Answer
In case of Voyage Charter- Fuel is supplied by Ship Owner, so H&M pays and later through subrogation takes from Fuel supplier.
In case of Time charter – Fuel is supplied by Charterer, So, H&M pays and then takes amount from Charterer, Charterer pays from P&l cover and through subrogation P&I takes from Fuel supplier.
Process in case of Time Charter
1.Detection & Documentation – when engine damage from bad fuel is detected, the vessel’s master must immediately document the issue, including test samples of the fuel, engine condition reports & a LOP notifying the charterer of the fuel
2.Notification – the vessel owner should promptly inform the charterer of the engine damage caused by the supplied fuel & notify marine insurer to initiate any insurance claims for the repair costs.
3.Proof & causation – this requires expert analysis of fuel samples & engine condition
4.Mitigation – The Owner/Master/C/E must take reasonable steps to prevent further damage such as switching fuel & stopping use of contaminated fuel or requesting de-bunkering of bad fuel.
5.Claims handling – owner will claim damage from the charterers based on the charter party bunker clause.
6.Disputes – charterers may contest liability, suggesting other causes like previous fuel quality, improper maintenance or fuel management failures. Owners need strong proof to establish causation.