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Panama Court Clears Path for $186 Million Glencore Bunker Case to Move Forward

oceankida - marine ship supplier Panama Court Clears Path for $186 Million Glencore Bunker Case to Move Forward
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A Panamanian court has ruled that a $186 million lawsuit against Glencore over the alleged supply of contaminated bunker fuel can proceed, allowing a major maritime legal dispute dating back to 2018 to continue in Panama. The case was brought by Kamca Holdings and Kamca Bunkering and Trading, which allege that Glencore knowingly supplied contaminated fuel in March and April 2018, causing damage to more than 107 vessels.

According to the report, Panama’s Second Maritime Tribunal determined that the claim was not time-barred and that Panama has exclusive jurisdiction over the matter. The lawsuit argues that the contaminated fuel severely affected vessels operated by Kamca’s principal clients and ultimately caused the company to lose business, face insolvency, and suffer serious legal and financial consequences.

The case adds another layer to a long-running legal battle involving proceedings in multiple jurisdictions. Kamca had already obtained a favorable ruling in London arbitration related to one of its contracts with Glencore, while Glencore separately pursued action in New York State courts in an attempt to halt the Panama proceedings. Although the New York court ruled in Glencore’s favor, the Panamanian tribunal concluded in October 2025 that the case should be heard in Panama under its mandatory jurisdiction rules.

The article also notes concerns raised by Panamanian legal figures over the use of foreign court action to pressure local proceedings. The matter gained further sensitivity following the death of prominent Panamanian maritime lawyer Francisco Carreira, who had represented Kamca and reportedly received a contempt order and financial penalty from a New York court shortly before his passing.

The dispute has also drawn comparisons to a 2022 contaminated bunker fuel case in Singapore, where investigations found that Glencore continued supplying fuel blended with product containing high levels of chlorinated organic compounds (COC). That incident led Singapore’s Maritime and Port Authority to suspend Glencore’s bunker supplier license for two months.

 


OceanKida is dedicated to keeping our clients informed with the latest news and updates from Panama’s maritime sector. As a reliable marine ship chandlers, we go beyond providing high-quality products by sharing valuable insights on industry innovations, regulatory changes, and best practices. Our goal is to ensure that your vessels are not only well-equipped but also operate efficiently and safely with the support of timely and relevant information.