CMA CGM Sues Bunker Supplier For $5M After Faulty Fuel Damages 13 Ships

One of the world’s largest container shipping companies, CMA CGM has filed a lawsuit in a Texas federal court against Houston-based bunker supplier GCC Supply & Trading, demanding over $5 million in damages.

The case involves allegations that contaminated marine fuel supplied in early 2023 caused serious damage to 13 of CMA CGM’s vessels.

According to court documents filed in the US District Court for the Southern District of Texas, the shipping company took delivery of around 33,628 metric tons of Very Low Sulfur Fuel Oil (VLSFO) between March and June 2023 at the Port of Houston.

CMA CGM had a contract with GCC for the manufacture, sale and delivery of this marine fuel.

Soon after the fuel was loaded onto their ships, the vessels began experiencing major technical issues. These included fuel pump failures, leakages in the internal combustion unit (ICU), sudden loss of engine power, propulsion problems, and even complete blackouts in some cases.

The company stated in its legal filing that the affected vessels suffered physical damage to various systems, such as fuel tanks, engines, purifiers, and fuel delivery components.

CMA CGM said it informed GCC about these issues as soon as they were found.

The French liner group is accusing GCC of supplying fuel that was not only contaminated and defective but also unfit for use in ship engines.

They argue that GCC failed to follow proper industry practices for testing and screening its fuel for dangerous chemical components. CMA CGM believes the supplier should have known the risks the fuel posed.

CMA CGM claims it had to deal with costly disruptions in its operations, delays, increased expenses, and loss of business opportunities.

They are suing the supplier on multiple grounds, including breach of contract, breach of negligence, warranties, and product liability. The company is also seeking a jury trial to determine the total amount of compensation.

In July 2023, marine fuel testing firm VPS (Veritas Petroleum Service) publicly reported a contamination incident at the Port of Houston, the largest bunkering hub in the Americas.

VPS found high levels of dicyclopentadiene (DCPD) and similar compounds in some VLSFO deliveries from a single supplier during the first half of that year.

Dicyclopentadiene, often referred to as DCPD, is an unsaturated chemical compound that makes fuel sticky and more viscous, which can disrupt engine performance.

VPS confirmed that 14 vessels in total had received contaminated fuel. Of those, 12 were supplied in Houston, while two others received similar fuel in Singapore.

Four different suppliers were involved in those cases.

The VPS findings add more credibility to the complaint. In a similar incident in 2023, a major fuel contamination was reported in Singapore. Over 200 ships were affected in March 2023 after receiving problematic fuel.

Regulatory authorities investigated that case and traced the issue back to its origin, imposing strict penalties on the responsible supplier.

Reference: Container news

Source: Maritime Shipping News