The BDN Clause That Cost a Charterer $200K
One overlooked sentence in the Bunker Delivery Note. A charter dispute. $200,000 in legal fees and lost time. All from missing one clause verification.
The BDN Clause That Cost a Charterer $200K
He skimmed the Bunker Delivery Note. Signed it.
Three months later, when charterers disputed fuel quality, he learned one clause had cost him everything.
The Incident
Charterer: European shipowner
Vessel: MV Nordic Star
Voyage: Europe to Brazil, round charter
Bunkering: Rotterdam, 1,200 MT VLSFO
Problem: Engine performance issues mid-voyage.
Charterer's Claim: Fuel didn't meet specifications—off-hire claim for delays and performance bonus.
The Missing Clause
The BDN contained this clause:
> *"Fuel grade per ISO 8217:2024, with sodium content not exceeding 60 mg/kg and catalytic fines not exceeding 70 mg/kg."*
The charterer argued fuel didn't meet these specs.
But the chief engineer had signed the BDN noting "Fuel received in good order and condition."
The Legal Battle
Charterer's Position
Owner's Defense
Arbitration Ruling
The chief engineer's signature on the BDN was deemed acceptance of fuel quality.
Without documented discrepancies noted at delivery, the owner was liable.
Final judgment: $200,000 in charterer's favor.
The Mistake
What the Chief Engineer Did
What He Missed
Critical BDN Verification
Before Signing, Verify:
The Golden Rule
If something is wrong, note it on the BDN before signing.
Write:
Once you sign without notation, you've accepted the fuel as-delivered.
The BDN Protection Checklist
Don't sign until you've verified everything.
Get the BDN Verification Checklist:
[Download the Free BDN Verification Checklist]
The $200K Lesson
That chief engineer now:
A $200,000 education.
Don't make the same mistake.
Verify every clause. Note every discrepancy. Protect yourself before you sign.