Shell Pakistan Limited (SPL) and Meshe International have locked horns over the supply of Mogas as the consignment, scheduled for delivery on October 22-24, has not yet been supplied. Sources told Business Recorder on Wednesday that the price of NAPTHA was quoted at 578.05 dollars per metric tonne on October 13 by the carrier, "High Mars."
However, the carrier, "Hellespont prosperity," has quoted a price of 658.09 dollars per metric tonne on October 23. Meshe International requested on October 21 that it would not be in a position to provide a certificate of origin countersigned by the chamber of commerce for the shipment from Fujariah, saying that it was rather difficult and administratively challenging to obtain a countersigned certificate from the chamber. It requested the following amendments to the letter of credit (L/C):
-- Certificate of origin issued by the loading terminal instead of countersigned certificate from the chamber. In view of inability to present valid certificate of origin, Meshe International proposed substitution of vessel, 'High Mars' for delivery on October 27-29 with a note to accept the proposal on October 22.
The SPL, in turn, informed Meshe International that without prejudice to their legal rights, "the stakeholders jointly agreed that the vessel, 'Hellespont prosperity,' can only be accepted if Meshe International shall deem prices of the vessel, 'High Mars,' and provide the parcel without any associated financial exposure to the government of Pakistan, whatsoever it is."
The SPL also urged Meshe International to submit the loading documents of the vessel, 'High Mars,' for which an irrevocable L/C had already been established and was existent. Meshe International, in its e-mail message on October 23, alleged that vessel, 'High Mars,' was not acceptable to SPL and, therefore, the SPL had agreed for a replacement vessel arriving in Pakistan on October 27-29 window.
High Mars has since left Karachi port. In return, the SPL expressed surprise to Meshe International on October 23, and stated that the e-mail was not truly reflective of actual facts. "The question of acceptance or rejection of MT High Mars had never been decided and a discussion on possible contingencies had taken place."
The SPL response added: "We wish to inform you that Shell Pakistan is perturbed at your actions to have MT High Mars sail away from Karachi shores without Shell Pakistan's consent and we reserve our rights to seek remedies that may be available to Shell Pakistan."
After getting assurance from other oil importers from Fujirah through valid certificate of origin (duly endorsed by chamber of commerce), the SPL responded that all requirements pertaining to acceptance of import parcel by buyer has been clearly mentioned in the tender documents, which were agreed unconditionally, and urged Meshe International to stick to the terms and conditions of the contract agreement.
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