We herein wish to inform our Clients of groundless pollution claims that have recently been observed in Saudi Arabia being raised by the Port Authorities (PDC) causing unreasonable delays and costs.
Following a stability incident that one of our Clients faced in October at King Abdullah Port, and, despite the fact that the Shipowner took all the necessary steps to prevent a pollution claim to arise, PDC raised a pollution claim of SAR 4,000,000. Based on Article No 18 of the Saudi Regulation of Shipping Agents (2nd Edition) dated 03/11/1441H, a request for Bank guarantee was raised. In similar situations in other countries, a Letter of Undertaking is accepted by Shipowners’ P&I Underwriters in order for the vessel to sail. However, PDC requested a report to be issued by a PDC approved company. The Shipowner and Underwriters complied with the request. However, despite that the report made evident that no pollution was caused by the vessel, PDC insisted that a Bank Guarantee be issued. Unfortunately, the involvement of Saudi Arabia banks is a timely and costly procedure, adding an additional hinder to vessels’ release.
In addition to the above, delays continued due to the fact that governmental entities were involved in all stages and continued even after the Bank Guarantee was issued. Total waiting time for the vessel was 3 months.
We therefore kindly suggest to all our Clients to notify us shall any of their vessels call to Saudi Arabia in order to appoint a correspondent and take proactive steps to avoid similar situations