ITIC: Inaccurate Ship Description by Pool Manager Led to Costly Consequences

After a shipping pool manager failed to accurately describe a tanker, leading to a substantial claim by charterers, it had to settle the claim, the International Transport Intermediaries Club (ITIC) said.

As informed, an unnamed pool manager misdescribed the tanker as being acceptable to a specific oil major, even though he had received an email from the head owner prior to fixing. The email stated that the party had rejected the vessel.

This email was overlooked by the pool manager when the tanker was fixed for a spot voyage to load ultra-low-sulfur diesel.

The fixture recap contained a clause stating: “to the best of owner’s knowledge at the time of fixing, vessel is not unacceptable to following oil majors …” The list referred to a number of companies but did not include the specific oil major.

The pool manager, however, had mentioned during negotiations that the tanker should be acceptable to this specific oil major since it was not excluded.

The charterers could not sell the cargo and had no other option than to put it into storage. They claimed USD 250,000 in damages, the cost paid by the pool manager which was reimbursed by ITIC.