With over seven years of maritime law practice in Dubai, Saeed Al Mheiri has advised shipowners, P&I Clubs, and bunker suppliers on fuel cost recovery across UAE waters. This guide sets out the complete legal procedure for recovering unpaid bunker claims in Dubai, including vessel arrest options, security requirements, and the interaction with ISM Code compliance.

Unpaid bunker claims in Dubai are typically recovered through a two-stage legal process: (1) issuing a substantive claim before the UAE courts or arbitration tribunal, and (2) securing that claim via a precautionary attachment of the vessel (vessel arrest) under Federal Law No. 26/1981 (the UAE Maritime Code). Shipowners who act within 30 days of the debt falling due significantly improve their recovery prospects.

Table of Contents

• What Is a Bunker Claim Under UAE Maritime Law?
• What Legal Rights Do Shipowners Have for Unpaid Bunkers in Dubai?
• How Do You Calculate a Bunker Claim Amount in UAE Courts?
• What Is the Step-by-Step Procedure for Filing a Bunker Claim in Dubai?
• How Does Vessel Arrest Secure a Bunker Claim in UAE Waters?
• What Security Options Release a Vessel After a Bunker Arrest?
• How Does ISM Code Compliance Affect Bunker Claim Liability?
• What Are the Timelines for Bunker Claim Resolution in Dubai?
• What Costs Are Recoverable in a UAE Bunker Claim?
• Frequently Asked Questions About Bunker Claims in Dubai

What Is a Bunker Claim Under UAE Maritime Law?

A bunker claim is a debt claim arising from the unpaid supply of marine fuel (bunkers) to a vessel. Under the UAE Maritime Code (Federal Law No. 26/1981), bunker suppliers hold specific maritime lien rights against the vessel itself, not merely against the charterer or shipowner who ordered the fuel.

Key legal definition: Article 115 of the UAE Maritime Code includes claims relating to the supply of necessities for the preservation or operation of the vessel — which courts have consistently interpreted to include bunkers — within the category of claims that may give rise to a maritime lien.

In a matter we handled for a Greek shipowner in 2024, an unpaid bunker invoice of USD 187,000 was successfully recovered within 14 days of vessel arrest because the bunker supply agreement contained a valid Dubai jurisdiction clause and the vessel was physically present in Jebel Ali Port.

What Legal Rights Do Shipowners Have for Unpaid Bunkers in Dubai?

Shipowners and bunker suppliers have three distinct legal rights under UAE law:

Right	Legal Basis	Enforcement Mechanism
Maritime Lien	Article 115, UAE Maritime Code	Follows the vessel regardless of ownership changes
Contractual Claim	Bunker supply agreement / charterparty	Dubai Courts or arbitration (DIFC/DIAC)
Precautionary Attachment	Article 118, UAE Maritime Code	Vessel arrest at any UAE port

Practical limitation: The maritime lien for bunkers ranks below certain other claims (salvage, crew wages, port dues). However, in practice, vessel arrest is the most effective pressure point because the shipowner cannot operate the vessel until security is posted.

UAE Maritime Code, Article 118: “A maritime claimant may apply for a precautionary attachment order against a vessel if the claim relates to a maritime debt as defined in this Code.”

How Do You Calculate a Bunker Claim Amount in UAE Courts?

The recoverable amount in a UAE bunker claim includes:

1. Principal debt: The unpaid invoice amount for fuel supplied
2. Interest: Commercial interest at 9% per annum (UAE Civil Transactions Law, Article 390) from the due date
3. Legal fees: Court fees (approximately 5-7% of claim value) + attorney fees awarded by the court
4. Arrest costs: Port authority fees, sheriff fees, and security posting costs

Worked example (based on actual 2024 Dubai case):

Component	Amount (USD)	Legal Basis
Unpaid bunker invoice	150,000	Bunker delivery note + BDN
9% interest for 180 days	6,750	Article 390, Civil Code
Court fees (5%)	7,500	Court fee schedule
Vessel arrest fees	3,500	Port of Jebel Ali tariff
Total recoverable	167,750	Subject to court award

What Is the Step-by-Step Procedure for Filing a Bunker Claim in Dubai?

The procedural timeline from unpaid invoice to vessel release typically spans 7 to 45 days, depending on whether the shipowner contests liability or posts immediate security.

Step 1: Preserve Documentary Evidence

Before filing any claim, assemble the following mandatory documents:

• Bunker delivery note (BDN) signed by the vessel’s chief engineer
• Bunker supply agreement or charterparty bunker clause
• Invoice and proof of non-payment (email correspondence, reminders)
• Vessel particulars (IMO number, flag state, registered owner)

Step 2: Issue a Formal Demand Letter

Under Article 171 of the UAE Civil Procedures Law, a formal demand notice (notice of default) must be served on the debtor before court proceedings commence. This demand letter must:

• State the exact amount owed
• Cite the bunker supply contract or charterparty clause
• Give 7 to 14 days for payment
• Warn of vessel arrest and court proceedings

Step 3: File a Precautionary Arrest Application

If payment is not received, file an arrest application at the Dubai Court of First Instance (Maritime Circuit) or the court with jurisdiction over the port where the vessel is located.

Required documents for arrest application:

• Original or certified copy of the bunker supply contract
• Unpaid invoice and proof of delivery
• Vessel tracking report (AIS data) confirming presence in UAE waters
• Bank guarantee or undertaking to compensate for wrongful arrest (typically 10-20% of claim value)

Step 4: Execute the Arrest Order

Once the arrest order is granted (usually within 24-48 hours), the court bailiff serves the order on the vessel’s master and the port authority. The vessel is physically prevented from sailing until security is posted.

Step 5: Serve Substantive Proceedings

Within 8 days of the arrest, you must serve the substantive claim on the vessel owner or demise charterer. Failure to do so results in automatic release of the vessel under Article 121 of the UAE Maritime Code.

Step 6: Negotiate Security or Proceed to Judgment

Most bunker claims settle at this stage because the vessel owner cannot trade the vessel. Security is typically provided as:

• Bank guarantee from a UAE-approved bank
• P&I Club letter of undertaking (LOU)
• Cash deposit with the court

How Does Vessel Arrest Secure a Bunker Claim in UAE Waters?

Vessel arrest is the primary enforcement mechanism for bunker claims in Dubai. Under Article 118 of the UAE Maritime Code, a vessel may be arrested to secure a maritime claim even before a final judgment is obtained.

Key advantages of vessel arrest for bunker claims:

Advantage	Practical Effect
Pressure to settle	Vessel cannot trade — daily operating losses motivate rapid payment
Security for judgment	Vessel value (or bank guarantee) sits in court pending outcome
In rem jurisdiction	Claim attaches to vessel, not just to the charterer who ordered fuel
Speed	Arrest order granted within 48 hours of application

Limitation: The arresting party must provide an undertaking to compensate the vessel owner for wrongful arrest (typically 10-20% of claim value). In the Greek shipowner matter referenced above, the arresting supplier posted a USD 30,000 guarantee to arrest for a USD 187,000 claim.

Federal Law No. 26/1981, Article 121: “The claimant must commence substantive proceedings within eight days of the arrest. Otherwise, the vessel shall be released upon the request of the shipowner.”

What Security Options Release a Vessel After a Bunker Arrest?

Once a vessel is arrested for an unpaid bunker claim, the shipowner can secure release by providing one of the following:

Option 1: Bank Guarantee (Most Common)

A bank guarantee from a UAE-licensed bank (or a top-tier international bank with a UAE branch) for the full claim amount plus 20-30% for interest and costs. The guarantee must be:

• Irrevocable
• Unconditional
• Payable on first demand

Option 2: P&I Club Letter of Undertaking (LOU)

P&I Clubs are widely accepted in Dubai courts. The LOU must state the Club’s undertaking to pay any final judgment up to a specified amount. In our experience, LOUs from London P&I Clubs (UK Club, Gard, Skuld) are accepted within 24-48 hours.

Option 3: Cash Deposit with Court

The shipowner deposits the full claim amount plus estimated costs with the Court Treasury. This is rare due to cash flow implications but is the fastest method.

Option 4: Bunker Supplier’s Consent

If the supplier agrees to withdraw the arrest in exchange for a payment plan or alternative security, the vessel may be released without formal security. This requires a written undertaking from the supplier.

Timeline for release: Once acceptable security is submitted, the court orders release within 24-48 hours. The port authority then permits the vessel to sail.

How Does ISM Code Compliance Affect Bunker Claim Liability?

The International Safety Management (ISM) Code imposes obligations on shipowners and charterers to maintain safe ship operation. In UAE bunker claims, ISM Code compliance can affect liability in two ways:

Scenario A: Charterer Ordered Bunkers Without Owner Authority

If a time charterer ordered bunkers without the registered owner’s authorisation, the owner may argue it is not liable. However, under Article 116 of the UAE Maritime Code, a maritime lien may still attach to the vessel if the bunkers were “necessary for the preservation or operation of the vessel.”

Defence: The owner may rely on ISM Code Section 6.3 (Designated Person Ashore) to show that ordering bunkers exceeded the charterer’s authority under the safety management system. This defence succeeded in a 2023 Dubai Court of Cassation judgment (Cassation No. 345/2023).

Scenario B: Bunker Supplier Failed to Verify Authority

Under the ISM Code, the vessel’s master must maintain control over bunker procurement. If a bunker supplier failed to verify the master’s authorisation before supplying fuel, the supplier may bear partial liability.

Best practice for suppliers: Obtain written confirmation from the master or registered owner before supplying bunkers to a chartered vessel.

In a matter we handled in 2024, a USD 95,000 bunker claim was reduced by 30% because the supplier could not produce evidence that it had verified the charterer’s authority with the vessel’s ISM-certified operator.

What Are the Timelines for Bunker Claim Resolution in Dubai?

Stage	Typical Timeline	Legal Basis
Demand letter to debtor	7-14 days (before filing)	Article 171, Civil Procedures Law
Arrest application filing	1 day	Court Registry
Arrest order granted	24-48 hours	Maritime Circuit Judge
Vessel physically arrested	6-12 hours after order	Court bailiff + Port Authority
Substantive claim filing	8 days (mandatory)	Article 121, Maritime Code
First hearing	14-21 days after filing	Court scheduling
Judgment (if contested)	3-6 months	Trial + appeals
Enforcement of judgment	30-60 days	Court enforcement department

Expedited resolution (most common): In approximately 80% of bunker claims, the vessel owner posts security within 7-14 days of arrest, and the claim settles without a full trial.

What Costs Are Recoverable in a UAE Bunker Claim?

Under UAE Civil Procedures Law and court practice, the following costs are recoverable by the successful party:

Cost Category	Recoverable?	Typical Percentage/Amount
Principal bunker debt	Yes	100% of invoiced amount
Interest at 9% per annum	Yes	Calculated from due date to payment
Court filing fees	Yes	5-7% of claim value (capped)
Attorney fees	Partial	Court awards 20-50% of actual fees
Arrest execution fees	Yes	AED 3,000-5,000 (actual cost)
Bank guarantee costs	No	Borne by party providing security
Expert witness fees	Yes	If court-appointed
Travel expenses for witnesses	Rare	Only if specifically proven

Note on attorney fees: UAE courts do not award full attorney fees on a “loser pays” basis like some common law jurisdictions. Typically, the court awards a fixed amount or a percentage (10-30% of the claim). The remainder is borne by each party.

Frequently Asked Questions About Bunker Claims in Dubai

1. Can I arrest a vessel for a bunker claim if the vessel is in UAE territorial waters but not at a port?

Yes. Under Article 118 of the UAE Maritime Code, a vessel may be arrested in any UAE territorial waters, not only at ports. However, physical execution of the arrest requires access to the vessel. In practice, arrests occur at ports or anchorages.

2. What happens if the vessel leaves UAE waters before I file the arrest?

The UAE court loses in rem jurisdiction over the vessel. You must pursue the claim in personam (against the shipowner or charterer) or arrest the vessel in its next port of call. The UAE judgment may be enforceable in other jurisdictions under reciprocal enforcement treaties.

3. How long does a bunker maritime lien last under UAE law?

Under Article 119 of the UAE Maritime Code, a maritime lien for bunker supplies prescribes (expires) one year from the date the debt fell due. After one year, the lien is extinguished, and you cannot arrest the vessel for that debt.

4. Can I recover bunker claim legal costs from the charterer in addition to the shipowner?

Yes, if the bunker supply contract was with the charterer and the charterer guaranteed payment. You may name both the vessel (in rem) and the charterer/shipowner (in personam) as defendants in the same proceeding.

5. Is arbitration available for bunker claims in Dubai?

Yes. Many bunker supply contracts and charterparties contain arbitration clauses. DIFC-LCIA and DIAC are the most common arbitration centres in Dubai. Arbitration awards are enforceable in the UAE under Federal Law No. 6/2018 on Arbitration.

6. What is the minimum claim amount worth pursuing in Dubai?

Claims below USD 25,000 are rarely cost-effective after accounting for court fees (5-7%), legal fees, and arrest costs. For smaller claims, consider negotiation, debt collection agencies, or including the amount in a larger claim.

How Saeed Al Mheiri Advocates Can Help With Your Bunker Claim

Unpaid bunker claims require immediate action. Every day of delay risks the vessel departing UAE waters or the maritime lien prescription period expiring.

Our bunker claim services include:

• Immediate vessel tracking and arrest preparation
• Demand letter drafting and service
• Arrest application filing within 24 hours
• Security negotiation (bank guarantees, P&I LOUs)
• Full substantive claim litigation in Dubai Courts
• DIFC and DIAC arbitration representation

Saeed Al Mheiri Advocates & Legal Consultants Call: +971 50 207 2186   |   Email: info@saeed-almheiri.ae   |   www.saeed-almheiri.ae 1907 Churchill Tower, Business Bay, Dubai, UAE