shall be made as directed by the Seller by transfer of funds and the relevant payment date to such bank and account as may be designated by the Seller for the Seller’s account. For the purpose of effecting payment, the Seller may require that an irrevocable standby letter of credit for payment on the relevant payment date be opened in the Seller’s favour. Payment shall be made in United States dollars as specified in the Seller’s invoice.
Payment shall be made within a period of 30 days frorn (and including) the date of delivery Unless otherwise agreed by the Seller. Interest shall accrue to the Seller at the rate of two percent per month for any late payment as from the day falling after the end of such period to the date when payment is received by the Seller such interest shall be payable as directed by the Seller.
Payment shall be deemed to have been received by the Seller on the date that the relevant funds are credited to the Seller’s designated bank account and unconditionally cleared.
In the event that the Buyer shall default in making any payment due, the Seller may suspend deliveries of Bunkers until such payment has been made in full (together with default/delay compensation and costs), or the Seller may, in its discretion, elect to treat such default as a serious breach of the Agreement and thereupon terminate the Agreement on whole or in part without prejudice to any claim against the Buyer for damages, including cancellation charges. Such termination or suspension shall not relieve the Buyer of any obligation undertaken by virtue of an Agreement so terminated.
Where the Buyer fails to pay timely, the Seller has the right to (without prejudice to its rights to receive default/delay compensation) take all appropriate steps to secure and enforce its claim; the Seller may also unilaterally cancel any credit arrangements agreed with/extended to the Buyer.
All judicial and extrajudicial costs and expenses, including pre-action costs, fees, expenses and disbursements of the Seller’s lawyers/attorneys-at-law, incurred in connection with non-payment or delayed payment or by any other breach by the Buyer of these conditions, shall be for the Buyer’s account, immediately payable by the latter to the Seller. In case of litigation, the Buyers shall also pay all the relevant expenses to the Seller, including but without limitation all his reasonable attorneys/lawyers’ fees, costs and disbursements.
Payments made by the Buyer in respect of a supply of Bunkers shall at all times be credited in the following order: (1) costs of any kind or nature, including but not limited to legal costs and attorneys’ fees, (2) interest and administrational fee, and (3) invoices in their order of age, also if not yet due, or in Seller’s sole discretion to specify a payment to any such invoice Seller considers relevant.
All costs borne by the Seller in connection with the collection of overdue payments, including those of the Seller’s own legal and credit department and, including but not limited to, reasonable attorneys’ fees, whether made in or out of court and in general all costs in connection with breach of any agreement by the Buyer, including but not limited to reasonable attorneys’ fees, shall be for the sole account of the Buyer.
Claims:
Any claim by Buyer as to shortage in quantity must be notified by the Buyer, or the Master of the Vessel, to the Seller or Supplier immediately after completion of delivery in the form of a letter of protest. If the Buyer or the Vessel’s Master fails to present such immediate notice of protest to the Seller or Supplier, such claim shall be deemed to have been waived and shall be absolutely barred for all purposes.. Buyer shall pay the full amount of inspection fee and consequential losses following investigation, in the event if the independent inspector found and certified Seller’s Bunker barge figure to be correct, and this barge figure shall be final and conclusive without further dispute.
Any claim by Buyer with respect to deficiency in quality and quantity of Marine Fuels delivered by Seller must be made as soon as possible, and in no event more than seven (7) days from the date of delivery with a clear statement as to the nature or the claim(s) along with appropriate supporting documentation, failing which any rights to complain or claim compensation of whatever nature shall be deemed to have been waived and absolutely barred for all purposes.
Seller or Sellers supplying company shall not be responsible for any claim arising from the commingling of Fuel delivered by Seller with other Fuel aboard Buyer’s vessel. Buyer’s and Seller’s representative (s) so as to determine the deficiency.
In no case shall Seller or Seller’s supplying company is liable for any demurrage or delay resulting from causes beyond their control or avoidable by due care on the part of Buyer or its vessel.
Claim of any nature does not relieve Buyer of responsibility to make full payment of amount due to Seller as provide in clause 5.
The Buyers submission of any claim does not relieve it of responsibility to make payment in full as required under the provisions of Condition 5.
The Buyer shall be obliged to make payment in full and fulfil all other obligations in accordance with the terms of the Agreement and these conditions, whether or not it has any claims or complaints. If Buyer submits a claim against Seller with respect to the quality or quantity of the products supplied, the Seller or the Seller’s nominated representative shall be entitled to board the Vessel and investigate the Vessel’s records, log books, engine logs, etc, and to make copies of any such document the Seller or the Seller’s nominated representative may consider necessary for its investigations connected to the case. The Buyer shall allow this, or where Buyer has chartered the Vessel then the Buyer shall obtain authorization from Owner to allow the herein stated steps and to provide full assistance and support by the Vessel’s officers and crew in any such manner the Seller or Seller’s nominated representative may require. Failure to allow boarding and/or produce required copies of documents and/or lack of full cooperation by the Vessel’s officers and crew shall constitute a waiver of the Buyer’s claim.
The Seller shall be allowed, and the Buyer, Owner, Officers and Crew onboard the receiving Vessel shall agree and in any way support and cooperate with Seller’s representative, to draw samples from the Vessel’s storage tanks, settling tanks and service tank and/or from before and after the Vessel’s centrifuges to have extra tests carried out for such samples at independent laboratory.
Nomination:
Buyer shall give Seller, unless otherwise agreed by Seller at least seven (7) days prior notice of deliveries required, specifying the name of the vessel, vessel’s local agent(s) shall give to Seller or Seller’s supplying company at each port where deliveries are required, at least 72/48/24 hours advance notice (unless otherwise stated), Sunday and holidays excluded, or the exact quantity required and exact location and time at which delivery is required.
Delivery:
Vessel will be bunkered as promptly as circumstances permit but neither Seller nor sellers supplying company shall be liable for demurrage or for any loss due to congestion at the terminal or to prior commitments of available barge. The Seller is not responsible for delays caused by local customs, pilots, port- or other authorities.
In the event if vessel arrived earlier or later than the indicated expected date of arrival when placing nomination, Seller will not guarantee or warrant prompt delivery but Seller will endeavor to supply the ordered Marine fuel to vessel soonest.
If Buyer caused delays to Seller’s or Seller’s supplying company’s facilities in effecting deliveries,, Buyer shall pay demurrage at Seller’s or Seller’s supplying company’s established rates, and reimburse Seller or Seller’s supplying company for all other expenses in connection therewith.
Buyer agrees to reimburse Seller or Seller’s supplying company for overtime and/or other additional expenses incurred due to the failure of Buyer, its servant or vessel’s local agent(s) to provide supplying company with sufficient prior notice of amendments of delivery time, quantity changes Or cancellations.
Buyer shall make all connections and disconnections between the delivery hose and vessel’s intake pipe, and shall render all other necessary assistance and provide sufficient tankage and equipment to receive promptly all deliveries hereunder.
The Vessel shall moor, unmoor, hoist and lower bunkering hose(s) from the barge(s) whenever required by the Seller, Seller’s representative or Supplier, free of expenses and in any way as may be requested to assist the barge equipment to a smooth supply. The Buyer shall make and be responsible for all connections and disconnections between the delivery hose(s) and the Vessel’s bunker intake manifold/pipe and ensure that the hose(s) are properly secured to the Vessel’s manifold prior to commencement of delivery.
During bunkering the Vessel’s scuppers must be safely blocked, which blocking must be made by the Vessel’s own crew. Furthermore the Vessel must ensure that all pipes and manifolds and receiving tanks are properly checked and ready to receive the bunkers, including but not limited to ensuring proper opening/closing of relevant valves, without any risk for spillages, etc, during the bunkering.
Local further special requirements for receiving bunkers must be followed strictly by the Vessel, whether advised or not by the Seller or the Seller’s representative, as it is always the Vessel and the Buyer who remains solely responsible for the knowledge and awareness of such eventual additional requirements for safety reasons.
In the event that the Vessel is not able to receive the delivery promptly, the Buyer is thereby in default and shall pay damages and/or any reasonable demurrage claim to the
barging/ supplying facilities and shall indemnify the Seller in each and every respect as a result thereof
Delivery shall be deemed completed and all risk and liabilities, including loss, damage, deterioration, depreciation, contamination, evaporation or shrinkage to the Bunkers delivered and responsibility for loss, damage and harm caused by pollution or in any other manner to third parties shall pass to the Buyer from the time the Bunkers reach the flange/connecting pipe line(s)/delivery hoses provided by the Seller on the barge/ tank truck/shore tank.
If the Buyer for whatever reason is unable or refuses to receive the full quantity ordered, the Seller shall have the right to invoice the Buyer for the loss incurred by having to transport the undelivered Bunkers back to the storage or by having to sell the Bunkers in a degraded form or at a lower price. The Seller may exercise this right without prejudice to the Seller’s other rights for damages or otherwise pursuant to these conditions.
The Vessel shall provide and have appropriate and segregated tanks to receive the contracted quantity of Bunkers; and the Vessel shall always be able to perform its own blending on board if any blending is deemed to be required by the Buyer. The Vessel shall upon delivery test the Bunkers supplied by running her engines or auxiliaries or equipment, for which the Bunkers are supplied, for a minimum of 1 (one) hour to determine that the Bunkers are satisfactory. In the event the Bunkers are not considered satisfactory, the Seller and Supplier are to be notified in writing immediately after such test period has expired. Otherwise, it shall be deemed that the Bunkers were satisfactory and that in any event the Buyer has waived any right to claim in this regard.
If delivery is required outside normal business hours or on local weekends, Saturday, Sunday, national religious or public holidays the extra expenses incidental to such delivery shall be reimbursed by the Buyer as additional costs.
In the event the Bunker delivery is made by vessel or barge as a ship-to-ship transfer, any damage caused by contact and/or collision and/or swell and/or other weather or sea related condition or incident, is to be dealt with by the Owners directly with the owners of the units involved, and Seller/Supplier shall not be held nor be responsible for any such damages. If, however, any of the involved units choose to pursue Seller and/or Supplier, Buyer will fully indemnify and hold Seller harmless in relation thereto.
For safety reasons it is agreed that it is solely the Master of the bunkering barge that determines whether mooring alongside is safe, taking weather, swell and forecasts into consideration. Supplier/Seller not to be held responsible for any delays, demurrages, liquidating damages or similar whatsoever as a result of any eventual delays caused by any decision by the Master of the barge in this connection. Supplies being always performed weather permitting
Force Majeure :
No failure or omission by the Seller or the Buyer to carry out or observe any of these conditions shall give rise to any claims against that party, whether or not foreseen, including (without limitation) such Causes as labor disputes, strikes, governmental intervention, the Seller’s response to the insistence or request of any governmental body or person purporting therefore, war, civil commotion, fire, flood, accident, Seller or account of Marine Fuel previously delivered hereunder.
Shortage of Marine Fuel :
If, as a result of any of the events, matters or things referred to in Condition 9 or any other event (including without limitation of contractual changes relating to the supply of crude oil or petroleum products from which Marine Fuel of the grade to be sold to the Buyer if derived), supplies of Marine Fuel are curtailed or available to the Seller only under conditions, which in the Seller’s sole judgment are deemed unacceptable, the Seller may allocate, on any fair and reasonable basis according to its own requirements and those if its related and affiliated companies and other customers including the Buyer. The Seller shall not be required to increase supplies from other sources or to purchase Marine Fuel to replace supplies curtailed. The Seller will not be responsible to the Buyer for any loss or liability incurred by the Buyer as a result of such shortage of supply.
Romalpa Clause : Notwithstanding that risk in fuel oil delivered has already been passed to Buyer title in the deliveries shall remain with Seller and shall not pass to Buyer until the price due for the deliveries has been paid in full. Buyer shall be the bailee of deliveries for Seller until title has passed to Buyer. If Marine Fuel supplied pursuant to this agreement is mixed with other Marine Fuel of products Buyer hereby assigns. And transfers to Sellers such quantity of the admixture as would satisfy all outstanding in respect of deliveries made under this agreement. In the event payment is not made at the time and in the manner above prescribed. Seller shall have the right to regain possession of deliveries; already made without being obliged to set a further deadline for payment and all expenses and charges arising in connection therewith shall be borne by buyer.
Indemnity :
Buyer shall indemnify Seller and Seller’s supplying company harmless from and against all claims, demand, suits or liabilities for damage to property or for injury or death to any person arising from any acts or omissions of Buyer or its servant(s), ship’s officers or crews in connection with the delivery of Marine Fuel under this agreements.
Contingencies :
Seller shall not be liable for any delay or default in performance under this contract where performance is delayed, prevented or made substantially more expensive by any circumstances of whatever nature not within the control and preventable by reasonable diligence of seller. Seller shall not be responsible for any demurrage resulting from such delay or failure to perform
Measurement:
The amount of Fuels delivered shall be determined by measurements of shore tanks, lighters,, meters is, at Seller’s option, and Buyer will be charged on the basis of these measurements, Buyer has a right to have its representative present during measurement, but determination of quantity shall be made solely by Seller, and such determination shall be conclusive and binding and the Buyer shall be deemed to have waived any and all claims in regard to any variance.
The Buyer expressly undertakes not to make any endorsement, complaint/ comment (including but without limitation any ‘’No-lien’’ clausing) on the BDR when presented for signature by the Buyer’s representative(s), any such insertion shall be invalid and of no effect whatsoever
In the event of complaint/comment on the quantity of Bunkers delivered, the Buyer or the Master of the Vessel shall give to the Seller/Supplier a letter of protest separately, followed by a complaint in detail to the Seller, setting out the exact quantity(ies) claimed short supplied, and with full supporting vouchers, in writing within 7 (seven) days thereof, failing which, any such claim by the Buyer shall be extinguished as nonexistent, and the Buyer shall be deemed to have expressly waived any such claim against the Seller/Supplier, the relevant claim being time barred, and the Seller/Supplier’s weight and measurements shall be conclusive evidence of the quantity of Bunkers delivered
Environmental Protection:
If any escape, spillage or discharge of oil occurs while Marine Fuel is being delivered to the relevant vessel(s) hereunder; the Buyer will promptly take such action as is reasonably necessary to remove the oil and mitigate the effects of the escape, spillage or discharge. Notwithstanding the cause of such escape, spillage or discharge, the seller may, at its option, upon notice to the Buyer or the operator of, or the agent for, the relevant vessel(s) take such measures, either in co-operation with the Buyer or by itself and incur such expenses (whether by employing its own resources or by contracting with others) as are reasonably necessary in the Judgment of the Seller to remove the oil and the mitigate the effects of such escape spillage or discharge. If the seller exercises such option, the Buyer shall cooperate and render such assistance as may be required by the Seller. Any expense, damage, cost, fine or penalty arising from escape, spillage discharge or pollution of oil shall be paid by the party that caused the same by a negligent act or omission. If both parties have acted negligently, any expenses etc shall be divided between the parties in accordance with the respective degree of negligence. The Buyer also agrees to give to the Seller all such documents and other information concerning any escape, spillage or discharge or any programme for the prevention thereof, which are requested by the Seller of required by law or regulation applicable at the time and place where the Seller delivers Marine Fuel to the Buyer
Additional Provisions:
Notices hereunder shall be sent by post or telex to Seller at such address and telex number as may be notified by the Seller to the Buyer. Unless indicated by the Buyer, notices hereunder shall be sent by post or telex to the Buyer at the address and telex number designated by the Buyer for invoicing. Any change or address by either party must be notified to the other party within 15 days after such change
No waiver by either party of any breach of these Conditions to be performed by the other party shall be construed as a waiver of any succeeding breach of the same or any other covenants or conditions.
The Buyer shall not, without the Seller’s prior written consent, assign any of its rights or transfer any of its obligations in respect of any sale of Marine Fuel hereunder.
If an order is placed by an agent for the Buyer, such agent shall be liable not only as agent but also for performance of all the obligations of the Buyer hereunder.
Governing Law :
These conditions are governed by and shall be construed in accordance with the law of United Arab Emirates. The Buyer submits to the non-exclusive jurisdiction of the courts of United Arab Emirates to settle any dispute which may arise In connection with any sale of Marine Fuel hereunder.