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A row is brewing over bill of lading for imported diesel which was scheduled to arrive in Mombasa by end of July 2010 but delayed.
A row is brewing over bill of lading for imported diesel which was scheduled to arrive in Mombasa by end of July 2010 but delayed.

The net implication is all marketers will pay more money to Gulf Energy the importer due to issuing of new dates on August 5 this year and this likely to be past on to consumers.

Gulf Energy informed marketers that the cargo could not arrive in July 29 to 31 date range at Kipevu oil terminal due to lack of storage space.

Al-leyl Petroleum is now querying the change of date.

A bill of lading is a document issued by a transporter acknowledging receipt of specified goods for conveyance (transport) to a named place, setting terms of contract besides providing for proper delivery.

Correspondence seen by the Daily Nation shows industry players have divergent views if open tender system (OTS) rules allow for variation of bill of lading as the diesel arrived on August 6, 2010.

Gulf Energy on June 22, 2010 won the contract to import 39,839 metric tonnes of diesel.

Under OTS, a company that submits the lowest bid imports either Murban crude oil or refined petrol, jet A-1 and diesel on behalf of other marketers in Kenya.

Al-leyl said in correspondence sent on August 6 to Shell (industry supply coordinator) the cargo’s bill of lading should be 10 days prior to first day of tender stipulated date range (July 19, 2010) or earlier.

The firm said it had not received provisional or final invoice but after pursuing the matter with Gulf Energy, was on August 2 sent a copy of price build up indicating bill of lading date as July 14, 2010.

The correspondence sent to other firms said on afternoon of August 6 while trying get to hard copies of invoice, Al-leyl was informed new invoices were being prepared with a bill of lading dated August 5.

Al-leyl said change of bill of lading had huge impact on freight on board due to fuel price rise as Gulf had communicated there was ship to ship transfer from MT Ambrosia to MT Alpine Liberty.

“We are wondering whether it is possible for a vessel to be in Mombasa with a bill of lading date later than arrival date range,” said the marketer.