CMA CGM has sued US marine fuels firm GCC Supply & Trading LLC over the alleged supply of contaminated VLSFO to its vessels.
The complaint filed in the U.S. District Court for the Southern District of Texas details an incident between March and June 2023, during which CMA CGM took delivery of 33,628 metric tons of very low sulfur fuel oil (VLSFO) for its vessels at the Port of Houston.
“Shortly after the fuel was supplied, the vessels encountered significant operational issues, including but not limited to fuel pump seizures, ICU leakages, loss of engine power and propulsion in some cases leading to blackouts. CMA CGM put GCC on notice of these issues as soon as they became known” the complaint alleges.
Furthermore, the complaint goes on to state that as a result the vessels suffered physical damage to their fuel tanks, fuel purifiers, fuel systems, and their engines and engine components, causing CMA CGM damages.
The filing does not set out what contaminant was present in the fuel that could have caused the damage. The fuel was sold as meeting ISO 8217:2010 specifications.
Additionally, CMA CGM claims that it faced disrupted and delayed operations, leading to increased operational costs, lost opportunities, demurrage, and additional damages. As a result, the company is suing for breach of contract, breach of warranties, negligence, and product liability.
The company alleges that GCC should have known it was supplying “contaminated, defective, off-specification, unfit for consumption” fuel that would cause physical harm to the vessels.
CMA CGM supports that the supplier failed to implement reasonable practices and policies to properly test and screen the fuel for harmful contaminants or components.
