CMA CGM Takes Legal Action Against Houston Supplier Over $5 Million Fuel Contamination Claims

By Fame Last updated Mar 31, 2025

cma-cgm-sues-houston-supplier-for-$5m-in-damages-due-to-fuel-contamination — CMA CGM Sues Houston Supplier for $5M in Damages Due to Fuel Contamination

CMA CGM Group, a major player in the shipping industry, has filed a lawsuit in Houston claiming damages exceeding $5 million. The company alleges that 13 of its vessels suffered damage due too subpar fuel supplied while docked in Texas.

The legal action, lodged with the U.S. District Court for the Southern District of texas,details that between March and June 2023,CMA CGM received over 33,600 metric tons of very low sulfur fuel oil at the Port of Houston. This was part of a supply agreement with GCC Supply & Trading for maritime fuel delivery.

According to the complaint, shortly after using this fuel, several operational issues arose on board—ranging from fuel pump failures and ICU leaks to complete engine power loss leading to blackouts. CMA CGM promptly notified GCC about these complications as they emerged,” it states.The suit claims that physical damage occurred to various components including fuel tanks and engines due to this faulty supply.

The shipping giant argues that GCC should have recognized they were providing “contaminated and defective” fuel unfit for use. They assert that the supplier neglected proper testing protocols which could have identified harmful contaminants.

CMA CGM is also highlighting how these issues disrupted their operations considerably—resulting in increased costs, lost business opportunities, demurrage fees, and other damages. They are pursuing claims for breach of contract along with negligence and product liability.

The company is seeking a jury trial where they hope the court will assess their damages and determine appropriate relief.

A report released by VPS—a bunker fuel testing firm—in July 2023 revealed alarming levels of Dicyclopentadiene (DCPD) found in VLSFO bunker fuels delivered in Houston. Initially affecting at least 11 vessels there sparked widespread concern across the industry; earlier reports from March indicated over 200 ships faced similar issues after refueling in Singapore.Regulatory bodies traced these problems back to their source and imposed hefty fines on suppliers involved.