NuStar Sues PMI Alleging Off-spec Bunkers

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In a major development, the marine fuel supplier NuStar has announced that they have contended the Mexican trading company PMI  to be responsible for the marine fuel that allegedly damaged one of Toyota’s chartered vessels, reports Argus Media.

What happened?

  • NuStar filed a response to a lawsuit brought by Toyota Tsusho Petroleum, bringing a third-party complaint against PMI.
  • NuStar says PMI provided the bunker fuel that is alleged to have damaged a Toyota-chartered vessel.
  • The filing with the US District Court Southern District of Texas Houston Division on 30 May requested that Toyota dismiss its claim against NuStar, and that PMI be held liable for damages to Toyota and NuStar in amounts yet to be determined.
  • NuStar said it purchased the residual fuel oil from PMI on 17 April 2018 and that the fuel was delivered to the Houston Fuel Oil Terminal storage.
  • The fuel was then sold to two vessels: the cargo ship Beatrice on 19 April and to the tanker GT Star on 18 April.
  • NuStar had de-bunkered the fuel delivered to GT Star, which NuStar alleges cost $18,000.

What does the lawsuit state?

The lawsuit states that “the source of all damages costs and expenses incurred by Toyota is PMI’s provision of off-specification product”.

Toyota’s Allegations?

Toyota filed suit on 27 March seeking $421,785 from NuStar for alleged damages to Beatrice. According to Toyota, the fuel exceeded the maximum specification for calcium, phosphorus and zinc.

Centurion Sued NuStar

Singapore-based vessel operator Centurion Bulk sued NuStar in March for alleged damages caused by contaminated fuel supplied to the dry bulk carrier San Antonio. But the response filed by NuStar on 30 May does not mention Centurion Bulk.

NuStar and PMI did not reply to requests for comments.

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Source: Argusmedia