Non-lien clauses are becoming an increasingly important issue in the bunker industry. Often included in charterparties, vessel management agreements, or other contractual arrangements, these clauses are intended to prevent suppliers from placing a lien or other claim against a vessel for unpaid services or supplies.

For bunker companies, however, the commercial reality can be challenging. A supplier may deliver fuel to a vessel in good faith, relying on the vessel, its owner, charterer, or operator to pay. If payment is not made, a non-lien clause may limit the supplier’s ability to pursue effective remedies against the vessel itself.

The difficulty is compounded by the complex structure of modern shipping transactions. The party ordering the bunkers may not be the vessel owner and the supplier may have limited visibility of the contractual relationships behind the transaction. As a result, a bunker company can face significant exposure while having little practical control over the risk of non-payment.

This is why due diligence and clear contractual terms are essential. Suppliers should carefully assess who is ordering the fuel, confirm the identity and creditworthiness of the contracting party and understand whether any non-lien provisions may affect their rights. Where appropriate, suppliers may also seek express payment guarantees, credit support, or contractual protections from the relevant parties.

Non-lien clauses are not necessarily a barrier to doing business, but they highlight the importance of managing credit risk before delivery. In an industry where fuel is supplied quickly and payment may come later, understanding the legal and commercial framework behind each transaction can be just as important as the quality and availability of the bunker fuel itself.

The MFA is discussing this important issue with members. Look out for our Webinar in September and join our Legal experts and MFA suppliers and traders as we develop a basic guide for managing this important area.