Legal Study On Bunker Contract

Bunker fuel is the fuel oil used mainly in powering ships.It gets its name from the containers on board ships and in ports that it is stored in,which are called bunkers.Bunker fuel constitutes a fundamental element and one of the largest expenses in ships operation.In difficult market conditions,this fact leaves bunker suppliers faced with delays in payment,non-payment or requests to provide credit terms.One of the common features of bunker supply contracts is the allowance of all or part of the purchase price to be paid after delivery of the bunker fuel.For the past few years,when the market condition was difficult and the bunker prices were high,these credit terms affected bunker traders since they were left unpaid for the bunker they supplied.In addition,shipowners were faced with an unexpected risk of vessel arrest pursuant to the action in rem initiated by the unpaid bunker traders who supplied the vessel with bunkers at the request of charterers.There are three parts of this article,including introduction,main body and conclusion.The main body of this article is comprised of four chapters which talk about the bunker supply contract separately.The first chapter introduces details of the contract,including the implication of the contract,elements and the legal relations.The second chapter discusses the nature of the contract,containing the famous case The " Res Cogitans " and the discussion of this judgment.The third chapter is concerning the legal risks taken by the bunker supplier and buyers in bunker supply contract which includes the Maritime Lien and arrest of the ship.The fourth chapter analyzes the preventive measures of the parties.The article put forward suggestions as to protect the parties’ legitimate right and avoid the financial loss.At the end of this article,conclusions and some personal opinions are stated.