Olam Global Agri Pte Ltd has received a letter of demand (LOD) from Maritime Network Sdn Bhd, which is requesting an explanation regarding the suspected mixing of Malaysian and Indonesian palm oil shipments. The legal notice, served via the law firm Jaya Prem Chambers, concerns a shipment destined for Adabiya, Egypt.
Disputed Logistics and the September 30 Bills of Lading
The conflict centers on a shipment involving 35,432 tonnes of Indonesian palm oil products loaded at Dumai, followed by an additional 4,999.715 tonnes of Malaysian crude palm olein taken on at Port Klang. Maritime Network, acting as the vessel’s port agent, issued three bills of lading on September 30, 2026, on behalf of the vessel’s master. Maritime Network later said it had received information suggesting Malaysian crude palm olein may have been commingled with the Indonesian cargo, and it disputes Olam Global Agri’s assertion that it had prior knowledge of, and consented to, the arrangements.
The LOD directly challenges Olam Global Agri’s assertion that the shipping agent had prior knowledge of the blending arrangements. While the Indonesian manifest described the cargo as a variety of refined products—including refined palm olein, refined, bleached and deodorized (RBD) palm oil, RBD palm stearin, and RBD palm kernel oil—Maritime Network later flagged concerns that the Malaysian crude palm olein had been commingled with these refined Indonesian products.
The Battle Over WhatsApp and Email Correspondence
The evidentiary tug-of-war revolves around a series of digital communications from October. An Olam Global Agri representative cited WhatsApp correspondence dated October 16, claiming that Maritime Network had been informed that the cargo was crude. The law firm representing the port agent flatly disputes this, arguing that no contemporaneous written evidence exists to support the claim of informed consent.
Additionally, exchanges from October 19 and 23 highlight Olam Global Agri’s stance that it acquired the Malaysian cargo from Mewah Oils Sdn Bhd under free-on-board (FOB) terms and was not the party acting as the exporter of record. While Maritime Network acknowledged in its letter that it is not suggesting Olam automatically assumed an exporter’s statutory obligations, it maintains that the company’s active role in chartering, loading, and stowage instructions necessitates full transparency.
Olam Global Agri Faces Seven-Day Deadline to Provide Cargo Documents
The dispute touches on potential breaches of the Malaysian Palm Oil Board (Quality) Regulations 2005. Specifically, the LOD cites Regulation 12(3)(c), which concerns the disclosure of ingredients and composition for blended oil palm products in commercial and shipping documentation. Maritime Network has stopped short of making a final determination on whether a regulatory breach occurred, noting instead that the matter requires assessment by competent authorities.
The letter of demand requires Olam Global Agri to provide documentary evidence—including cargo quality certificates, stowage plans, and surveyor reports—within seven days of receipt. Should the company fail to substantiate its claims of prior notification or withdraw the allegation, Maritime Network has reserved the right to pursue further legal remedies, including seeking an indemnity against any losses arising from the incident.
