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Maritime Network sends letter of demand to Olam over alleged palm oil cargo commingling
The letter said the vessel had loaded about 35,432 tonnes of palm oil products at Dumai, Indonesia, before taking on a further 4,999.715 tonnes of Malaysian crude palm olein at Port Klang for shipment to Adabiya, Egypt. — AFP file pic

 

KUALA LUMPUR, Nov 5 — Maritime Network Sdn Bhd has issued a letter of demand (LOD) to Singapore-based Olam Global Agri Pte Ltd seeking clarification over the alleged commingling of Indonesian and Malaysian palm oil cargoes before they were shipped to Egypt.

The LOD, dated October 29 and served through law firm Jaya Prem Chambers, disputes an assertion allegedly made by Olam Global Agri that Maritime Network had prior knowledge of, and consented to, the cargo arrangements before it issued three bills of lading dated September 30, 2026.

According to the LOD, Maritime Network was appointed by the vessel’s owner as port agent for its call at Port Klang and signed the bills of lading on behalf of the vessel’s master.

The letter said the vessel had loaded about 35,432 tonnes of palm oil products at Dumai, Indonesia, before taking on a further 4,999.715 tonnes of Malaysian crude palm olein at Port Klang for shipment to Adabiya, Egypt.

It said the Indonesian outward manifest and accompanying documents described the cargo as refined palm oil products, including refined palm olein, refined, bleached and deodorised (RBD) palm oil, RBD palm stearin and RBD palm kernel oil.

However, Maritime Network said it later received information raising questions over whether the Malaysian crude palm olein had been commingled with the Indonesian cargo, and whether the actual grade of certain Indonesian products matched their descriptions in the shipping documents.

The LOD acknowledged that the precise nature, composition, timing and extent of any alleged commingling remained subject to documentary verification.

It also referred to WhatsApp correspondence dated October 16, in which an Olam Global Agri representative allegedly claimed to have previously spoken to Maritime Network and informed it that the cargo was crude.

The law firm said its client disputed that the correspondence established prior notification or informed consent, adding that no contemporaneous written notification or documentary evidence of such consent had been produced.

The LOD sought details of the alleged communication, including the persons involved, the date and time, the information disclosed and the terms of any purported agreement or approval.

It also referred to emails dated October 19 and 23, in which Olam Global Agri’s representative reportedly said the company had bought the Malaysian cargo from Mewah Oils Sdn Bhd on free-on-board (FOB) terms and was not the exporter of record.

The law firm said its client was not suggesting that Olam Global Agri had automatically assumed the exporter’s statutory obligations by buying the cargo on FOB terms.

However, it maintained that the company’s involvement in the vessel’s chartering arrangements, and any instructions on loading, stowage, commingling and documentation, required clarification.

Among the documents sought were cargo quality certificates, certificates of analysis, stowage plans, quantity measurement records, surveyor reports and communications involving the vessel’s master, owner, terminal operators and shipping agents.

The LOD also cited Regulation 12 of the Malaysian Palm Oil Board (Quality) Regulations 2005, including Regulation 12(3)©, which concerns the disclosure of the ingredients and composition of blended oil palm products in relevant commercial and shipping documents, where applicable.

The law firm said its client was not making a final determination on whether any regulatory breach had occurred, adding that the matter would have to be assessed by the competent authorities based on the evidence.

Olam Global Agri was given seven days from receipt of the LOD to provide documentary evidence supporting its position on prior notification and consent, or to withdraw the allegation if it could not be substantiated.

The LOD also sought an indemnity against specified claims and losses to the extent they are attributable to the company’s conduct, and reserved Maritime Network’s right to pursue legal remedies.

 

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