Professional Documents
Culture Documents
Bunkers and Bunkering January 2014 PDF
Bunkers and Bunkering January 2014 PDF
published by Gard AS
Bunkering
2
Contents
Introduction.................................................................................................................... 4
Bunkers contracts.......................................................................................................... 5
Low-sulphur fuels explained......................................................................................... 6
USCG detains vessel for failure to use low sulphur fuel oil
in the North American ECA...................................................................................... 7
Turkey – New requirements for fuel oil sulphur content............................................ 8
Fuel handling and treatment on board....................................................................... 9
EU – de-bunkered off-spec fuel is not waste............................................................ 10
Bunker Sampling......................................................................................................... 11
Bunkers and bunkering - It’s nothing to do with your golf swing .......................... 12
Fines for burning non-compliant fuel in EU ports.................................................... 15
California low sulphur fuel changes 1 January 2014................................................. 16
North American ECA requirements after 1 August 2012......................................... 17
Canada implements North American ECA requirements........................................ 18
Hull and machinery incident - Consequences of using
off-specification bunkers......................................................................................... 19
The importance of an efficient fuel oil treatment system........................................ 20
Marpol Annex VI - New risks and challenges for owners and charterers................ 22
Marpol Annex VI - Solving the low sulphur issue...................................................... 25
Marpol Annex VI – Challenges in operating on low sulphur fuel............................ 27
Off-spec bunkers – Some practical cases.................................................................. 28
Controlling bunker costs............................................................................................. 30
Liquid gold - Fuel oil and lubricating oil................................................................... 36
Bunker Quality............................................................................................................. 38
Some technical aspects of marine fuels testing........................................................ 39
Effects of off-spec bunkers......................................................................................... 42
Main Engine Damage Due to Ignition Delay............................................................ 44
The interplay of fuel and lubricating oil quality on the reliability
of diesel engines..................................................................................................... 45
Bunker spills................................................................................................................. 47
Charterer’s Liabilities and Bunkers............................................................................. 50
P&I incident – How not to do it – Bunker operations............................................... 51
Stone cold bonkers – FD&D bunker disputes........................................................... 52
Disclaimer
The information contained in this publication is compiled from material previously published by Gard AS and is provided for
general information purposes only. Whilst we have taken every care to ensure the accuracy and quality of the information
provided at the time of original publication, Gard AS can accept no responsibility in respect of any loss or damage of any
kind whatsoever which may arise from reliance on information contained in this publication regardless of whether such
information originates from Gard AS, its shareholders, correspondents or other contributors.
Introduction
This booklet contains a collection of 3. If the supplier takes other samples 9. Expert advice should be considered
loss prevention materials relating to at the time of the delivery, try to and a reliable fuel testing services
bunkers and bunkering, which has been establish how and when they were such as DNV Petroleum Services
published by Gard over the years. taken. Issue a protest if you are not (DNVPS) or Lloyds Register (FOBAS)
invited to witness the sampling. should be used to obtain advice on
Problems occurring onboard the how to proceed in order to solve
vessels and which arise from bunker 4. Use a fast, reliable testing service to the particular problem and to avoid
related issues are diverse, and may analyse the samples. damage and mitigate any losses.
involve disputes varying from engine/
equipment problems and vessel delay 5. Segregate new fuel from that 10. Contact the engine manufacturer as
to off loading/re-bunkering. Main already held onboard. well as the fuel supplier for advice.
and auxiliary engine related claims Further action will depend on which
constitute approximately 31 per cent of 6. Avoid using new fuel until the parameter is off-specification and/or
Gard’s total hull and machinery claims. analysis results have been what the particular problem is. The
This figure should also be compared considered and it has been degree of quality deviation from the
with statistics from the industry established that the fuel is suitable. specification must be considered.
indicating that 80 percent of all engine
breakdowns are related to problems 7. Maintain accurate daily records of 11. The charterer should be notified,
with either the fuel or the lubricating oil. the contents of and consumption if the charterer purchased the fuel,
from each fuel tank and other interested parties.
As with most claims, bunker related
claims can be avoided. The following If off-spec bunkers have been 12. The parties should inform their
points may serve as a reminder and delivered and are found to be insurers.
assist in ensuring a claim free voyage. unsuitable for use the bunkers
should be off-loaded and replaced
1. Be selective when choosing a by new on-spec bunkers. If inferior
supplier. Order fuel to desired ISO bunkers have to be used or have
grade and describe the required already been used the following
grade in the charterparty as well as should be done:
in the requisition to supplier.
8. The vessel should immediately
2. Take samples at the time of delivery notify the shipowner if it is
and obtain confirmation from the experiencing problems with
suppliers that the samples are off-spec fuel. If the shipowner
representative. Ensure that the purchased the fuel directly from
samples taken are properly labelled. the supplier, he should notify the
bunker supplier and forward a copy
of the test results.
Gard News looks at some of the issues days after delivery. The time limit for Insurance
regarding contracts for the supply of producing claims in respect of quality Most insurance contracts provide that
bunkers which may affect shipowners is normally 30 days, with very strict the cover may be prejudiced if the
and charterers. procedural steps to be followed by the assured has waived his right to claim
buyer. damages from third parties. However,
Contracts for the supply of marine this does not normally apply to
bunkers may give rise to a number Limitation of liability contracts which are considered “usual”
of challenges to owners, charterers Contracts normally contain limitation of or “customary” in a trade. Hence, as
and sellers of bunkers. A close study liability provisions whereby the sellers’ long as the contract entered into may
of these contracts will reveal onerous liability is limited to the price charged be considered “usual”, insurance cover
liabilities and responsibilities put on the under the contract or the cost of should not be prejudiced.
buyers, be they charterers or owners. removal of the relevant bunkers.
Conclusion
Contracts relating to sale of bunkers Not surprisingly, liability for Charterers and owners should carefully
often include provisions of a general consequential losses and personal consider all provisions before signing a
nature, which apply to all dealings injury are usually excluded. In addition, bunkers supply contract. This may help
between the parties and may well be some contracts provide that any claim to avoid unpleasant surprises.
given priority over other contracts. against sellers will be deemed to
Affiliates of the sellers may also be be abandoned if the sellers are not
affected by the general conditions even provided with bank security for costs.
if the buyer may not be aware that a
company selling bunkers is an affiliate. Spill during bunkering
Contracts may have clauses regulating
Quality and quantity spillage and if they do the sellers
Quality may be defined as sellers’ will normally be authorised to take
commercial grades offered to whatever measure they deem necessary
customers at the time and place of to minimise damage. Costs will be
delivery. However, contracts often paid by the party causing the spill or
contain provisions like “the seller apportioned according to blame if both
makes no warranties of quality except parties are at fault.
for being sellers’ commercial grades at
the time and place of delivery”, or “the Lien
seller does not provide any guarantee Certain bunker supply contracts
nor warranty as to the satisfactory provide that the sellers “shall have
quality, fitness or suitability of products the right to assert a lien against the
provided”. Such provisions may cause vessel covering the fuels delivered”,
difficulty if a claim for quality is to be regardless of whether the buyer is
pursued. the owner or charterer of the vessel.
By accepting this clause the charterer
Contracts may also provide that would give a third party a contractual
bunkers to be delivered shall be lien on property they do not own. The
determined by the sellers’ preferred legal implications of such a clause are
method of measuring and that the unclear.
buyer will be charged according to the
measurements taken by the seller. The Indemnity clauses
buyers are often encouraged to have an Certain contracts contain an indemnity
independent surveyor present during clause stating that the buyer shall
measuring. However, contracts may indemnify the sellers for “any and all
include clauses such as “determination costs, claims demands or liabilities,
of quantity shall be made solely by the damage to property or personal injury...
seller”. unless the same is due to the sole
negligence of the seller”. Any incident
Time limits not caused solely by the negligence
Claims in respect of bunkers delivery of the sellers may therefore trigger
usually have very short time limits and liability to indemnify. Some contracts
often there are different time limits for may stipulate that the sellers’ liability
quantity and quality claims. According is limited to damages and costs
to many standard contracts, claims caused by gross negligence or wilful
for short delivery are time-barred 15 misconduct of the seller.
explained
Why is there a drive towards the use of are saleable commodities. The recovery is highly reactive and can reduce
low-sulphur fuels? process is highly efficient, with a typical the lubrication properties of diesel,
recovery rate of 99 per cent. a significant problem for rotary
Whilst shipping, with relatively low injector pumps which use the diesel
CO2 emissions compared with other Not all crude oils extracted from the for lubrication. Varying levels of
forms of transport, is regarded as ground are identical. Crude oil is made hydrotreatment result in the lubrication
the most energy-efficient means of up of many different hydrocarbon properties of diesel varying, depending
mass transportation, the global trend components, ranging from light ends on the location of the refinery or the
towards reducing emissions from all (aromatic hydrocarbons) to the heavier source of their crude oil.
industry sectors has led to recent ends (non-aromatic – oily). There are
calls to improve energy efficiency many forms and within those forms Acid rain
and control emissions in international there are many different compositions. Sulphur, when burnt in air, converts into
maritime transport. Shipping is In the traditional crudes there is a large sulphur dioxide (SO2), which, when
becoming recognised as one of the difference in viscosity and sulphur released into the atmosphere, can form
most significant sources of localised content. The more viscous oils tend to an acidic solution, dissolving in rain to
air pollution and acidification in the contain significant amounts of heavier form acid rain. This causes widespread
European Union. A significant element ends, having a lower API1 gravity and damage to the environment, affecting
of the pollution from shipboard sources higher sulphur content, whereas the lakes and forests, and has been blamed
has been identified as being from the less viscous oils are predominantly for erosion damage to buildings and
flue gas emissions containing sulphur made up of the lighter ends and have structures of historic importance.
dioxide (SOx). a lower sulphur content. The heavier
the crude, the greater the expense Although acid rain is so weak as not to
Some major players in the shipping to extract usable components. It is cause immediate danger, a prolonged
industry have already taken the initiative possible with some very light sweet build-up does have significant effects
of switching to low-sulphur fuel and crudes to burn them directly in diesel on forests, causing the nutrients in the
investing in finding alternative sources engines without any significant soils to dissolve and be washed away.
of “green” fuel. processing. Crude oil extracted from The release of aluminium into the soil,
the ground is classified as sweet or which blocks the trees’ ability to absorb
But why is sulphur such a villain? sour, depending on the level of sulphur nutrients, and the washing of the tree
naturally occurring in the crude. High leaves’ natural waxy deposits, restrict
Origin concentrations of sulphur dictate sour their ability to perform photosynthesis.
Sulphur (brimstone) is a naturally crude, while low levels are indicative This combined attack can leave trees
occurring element and is found freely of sweet crude. Commercially, sweet open to disease and damage by insects
within the earth’s crust and is essential light crude has been preferred and and weather. Minor changes in the
to life, forming a constituent part of therefore these resources have been PH levels of rivers and lakes can affect
body fats and bone. It is from here consumed at a far greater rate than the some species while not affecting others,
that sulphur finds its way, through the less commercial heavier sour crudes. causing very intense plankton blooms,
passage of millions of years, into the However, in the future, refineries will which go on to form very deadly toxins.
earth’s supply of crude oil. Most of the need to use the heavier crudes as
oil supply is found between layers of supplies of the light crudes diminish. The relationship between acid rain,
sedimentary rock, this being formed As the supply of light sweet crude has pollution and fossil fuels was first
by the layering of sea bed deposits progressively declined since 2000, discovered in 1852 by Scottish chemist
and free organic material settling. The the demand has increased and this Robert Angus Smith, but it was not
industrious work of anaerobic bacteria has been matched by the increased until the middle of the 20th century
consumes the free organic matter requirement for low-sulphur fuels. that the first significant steps to control
converting it into simple hydrocarbons air pollution were taken, gradually
with the leaching of sulphur from the Why is sulphur undesirable in fuel? progressing into the current focus on
surrounding rock, resulting in crude Sulphur has several undesirable shipping emissions.
oils having varying degrees of sulphur properties when combined with
content. the internal combustion engine. It Footnotes
is acidic in nature, which can result 1 American Petroleum Institute.
Extraction in the corrosion of the constituent 2 A catalytic converter is a vehicle
There are several methods for metal parts, and is known to poison emissions control device which converts
extracting sulphur. The cheapest and catalytic converters,2 i.e., to reduce toxic by-products of combustion in
most widespread is hydrotreatment, catalytic activity, thereby reducing the the exhaust of an internal combustion
a process that involves treating the effectiveness of exhaust systems. engine to less toxic substances by way
product with hydrogen. The removed of catalyzed chemical reactions.
sulphur is often in the form of H2S and Extraction of sulphur through
must be converted into either elemental hydrotreatment involves treating the
sulphur or sulphuric acid, both of which sulphur with hydrogen. Hydrogen
As part of the measures implemented by local regulators and Gard has been Directive for the sulphur content of
to prevent and reduce air pollution, advised that as of 1 January 2012, marine fuels and of MARPOL Annex VI.
MARPOL Annex VI sets out the Turkey will enforce new regulations
requirements for the sulphur content covering the limits of the sulphur Based on information published by the
of any fuel oil used onboard ships in content of marine fuels used by vessels Turkish Chamber of Shipping and the
general and for the Emission Control within its domestic territorial waters. Turkish General Directorate of Marine
Areas (ECAs) in particular. However, The purpose of the new regulations Transport in September 2011, the new
stricter regulations covering the sulphur is reportedly to align these with the Turkish requirements are:
content of fuel oil may also be enforced requirements contained in the EU
Effective date Type of vessel and operation Sulphur content limit required
All vessels arriving at Turkish ports and Marine fuels at or below 0.1% sulphur
1 January 2012 all inland waterway vessels sailing on
Turkish inland waters
All passenger vessels providing regular Marine fuels at or below 1.5% sulphur
services in areas covered by Turkey’s
marine jurisdiction
It has also been indicated that Turkish and artificial lakes, reservoirs, fisheries According to Gard’s correspondents,
flagged vessels, when sailing within and rivers of Turkey; the Turkish Straits, information about the new fuel
“SOx Emission Detection Fields as the Bosporus and the Dardanelles, and regulations has not been readily
defined by the International Maritime the Marmara Sea are reportedly not available and there is no clear indication
Organization” cannot use marine fuels part of this definition. However, it has of how the Turkish authorities will
with a sulphur content exceeding been indicated that vessels transiting interpret them. Prior to entering Turkish
1.5%. Assuming that this refers to the the Turkish Straits may still be subject territorial waters, Members and Clients
ECAs defined in MARPOL Annex VI, to the new regulations if their stay at should also check with local sources
Members and Clients should be aware an anchorage whilst awaiting passage and/or their local agents whether there
that the requirements of MARPOL exceeds 2 hours. is any additional or new information
Annex VI, i.e. the use of marine fuels at available from the authorities.
or below 1.0% sulphur content within • There are currently no detailed
ECAs regardless of flag, will prevail. indications as to how the Turkish We would like to thank Gard’s
authorities intend to follow-up the new correspondents in Turkey, Kalimbassieris
Gard’s correspondents in Turkey advise regulations and what the consequences Maritime Ltd and Vitsan Mümessillik
that, to their knowledge: will be of contravening the regulations. ve Musavirlik A.S., for the above
information.
• The regulations apply to all vessels Gard’s Members and Clients trading to
safely at berth or at anchor within the Turkey should ensure that their vessels
boundaries of any port, and staying comply with the new Turkish regulatory
at berth or at anchor for more than 2 requirements by 1 January 2012. It is
hours. Fuel replacement operations important that operators specify, and
must take place in the shortest possible crew members verify, that the sulphur
time following the vessel’s arrival in level in the bunker delivery note
port. conforms to ISO 8217 and is within the
sulphur limits set by local regulators
• “Inland waters” means the natural and MARPOL.
treatment on board
EU – de-bunkered off-
Gard Alert, 20 January 2014
A recent guiding ruling from the Court interpretation has resulted in a number market. However, the Dutch authorities
of Justice of the European Union (CJEU) of criminal investigations and cases decided that this oil should be treated
states that off-spec oil need not be against bunker providers for failure as waste and pursued Shell for criminal
handled as waste. to follow environmental regulations fines.
when de-bunkering fuel that did not
meet contract specifications but was
As previously reported (see Gard Alert The CJEU found that the buyer’s
nonetheless suitable for reconditioning
“De-bunkering in The Netherlands” rejection of the cargo as off-spec
and resale.
dated 26 January 2012) there have under the sales contract was not
been some uncertainties regarding decisive and held that “a consignment
the Dutch authorities’ interpretation of The recent CJEU ruling followed an of diesel accidentally mixed with
the EU waste legislation and at what appeal by Shell Nederland and Shell another substance is not covered
time bunker fuel not compliant with Belgium against a prior ruling by the by the concept of ‘waste’, provided
the stated specifications (off-spec fuel) Dutch environmental authorities. The that the holder of that consignment
is to be considered as waste. Current case concerned contamination of does actually intend to place that
regulations define ‘waste’ as “any a parcel of ultra low sulphur diesel consignment, mixed with another
substance or object which the holder (ULSD) with remnants of MTBE. As product, back on the market.”
discards or intends or is required to a result, the flashpoint became too
discard” and Dutch environmental high and the ULDS was considered
Members and Clients are advised to
authorities have in some instances off-spec by the buyer. Shell agreed to
take note of the recent ruling by the
interpreted this statement to mean that refund the purchase price and take the
CJEU when considering options for
if a buyer rejects a parcel of fuel oil, the parcel back and transported the oil to
de-bunkering and reconditioning of
oil must be considered as ‘discarded’ the Netherlands with the intention of
off-spec fuel in the Netherlands. For
and accordingly treated as waste. This blending it and placing it back on the
further information on this the particular
Shell case, please see CJEU Case No.C-
241/12.
Bunker Sampling
Loss Prevention Circular No. 05-11
Introduction and background labeled. If the supplier takes other • Expert advice should be obtained
Gard is frequently involved with samples at the time of delivery, try to from a reliable fuel testing service as to
machinery damage/claims related to establish how and when they were how to proceed and how to solve the
fuel quality. The purpose of taken. Issue a protest if you are not particular problem. Contact the engine
this circular is to emphasise the invited to witness the sampling. manufacturer as well as the fuel
importance of the fuel ordering, supplier for advice. Further actions
delivery procedures, bunker • One sample should be retained to be taken will depend on which
delivery receipts and bunkering on board the ship, another should be parameter is off-specification.
samples including the correct retained by the supplier, and a further
procedures for taking and handling of sample may be used for analysis Recommendations
the samples. purposes and a fourth may be held by Bunkering procedures, including fuel-
a responsible independent party for testing procedures and charter party
Reducing the risk safe keeping and reference in case of a requirements to fuel quality, should
To reduce or minimise the risk of claims dispute. be reviewed to ensure that the correct
arising or breakdown of machinery, procedures are followed when dealing
there are some main • Bunker fuel samples should be sent with off-spec bunkers. The shipowners
issues to be aware of when handling to the laboratory for testing as soon as should also familiarise himself with
bunkers. possible after completion of bunkering. any recommendations issued by class
Use a fast, reliable testing service to societies or any other experts. The
• Fuel sampling and analysis is analyse the samples. Segregate any crew involved should also be properly
essential for verification of the quality of new fuel from that already held nboard. briefed on these guidelines and
the fuel received onboard. Procedures Avoid using the new fuel until the procedures to avoid costly and time
and instructions should be established analysis results have been considered consuming interruptions. Gard strongly
within the technical or operational and it has been established that the fuel recommends that bunker sampling and
departments to ensure correct sampling is suitable. Maintain accurate daily testing should be carried out in
and stating where the samples should records of the contents of and accordance with correct procedures.
be sent for analysis. It is important to consumption from each tank. The lack of testing can lead to extensive
ensure that the engineers on board damage to the vessels machinery
and technical staff ashore understand which is costly for all involved. can
the results of the analysis and the Off-Spec bunkers lead to extensive damage to the
limitations of their equipment. It If off-spec bunkers have been delivered vessels machinery which is costly for all
is important that the quantity of and are found to be unsuitable for use, involved.
the sample is large enough for the the bunkers should be off-loaded and
appropriate analysis to be undertaken. replaced by new on-spec bunkers. If
inferior bunkers have to be used or
• Always be selective when selecting have already been used the following
fuel supplier. Order fuel to the desired should be done:
ISO grade, and describe the required
grade in the charterparty as well as in • The vessel should immediately
the request to the supplier. notify the shipowner if it is experiencing
problems with off-spec fuel. If the
• Take samples at the time of shipowner purchased the fuel directly
delivery and obtain confirmation from from the supplier, he should notify the
the suppliers that the samples are bunker supplier and forward a copy of
representative of the entire delivery. the test result. The time limit for any
The samples taken must be properly protest vis-à-vis the supplier is very
short, at times only 2 weeks.
compliant fuel in EU
ports
EU Directive (1999/32/EC), covering sufficient time must be allowed for the 4b(2)). The Directive was amended
the sulphur content of marine fuels, crew to complete any fuel changeover again in 2012 (2012/33/EC), bringing EC
was amended in 2005 (2005/33/EC). operation as soon as possible after legislation in line with MARPOL Annex
As of 1 January 2010, ships berthed arrival at berth and as late as possible VI on the requirement for the use of
in a European Union (EU) port must before departure. Ships that, according low sulphur fuels, and the current EU
use marine fuel with a sulphur content to published timetables, are due to requirements can be summarised as
not exceeding 0.1% by mass (Article be at berth for less than two hours are follows:
4b(1)). The Directive also states that exempted from the requirement (Article
Type of ship: Max fuel sulphur content Max fuel sulphur content
outside SOx ECAs1 inside SOx ECAs
a) All ships excluding b) and c) below 3.5% from 18 June 2014 1.0% until 31 Dec 2014
0.5% from 1 Jan 2020 0.1% from 1 Jan 2015
b) Passenger ships on regular services2 1.5% until 1 Jan 2020 Same as above
to/from EC ports excluding c) below 0.5% from 1 Jan 2020
c) Ships at berth in EC ports 0.1% 0.1%
From time to time Members and clients 0.4% - and no fuel samples had been that the time may vary depending upon
contact Gard to ask for advice when a analysed upon delivery to establish if ship type and ship systems (ref. MCA’s
ship has been fined for burning non- the fuel’s actual sulphur content was MGN 400 (M+F)).
compliant fuel in an EU port. Gard has exceeding 0.1% or not. • Authorities are likely to expect a ship
recently been notified of three different to have compliant fuel onboard on
cases where ships have been fined for After more than three years in arrival at the berth and will not accept
alleged breaches of a state’s national operation, shipowners and operators additional delays in the changeover
legislation concerning sulphur content calling at EU ports should be fully operation caused by time spent
of marine fuels used in ports.3 conversant with the applicable procuring and taking delivery of
regulations. However, given that there compliant fuel after berthing.
Case A: A ship at an outer anchorage, may be differences in enforcement, Useful clarifications are also provided
waiting for a load berth, did not even within member states, recent in the EU document: “Questions and
perform a fuel changeover operation. cases indicate that Members and Answers on the use of fuel containing
However, the authorities still considered clients should continue their focus on not more than 0.1% sulphur in ships
the ship’s position to fall under the providing crew with proper instructions while at berth”.
regulatory definition of ‘at berth’4 on the purchase and use of low sulphur
because it was securely anchored inside fuels. The following should be noted: Footnotes
the port limits and providing crew 1 The current EU SOx ECAs are the
with accommodation and associated • The requirements for fuel changeover Baltic Sea and the North Sea, including
services (hotelling). contained in the EU Directive apply the English Channel.
from the moment the ship is securely 2 Regular services means: “a series
Case B: A ship arrived in port without moored or has anchored in port, of passenger ship crossings operated
having compliant fuel available on but since the Directive does not so as to serve traffic between the
board. Although low sulphur fuel contain a common definition of ‘port’, same two or more ports, or a series
had been ordered well in advance the delimitations of each port are of voyages from and to the same port
and was to be delivered immediately established locally. Ships intending without intermediate calls, either: (i)
upon arrival in the port, bad weather to burn high sulphur fuel at outer according to a published timetable, or
prevented the bunker barge operations anchorages within EU ports should (ii) with crossings so regular or frequent
and the ship was not able to complete therefore, for each individual port call, that they constitute a recognisable
its fuel changeover operation within seek the advice of their agent as to schedule”.
what was considered a “reasonable whether or not a specific anchorage 3 It is important to remember that each
time” by the authorities. falls within ‘the port’ for the purposes of EU member state has implemented
sulphur emission compliance. the EU Directive through their national
Case C: A ship completed its fuel • Guidance on the term ‘sufficient legislation.
changeover operation immediately after time’ for the crew to complete fuel 4 Ships at berth means: “ships which
berthing, but upon inspection by the changeover operations may vary within are securely moored or anchored in a
local authorities, it was discovered that member states, e.g. UK authorities Community port while they are loading,
the delivery note for the low-sulphur fuel will in general consider one hour to unloading or hotelling, including the
being consumed in port only indicated be sufficient time to complete fuel time spent when not engaged in cargo
that its’ sulphur content was less than changeover operations but recognising operations”.
requirements after
1 August 2012
North American Emissions Control 1.0% sulphur standard to be available the fuel changeover logbook. Other
Area (ECA) requirements for vessels that plan to operate in methods of verification of compliance
The North American ECA will enter into the North American ECA - but also may also be enforced and could include
force on 1 August 2012 and includes anticipates that, despite the best sampling and analysing fuel oil from
areas around the Hawaiian Islands but efforts2 of the shipowner or operator, the vessel’s fuel oil tanks and lines and
does not include the US Caribbean they may in some instances be unable air emissions from the vessel’s exhaust
Sea ECA, which will enter into force to ensure compliance. The EPA has plume.
on 1 January 2014. The geographical therefore released interim guidance for
limits of the North American ECA can shipowners and operators to:
If, in spite of best efforts, it is not
be found in Appendix VII of MARPOL possible to procure compliant fuel oil
Annex VI and in IMO Circular MEPC.1/ 1) provide background information on prior to entering the North American
Circ.723.1 the North American Emission ECA fuel ECA, the United States government
sulphur standards; and the Flag Administration must be
The sulphur content of fuel oil used 2) explain in what way compliance with notified. In order to minimise disruption
on board vessels operating within these requirements can be established to trade and avoid delays, a “Fuel
the North American ECA must not as well as how to demonstrate Oil Non-Availability Report” should
exceed 1.0% by weight on or after compliance if requested to do so by the be submitted as soon as possible
1 August 2012. As an alternative to United States government; and and no later than 96 hours prior to
using low sulphur fuel oil, shipowners 3) describe how to make a fuel oil non- entering the North American ECA. The
and operators may choose to equip availability claim should the vessel not interim guidance contains a list of the
their vessels with exhaust gas cleaning be able to obtain compliant fuel. information that should be included in
devices (scrubbers) in accordance with a Fuel Oil Non-Availability Report and
MARPOL Annex VI Regulation 4 and Click here to access the full text of also provides details of where to send
the corresponding emission value for a the EPA statement and the interim the report.
fuel oil sulphur content of 1% is a ratio guidance.
of 43.3 SO2(ppm)/CO2. Footnotes
Recommendations 1 See also Gard Alert “North American
Further information can also be found Members and clients are strongly ECA MARPOL amendments entered
in the US Environmental Protection advised to plan in advance so that into force 1 August“ issued on 18
Agency’s (EPA) fact sheet: Designation vessels entering or operating in the October 2011.
of North American Emission Control defined North American ECA have fuel 2 “Best efforts” to procure compliant
Area to Reduce Emissions from Ships. on board with a sulphur content of a fuel oil, include, but are not limited to,
For vessels visiting Californian ports maximum of 1.0% and that they start investigating alternative sources of fuel
special requirements apply within 24 using it as of 1 August 2012. oil prior to commencing the voyage
nautical miles (nm) of the California or en route prior to entering the North
Baseline (shoreline). Reference is American ECA. However, a deviation
Once the North American ECA
made to Gard Alert “Amendments from the intended voyage in order
requirements enter into force, it will
to California Clean Fuel Regulations“ to purchase compliant fuel oil is not
be essential that accurate records
issued on 1 December 2011 for details. required and the EPA does not expect
are maintained on board in order to
vessels to use distillate fuel oil, other
be able to demonstrate compliance
than as a blending agent, prior to 1
Interim guidance on the non- with the new requirements at any
January 2015 when the 0.1% sulphur
availability of compliant fuel oil time during routine Port State Control
standard begins
for the North American ECA inspections. Typical documents to be
The US Environmental Protection presented are bunker delivery notes,
Agency (EPA) indicate that they do representative fuel oil samples, written
expect fuel oil compliant with the fuel oil changeover procedures and
Canada implements
Gard Alert 10 May 2013
Problems Several fuel samples were taken during View of damaged cylinder liner with
Soon after leaving port, the engineers the vessel’s stay in port and sent ashore piston fitted.
started using the new bunkers. for testing, which revealed that the
Shortly thereafter, they experienced fuel was off- specification. The whole
abnormal sludge generation in the operation became very costly, time-
purifier, which resulted in excessive consuming and caused delays to all
water-sludge content in the settling involved.
and service tanks. A large amount of
water and sludge was drained from Lesson learned
these tanks. The amount of water and It is strongly recommended that:
sludge also resulted in problems with - the crew ensure there is sufficient
the performance of the main engine, quantity of tested reserve HFO on
in the form of fluctuations in exhaust board for consumption to cover the
temperatures, as well as a rise in the time delay involved in sending newly-
scavenge temperatures of the various bunkered representative samples for
units. The main engine fuel pumps testing and receiving the laboratory test
and fuel injection valves also sustained results.
some damage. - the crew take sufficient representative
samples of bunkers received and send
In order to prevent any power failure, them ashore for testing.
the fuel consumption of the auxiliary - laboratory test results for newly
engines was switched to diesel oil. received bunkers are known before
The engine crew switched the fuel consuming the bunkers.
consumption to another double bottom Piston complete.
tank, containing the newly bunkered
HFO, but with the same result.
Consequently, the engine crew had to
consume the recently bunkered HFO
for the propulsion machinery as nothing
else was available and as a result the
vessel had to reduce speed and slow
steam to the next port, which was
12 days away. It took several days to
The importance of
Gard News 195,
August/October 2009
The fuel in use is indicated as being the fuel bunkered in: ROTTERDAM on 26th April 2009.
The sample taken at the transfer pump indicates low levels of sludge and water and somewhat high levels of impurities.
Compared with the bunkering sample some settling of impurities appears to have taken place in bunker tank(s).
Water and sediments remain at low levels throughout the fuel system.
NB. Please ensure that fuel treatment is operated at optimum condition with centrifuges in parallel using the lowest
possible throughput while keeping the fuel temp. near to 98°C.
NB. As always when ‘Cat-fines’ and water are detected – Frequent bottom draining of all tanks and filters in use is
advisable.
Gard News has a look at some of the Annex VI sets limits on sulphur oxide certificate (IAPP Certificate) issued by
challenges of compliance and potential (SOx) and nitrogen oxide (NOx) the flag state (usually the class society
consequences of non-compliance with emissions from ship exhaust and as designated agent by flag state or
MARPOL Annex VI. prohibits deliberate emissions of ozone for ships that are not registered in a
depleting substances. The Annex MARPOL Annex VI signatory state).
What is MARPOL Annex VI? places a global cap on the sulphur
MARPOL Annex VI is a section of content of fuel oil at 4.5 per cent In order for flag and port states
the International Convention for the m/m (percentage by mass) and a 1.5 to monitor compliance with the
Prevention of Pollution from Ships, per cent m/m cap in “SOx Emission regulations, MARPOL Annex VI
1973, as modified by the Protocol of Control Areas” (SECAs). The Baltic Sea requires a bunker delivery note to be
1978 relating thereto (MARPOL 73/78), is currently defined as a SECA. In July obtained and retained on board stating
drafted by the International Maritime 2005 the IMO adopted amendments the sulphur content of the bunkers
Organization (IMO).1 The individual which identify the North Sea as a supplied, as well as samples of the oil.
sections of the convention have SECA, with an implementation date Fuel oil suppliers that are located in
entered into force at different times of November 2007. Annex VI also MARPOL Annex VI signatory states are
as they gained the required number prohibits the introduction into fuels of subject to the regulations but those
of signatory states. For example, inorganic acids or chemical wastes that in non-signatory countries are not
MARPOL Annex I, regulations for the could jeopardise the safety of the ship, subject to oversight by the port state
prevention of pollution by oil, have or harm ships’ personnel.2 authorities.
been in force for more than 20 years.
Annex VI, regulations for the prevention Ships of 400 GT or more engaged The challenges of compliance and
of air pollution from ships, entered in international voyages to or from potential consequences of non-
into force on 19th May 2005. Presently countries that have ratified the compliance
37 countries have ratified Annex VI convention or ships flying the flag of An article written by a DNV expert
covering 70 per cent of the global those countries are required to have an and published in Gard News issue No.
tonnage. International Air Pollution Prevention 1843 outlines some of the possible
1 See article “Annex VI of MARPOL 73/78 – Regulations for the Prevention of Air Pollution from Ships” in Gard News issue No. 176.
2 See article “MARPOL Annex VI – Solving the low sulphur issue” in Gard News issue No. 184.
3 See footnote 2.
4 See article “New BIMCO bunker fuel sulphur content clause” in Gard News issue No. 179.
Marpol Annex VI -
Gard News 184,
November 2006/January 2007
With the entry into force of the North be sufficient when the North Sea SECA acceptable as 1.5 per cent. Currently
Sea SECA there will be increased enters into force next year. this is left to the discretion of the
pressure on charterers and operators to individual port and flag states.
provide ships with low sulphur fuel oil. Needless to say, the pressure on
charterers and operators to provide Some suppliers and certain testing
Background ships with LSFO will increase. As companies introduce a default standard
MARPOL Annex VI, Regulations for a result, bunker management will margin of error (reproducibility). It is
the Prevention of Air Pollution from be more complex. It is also vital argued that deviations above 4.5 per
Ships, entered into force on 19th May that owners/charterers and bunker cent or 1.5 per cent would be caused by
2005. MARPOL Annex VI Regulation purchasers ensure that MARPOL Annex a default margin of error during testing.
14 restricts SOx emissions from ships VI clauses (Regulations 14 and18) The problem is that the concept of
by introducing a maximum sulphur are included in their charterparties margins of error has not been discussed
content in marine fuels of 4.5 per and bunker purchase confirmations. at IMO so one can not say whether
cent. In addition, MARPOL Annex VI INTERTANKO has developed contract authorities will accept any result above
identifies SOx emission control areas clauses that may be suitable in this 1.5 per cent in a subsequent flag or port
(SECAs). In these areas the maximum respect.1 state control. Hence, until further notice
sulphur content of marine fuels used is it is recommended that any indication
1.5 per cent. The Annex also set forth Bunker quality of sulphur levels above 4.5 per cent
requirements for documentation and In order to produce LSFO refineries or 1.5 per cent respectively should
representative sampling of fuel oil. have the following options: be accompanied by a notification to
– Use inherently low sulphur crude the flag administration, bunker port
EU Directive 2005/33/EC deals with stocks. administration and supplier according
issues similar to those in MARPOL – Invest in de-sulphurisation units. to the requirements of the IMO Port
Annex VI, although its dates for – Blend to LSFO specification, using a State Control Guidelines for MARPOL
implementation do not coincide with variety of cutter stocks, inland quality Annex VI.2
those of Annex VI. It also provides for LSFO or purchased inherently LSFO.
a maximum sulphur content in marine Following the ISO 4259 standard, for
gas oils of 0.2 per cent from 11th The blending option seems to be the a supplier to be 95 per cent confident
August 2006. Further, there will be a preferred future method. Regrettably, it that the fuel delivered will have a
reduction of sulphur content of marine appears that this option is also the one sulphur level of 1.50 per cent, the
fuels for vessels at berth in EU ports, which could impact the bunker quality suppliers’ target should not be higher
the entry into force date being 2010, in a negative way as explained below. than 1.42 per cent.
with the maximum sulphur content from
that date being 0.1 per cent. Other Increased stability and Considering the possible margin of
implementation dates are as follows: compatibility problems error, as well as the aspect of fuel oil
The more you blend, the greater the change-over, owners should consider
On 19th May 2006 the Baltic Sea SECA risk of making products unstable. This whether a limit of 1.5 per cent in orders
under IMO came into force. On 11th should be detected through fuel quality is sufficient or whether they should
August 2006 the Baltic Sea SECA testing (total sediment potential). specify a lower sulphur limit.
became enforceable by EU member However, if products are blended on
states. On 11th August 2007 the North the stability limit, subsequent mixing on Increased levels of catfines (Al/Si)
Sea SECA will become enforceable by board with an existing fuel with different With decreasing sulphur content there
EU member states. On 21st November properties (e.g., viscosity, density) or may be an increasing level of catfines.
2007 the North Sea SECA enters into gas oil/diesel oil could lead to unstable This may be due to an increased use
force under IMO. fuels and subsequent sludging. The risk of cycle oils as cutter stock in the fuel
increases during LSFO change-over, blend (cycle oils are a low sulphur,
Bunker management depending on system configuration. highly viscous refinery product which
There is uncertainty as to whether tends to contain an elevated amount of
suppliers will be able to meet the Sulphur content deviations catfines).
demand for low sulphur fuel oil (LSFO) In some cases certain ports blend to the
in main bunker ports world-wide. What sulphur limit of just below 4.5 per cent. Increased ignition and combustion
is clear today is that operators with a From time to time, the 4.5 per cent limit problems
contract for LSFO in general have their may be exceeded, although marginally. Increasing ignition and combustion
demands covered by the majors/larger problems may also occur when using
independents at main bunker ports at a Some samples tested also exceed the LSFO. This could be related to an
premium of USD 30-50/MT. Fortunately, 1.5 per cent limit, although in most increased use of high density and
it appears so far that the demand has cases only marginally. The IMO has not high aromatic cycle oils as cutter stock
been met with respect to the Baltic Sea yet provided guidance as to whether during blending.
SECA. There is, however, uncertainty an allowance can be made, like for
as to whether world-wide supply will instance whether 1.54 per cent can be
Fuel change-over
Fuel change-over contains both
commercial and statutory compliance
elements. On the commercial side, with
a premium of up to USD 30-70/MT, the
change-over from normal to LSFO and
vice-versa should be as fast as possible.
On the statutory compliance side,
owners need to be confident that the
crew has managed to change over from
normal to LSFO before crossing the
SECA boundary.
Bunker deliveries administration to require the ship Although not yet specifically required,
MARPOL Annex VI has not yet been to deviate due to a possible non- realistic and proven change-over
subject to significant enforcement compliance for which a supplier is procedures should be developed for
and as such the stringency applied responsible. The operator should each ship or group of ships with similar
is uncertain. It is recommended therefore request that the ship be fuel tank configuration and system
that ships adhere to the MARPOL permitted to proceed to the next port set-up.
Annex VI sampling procedures and of call.
documentation requirements as laid – The operator should agree with the The pre-requisite for change-over is
down in IMO Resolution MEPC 96(47).3 flag state administration regarding the exact sulphur level of existing fuel
At the recent IMO MEPC 54 meeting verification testing of the on board and LSFO, i.e., a bunker delivery note
a circular was adopted urging IMO MARPOL sample (the on board sulphur level set as “less than 4.5 per
member states to ensure that bunker MARPOL sample is the official cent” and “less than 1.5 per cent”
suppliers within their jurisdiction apply sample which is legally binding). If the should not be accepted as it creates
this resolution. supplier’s MARPOL sample has not uncertainty regarding change-over time
been taken in accordance with the IMO (in addition to uncertainty regarding
As a minimum, the crew must verify the sampling guidelines, then the operator the selected base number (TBN) of the
sulphur content in the bunker delivery should propose to test the ship’s cylinder lube oil used on board).
notes and that the official MARPOL MARPOL sample (if taken) as well. It is
sample is representative of the bunker the prerogative of the administration Some owners have converted their
supplied. In accordance with the IMO to select an appropriate laboratory ships by dedicating a bunker tank to
Port State Control Guidelines for for the purpose of verification testing. LSFO with separate bunker line, as well
MARPOL Annex VI, any non-compliance However, the administration should as introducing separate LSFO service
must be reported through a notification be encouraged to select a laboratory and settling tank with piping ensuring
to the flag state and the bunker port which is accredited with respect to split separator operation. This option
authorities. the ISO sulphur test method and means that the change-over can be
has documented experience with carried out quickly.
High sulphur fuels fuel testing. The laboratory should,
It is of vital importance that operators in addition to sulphur, also test for However, the majority of ships have
specify and crew verify that the sulphur fingerprint parameters such as density, conventional fuel oil systems with a
level in the bunker delivery note is viscosity, nickel and vanadium. The limited number of bunker tanks and
below the respective MARPOL limits. MARPOL sample should be forwarded only one service and settling tank. For
to the laboratory in question. The these ships the main contributors to
In the event a fuel testing company result is to be communicated to the change-over time are the following:
detects a sulphur level which exceeds administration, which is subsequently – Total consumption (main engine +
the MARPOL limits and is above that obliged to inform the bunker port state auxiliary engines + boilers).
specified in the bunker delivery note, administration. – Total volume of high sulphur fuel oil
the following course of action should – In case non-compliant fuel is remaining in piping systems, settling
be taken: detected, de-bunkering is not the only and service tanks prior to change-over.
– A notification should be sent to option available. As an emergency – Initial high sulphur level and LSFO
the flag state and the bunker port measure, provided existing fuel is on level.
authorities, highlighting the indicated board and it is verified compatible with – Transfer pumps capacity.
sulphur level deviating from the bunker the new fuel, the owner may request – Separators capacity versus total
delivery note level. acceptance for on board blending consumption.
– It would be unreasonable for the (depending on sulphur differences,
Challenges in operating
on low sulphur fuel
Background Sea Area is the first area designated • Supply and storage for low sulphur
International regulations to control as a SECA under the Protocol and fuels
harmful emissions from ships’ exhausts will permit a maximum 1.5% sulphur
entered into force on 19 May 2005. content in any fuel used onboard. In Lube oil related issues
MARPOL Annex VI contains provisions 2007, the second SECA, covering the • Matching cylinder oil BN fuel sulphur
allowing special “SOx Emission Control North Sea and English Channel, will level across operating conditions
Areas” (SECAs) to be established with be come into force, requiring similar • Possible additional storage tanks
more stringent controls on sulphur sulphur levels. • Cylinder lubrication monitoring
emissions. In these areas, the sulphur • Cylinder oil feed rate
content of fuel oil used onboard The effects of low sulphur fuel
ships must not exceed 1.5% m/m. There are several implications of Operations related issues
Alternatively, ships must fit an exhaust operating on low sulphur fuel or • Monitoring sulfur content in fuel
gas cleaning system or use other altering between high and low sulphur • Engine load
methods to limit SOx emissions. The fuels. The issues listed below are some • Cylinder Liner Temperature
regulation requires any such alternative of the most common challenges that • Water content in scavenge air
methods to be approved by the must be considered by the shipowners
relevant flag state. Sanctions for Marpol and operators to avoid problems Recommendations
violations are becoming increasingly related to operation and maintenance Shipowners and operators should
severe around the world, and there is of the ship engines. thoroughly consider all undesired
no reason to believe Annex VI will not effects of operating on low sulphur
be treated to the same scrutiny. Fuel related issues fuel. It is recommended that the engine
• Incompatibility of different fuels makers and the lube oil suppliers are
The regulation allowed for a 12-month • Combustion characteristics and contacted to obtain their detailed
period from the date of entry into force impact on engine deposits and wear instructions and guidelines. Specifically
before the limits within a SECA could • Varying fuel viscosity, and impact on worded charterparty clauses regarding
be enforced, and they will thus be fuel injection bunkers supplied by Charterers are
enforced from 19 May 2006. The Baltic • Low sulphur fuel having less anti-wear important to ensure that any problems
capability are avoided.
practical cases
Gard has recently assisted two charterers the ship’s plans, there was no direct oil was mailed to Det Norske Veritas
in the handling of claims arising from connection between them and no ballast Petroleum Services (DNVPS) for analysis.
delivery of off-spec bunkers. These pipes were routed through the fuel tanks. A fuel quality report was sent to the
cases show how important it is for both There was also no evidence of oil in the owners, which showed a Total Sediment
charterers and owners to have a good ballast water. Furthermore, the tanks were Potential (TSP) of 0.22, the standard TSP
bunker testing system in place. reported to be tight and in order during being 0.10. DNV advised that at this level
a recent overhaul. This possibility was of TSP, increased sludging was likely to
Damage to fuel injection pumps therefore ruled out. occur and fuel stability was at risk. They
The first case concerns a general advised the owners to purify the fuel,
cargo vessel, whose main engine had The surveyor’s conclusion was that the not to mix it with any other fuel and to
undergone a complete overhaul whilst damage was probably caused by water take and retain periodic samples before
the vessel was dry-docked. The bunker in the fuel. and after centrifuging and record the
tanks were cleaned and all sediment sampling details in the logbook.
removed. Following that, the vessel Based on the entries in the engine
took delivery of 170 MT of bunkers room log book, it was evident that there Charterers were put on notice that
at Rotterdam for a round trip to the had been a certain quantity of water in owners held them responsible for
Mediterranean and return to Norway. The the fuel oil tanks No. 6 starboard and the consequences of supplying off-
bunkers were put into fuel oil tanks No.6 port. How the water entered the tanks, spec bunkers, including the cost of
starboard and port and, in accordance however, had not been established. de-bunkering if required and any
with the Baltime charterparty, were damage to the vessel’s engine. The
provided and paid for by the charterers. The owners put the charterers on notice head charterparty included detailed
that they held them responsible for all and comprehensive clauses concerning
When the vessel started to take fuel from costs incurred and time lost during the responsibility for delivery, quality, testing
tanks No. 6 port and starboard during period the vessel was out of service and analysis of bunkers, but these clauses
the voyage, she experienced severe due to supply of inferior bunkers. The were not included in the sub-charter.
problems with sediment. The problems charterers in turn held the bunker
continued for the rest of the trip and on supplier responsible. The vessel sailed for Richards Bay to load
arrival in Kristiansund, Norway, assistance a cargo for Praia Mole, Brazil. During
from the engine manufacturer was The bunker supplier rejected liability, the voyage, the master advised that
needed. A without prejudice joint survey relying on an analysis of a sample of the the vessel was experiencing a critical
was arranged, which was attended on fuel oil taken from the vessel after the situation on board in trying to purify the
behalf of the owners, charterers and bunker delivery. This analysis confirmed off-spec bunkers. For safety reasons,
bunker suppliers. Fuel oil samples were the bunkers delivered to the vessel were he decided to deviate to Port Louis,
taken from the relevant tanks, a survey within specification. The test sample Mauritius, which was the nearest port
of the vessel’s engine and all relevant taken from the bunker barge had with enough bunkers to enable the ship
machinery was performed and an been lost and samples from the fuel in to reach Richards Bay safely. The owners
investigation into the cause, nature and tanks No.6 port and starboard which requested charterers to make provisional
extent of the damage was carried out. purportedly showed that they were arrangements for
contaminated with water, could no longer de-bunkering. Charterers put the sub-
The engine manufacturer’s representative be traced. charterers on notice, requested them to
concluded that all 18 fuel injector pumps make the necessary arrangements to take
had to be replaced. The damaged Fortunately for charterers, in this case the inferior bunkers ashore and re-supply
pumps and valves were sent to the the owners did not have a system in at Port Louis. The sub-charterers did
engine manufacturer’s plant in Denmark place to take bunker samples for analysis not admit any liability for the problems
for overhaul/repairs, and a joint survey when bunkering, so no samples of experienced by the vessel, but advised
was also carried out there. Sixteen of the bunkered fuel were available. As a they would appoint a surveyor to inspect
the fuel oil pumps were dismantled result, the owners had no evidence and the vessel and bunkers.
for further examination. Fifteen of therefore no case against the charterers
the pistons were found to be brown- and had to bear the losses. Accordingly, the charterers had little
coloured, one was found to contain water choice but to arrange delivery of fresh
drops, some were found with corrosion High Total Sediment Potential bunkers at Port Louis, so it was decided
and several pump hoses contained water. The second case concerns a 1995-built to de-bunker the off-spec bunkers at
Due to the corrosion and browning, the bulk carrier which was time-chartered Richards Bay. Charterers invited the
manufacturer advised replacement of all under a NYPE 1993 form. The vessel was shipowners and sub-charterers to take
the sub-chartered and upon re-delivery sub- part in a survey of the vessel’s engines
pistons and cylinders, which were charterers supplied the vessel with 900 and purifiers at Richards Bay and
replaced with reconditioned fuel oil MT of IFO, which was taken into DB tanks a without prejudice joint survey of the
pumps. Nos. 1 and 2. sealed samples held on board by the
master for charterers’ use was arranged,
It was considered whether there could The shipowners had an agreement with and the fuel in the vessel’s tanks was
have been leakage between the ballast Det Norske Veritas (DNV) for testing tested.
and fuel oil systems. According to bunker samples, so a sample of the fuel
Introduction the buyer and/or the crew. Depending Liner operators, who see their fuel costs
Is it possible to make money on on the development of the bunker clearly, have implemented sophisticated
bunkers? Yes, and not just by selling market, one can safely say that the purchase and management strategies
them. Owners generally can not control bunker department is both loved and for bunkers. Tanker owners all too often
their earnings, and are at the mercy of hated. But all too often companies leave it to the market. It is suggested
the market when it comes to freight and have no actual bunker department, or that educated buyers who follow proper
time charter rates. But they can control there is a difference of opinion within purchase routines with proper follow
costs, and every cent saved on a direct the organisation as to what the bunker up, who know the market, and know
cost like fuel is welcome. So you can department should actually be doing. whom they are buying from, will have a
make money on bunkers, by cutting significant positive effect on the bottom
costs. The chartering department usually line.
looks upon bunkering a vessel as
Bunker prices are just as much market- synonymous with a car pulling up If two shipowners are buying fuel in
driven as freight rates, but the market to the local petrol station, and they the same market for a similar route,
price of bunkers is far from the only usually need the fuel in a rush. The why can one get a better result than
cost involved. Too many owners fail to management looks at the department the other? Because one employs staff
realise that and give too little attention as the biggest spender in the that pay attention to where the money
to bunker purchasing and management. organisation and is always asking: goes, and the other simply looks at the
This article shows how attention to “couldn’t you get the fuel cheaper market price. Anyone with a trading
bunkers can generate real cost savings, somewhere else?” The technical and instinct can play a market. Bunker
and a real boost to bottom line results. operational departments treat it as management requires more knowledge
a necessary evil and are constantly than that.
Bunkers have always been an important complaining about the quality of the
part of ship operations and, as such, fuel, and that it is always delivered Your money can go up in smoke without
bunkering is a vital part of an owner’s outside office hours. But either way, pushing the ship one metre forward.
day to day operation. Fuel costs have bunkers must be bought and therefore You may lose on the volume/weight
become a major part of the running it is of vital importance for an owner conversion, or more simply, you may
costs of a vessel – in some instances that the persons involved with fuel pay for more than you get because your
as high as 60 per cent. This weighs purchasing have the necessary crew does not supervise and ensure the
heavily on the profit margin and may knowledge on how, where, and when quantity is lifted correctly. You may lose
lead to financial loss through lack of to procure the fuel in an efficient and money because the energy content of
knowledge, skill or care on the part of economical way. your cheap fuel is much less than the
1 See also articles “Some technical aspects of marine fuels testing” and “Effects of off-spec bunkers” elsewhere in this issue of
Gard News.
lubricating oil
By Lindsay Gordon, Gordon, Giles & Company Ltd, London
LUBRICATING OIL
Many of the points discussed above
regarding purifiers, filters, test cocks on
Taking a lube oil sample at the purifier.
storage tanks apply to lubricating oil. In
addition, there are several key points to
consider.
(1) Ensure that the correct grade of oil
is being used.
Bunker Quality
Loss Prevention Circular
No. 03-01, May 2001
Introduction component used for blending Circular 04-01, Charterers Liabilities and
The securing of bunkers of an Intermediate Fuel Oil (IFO) for Bunkers).
acceptable quality depends on a variety ships. The result is fuels with higher
of factors such as availability, demand, density, carbon residue, sulphur If the vessel is in the unfortunate
area, choice of suppliers etc. The etc. Practically every parameter has situation of having received a high
problems have, to a certain degree, increased significantly throughout Catfines fuel, and has to use the fuel,
fluctuated with the bunker prices. The the refinery processing. Ships owners should be prepared for a
market has seen fuels contaminated fitted with older centrifuges are succession of replacements of plungers,
with waste chemicals detrimental to the unable to effectively treat such nozzles and other moveable engine
health of the crew as well as damaging fuels, particularly the “high density” parts. A normal full set of spares may
to the ships engines. For many years, it products, i.e. fuel densities of 990 not be sufficient to see the problem
has been normal in certain areas of the Kg/m3 and above. Centrifuge through. The fuel testing service
world to dispose of used automotive manufacturers offered upgrade kits provider should also be contacted,
lubricants in bunkers, thus possibly for the “old” separators, but few together with your centrifuge
adding to engine operating problems. operators invested in these kits. manufacturer and fuel supplier
for advice and decision-making.
High-density fuels which far exceed 3 Poor ignition quality is another Separators must be in prime conditions.
the capabilities of the onboard fuel problem that has arisen recently. Considerations should be given to
treatment plants are being delivered The standard laboratory tests do replacing separators manufactured
to vessels.. Water in the fuels is not not test the ignition quality, and it prior to 1984/1985.
uncommon, resulting in emulsified is not a part of the ISO 8217 Fuel
fuels and fuels that cannot be treated in Standards. The problem is normally If the vessel has been on extended
shipboard fuel treatment plants. Some associated with low viscosity/high lay-up, Catfines and other impurities
of the problems mentioned result in density fuels. If a vessel receives may settle in the bunker tanks if a
damages that are insured against, but this type of fuel, the ship should sufficient amount of bunkers remain
in most cases the associated costs fall keep temperatures as high as onboard during the lay-up period.
below the deductible. Occasionally, possible, thus avoiding low load When subsequently re-commissioned,
blending contaminated fuel with good operation. Gard has seen a number these Catfines and impurities are likely
quality fuel may solve the problem. of claims in the last few years where to be stirred up in heavy seas and cause
In other instances, the damages in the the vessel has had to be assisted damage to the engine(s). Therefore,
form of wear and tear of moving parts to an emergency port. The use of consideration should be given to
are so great that the vessel has to divert inferior ignition quality fuels may the cleaning of bunker tanks prior to
to an emergency port for major repairs. well result in major repairs to the bringing a vessel out of an extended
vessel’s engine(s). lay-up to prevent the occurrence of this
Primary problems type of problem.
We see mainly three problems: Recommendations
1 Catfines, aluminium and silicon Owners should be aware that the The settling of Catfines is a continuous
resulting from the refinery cracking increased demand from shore side process taking place onboard every
processes, are very abrasive to ship’s industries for premium products has seagoing vessel. As a rule, fuel tanks
machinery, unless properly removed. resulted in a deterioration of IFO used should be cleaned regularly. Settling
The end result can be machinery in marine engines. Compounding and daily service tanks should be
damage unless the Catfines are the problem is the demand from cleaned at least once a year. This messy,
removed to an acceptable level shipowners for high performance but important task would save ship
(contact your engine manufacturer) lighter engines. operators a lot of problems.
through effective fuel treatment
onboard, i.e. optimum use of IFO used as bunkers should, as a For further information on bunker
the centrifuges. The mode of minimum, meet the requirements of the quality, testing and other relevant
centrifuge operation must be specifications set out in ISO 8217, latest information, can be found on websites
discussed with the manufacturer as issue. Bunker testing agencies such as such as www.bunkersworld.com, www.
the type and year of manufacture of DnV Petroleum Services (DnVPS) and dnvps.com, and www.lrfobas.com and
the separators is of significance. Lloyd’s Register’s FOBAS are set up to www.fueltech.no.
monitor that this is the case.
2 As the global demand for premium Gard would like to thank and
products such as gasoline, jet If the vessel has performance difficulties acknowledge Mr. Kjell Haugland’s
fuel, heating oils and gas oils and poor ignition quality is suspected assistance in preparing this circular.
has increased sharply, the use of despite a satisfactory CCAI value, a
refinery conversion processing have further test for the ignition quality
markedly influenced the quality should be performed. Fueltech,
of the end product, the residual FOBAS and DnVPS can perform these
component which is the major services (see Gard Loss Prevention
Introduction suitable samplers. Prior to placing the to accept joint sampling by buyer and
Ships use the cheapest liquid fuels order, it is his responsibility to agree seller, despite the obvious fact that this
available on the market, hence the fuel on a joint sampling procedure with the is only fair and square. The practice
quality varies greatly. The safe operation supplier, including where and when of multiple sampling by both parties
of ships depends on knowledge of the the sampling shall be carried out. If the makes dispute resolution difficult, and is
quality of the fuel used. vessel does not have a fuel sampler always costly and time-consuming to all
acceptable to the supplier, the buyer is involved. The sophisticated buyer, who
Fuel Testing not likely to be in a position to stipulate sees the benefit of fuel quality control,
It is estimated that only one third of all sampling at the point of custody should always insist on joint sampling at
marine fuels delivered to ships trading transfer, i.e., at the ship’s fuel manifold. the point of custody transfer. If declined
internationally is tested. Even so, the by the supplier, then he should make a
experience from the testing services Proper sampling during a bunker reference to this in the ship’s logbook.
indicates that things are far from transfer operation is extremely
perfect. The comparison of a car filling important, because continuous drip Testing services provide their customers
up with fuel at a petrol station with a sampling at the point of custody with sound and practical advice relating
ship lifting bunkers via a barge does not transfer is the only secure way to to bunkering operations. Following
apply. And for good reasons, which will ascertain the quality of the product them is good practice.
be explained later. received by the buyer. Sampling either
before or after the event will not, for It is customary in some ports to request
Marine fuels are practically all custom obvious reasons, bear the same weight. the pre-signing of documents relating
blended to a buyer or ISO specification. It is good news that Singapore, being to the bunkers being transferred,
The supplier may or may not have by far the largest bunkering port in including the signing of labels for
detailed information on the quality the world, has decided to introduce the bunkering samples. This is not
of the components he is using in the legislation requiring all bunkerings acceptable, as the buyer has no control
blend. Satisfactory quality components taking place by barge to be sampled over which sample bottles the labels
in themselves may well result in an continuously during the bunkering will be placed on.
unsatisfactory blend, unless you know operation at the receiving vessel’s
exactly what you are doing, and we all manifold. The bunker barges will all be Sample transport
know that blends are made directly to required to fit a defined quality sampler The operator pays good money to
the vessel bunkering, either through at the receiving vessel’s end of the the testing service for speedy analysis
line blending from shore installations, bunker delivery hose. The new law will results. The chief engineer must
blending on board barge, or in-line become effective on 1st January 2002. therefore arrange for a courier company
blending from the bunker barge. The to pick up the sample immediately
only way to ascertain the quality of the The Marine Environment Pollution after collection. It is advisable to inform
product actually received on board is Committee (MEPC) of the IMO the courier company of the sample’s
through representative sampling and (International Maritime Organization) whereabouts by e-mail or fax, with copy
testing by specialised laboratories.1 has also recently drafted guidelines to the agent and owner/operator.
indicating where and how samples
It is true that any analysis result is only should be taken in connection This will put pressure on the ship’s
as good as the sample analysed. If with the bunkering of ships. The agent and courier, and will enable the
the sample is not representative of “Guidelines for the sampling of fuel operator to follow up in order to avoid
the average quality of the product oil for determination of compliance delays.
transferred from supplier to buyer, with ANNEX VI of Marpol 73/78” state:
then the analysis result is of little or “For the purpose of these Guidelines Use of new fuel
no value. Therefore, there should a sample of the fuel delivered to ship The ship should avoid using the new
be rules and routines on board should be obtained at the receiving fuel until its quality has been confirmed
to ensure that every bunkering is ship’s bunker manifold and should be to be satisfactory by the laboratory
properly sampled, including fuels for drawn continuously throughout the report. It has been customary to bunker
the auxiliary engines. Each and every bunker delivery period”. It is hoped that just prior to leaving port. However,
vessel should have fixed routines these guidelines will be adopted by all analysis results on the new bunkers may
describing in detail the bunkering the major shipping nations, because not be available until a few days after
operation, including the stages they make good sense. leaving port, so some operators have
before, during and after bunkering, started to bunker when entering port,
and listing the responsibilities of each Even if the bunker industry has whenever possible (draft, cargo, timing,
individual involved. It is the owner/ come a long way in its endeavour to etc., permitting). This allows the analysis
operator’s responsibility to set up such safeguard the interests of the various results of the new fuel to be available
an instruction manual. It is also his parties involved, there are still strong prior to leaving port, which of course is
responsibility to provide the ships with objections from some supplier quarters the ideal situation. Should the fuel be
1 See article “Effects of off-spec bunkers” elsewhere in this issue of Gard News.
2 See article “Effects of off-spec bunkers” elsewhere in this issue of Gard News.
Effects of off-spec
Loss Prevention Circular
No. 08-01, November 2001
bunkers
Introduction equipment. Power was temporarily However, the bunker brokers advised
Taking onboard off-spec bunkers restored at 2217 hrs. A second the company that the samples had
can cause significant disruption to a blackout occurred at 2218 hrs resulting not been taken at the bunker barge as
vessel’s ability to trade. In addition, it in the vessel not being under control. required by the Singapore Standard
creates problems in recovering from Although power was finally restored at CP60:1996. Further samples were
the insurers costs incurred due to a 2220 hrs, the vessel was only able to drawn at the barge’s manifold and
lack of and/or limitation in cover. This continue at half speed. sealed with a barge seal.
circular is intended to provide an
example of the problem as experienced The Chief Engineer observed that Damage to machinery
by shipowners. The case described the bunker which had been supplied The damage to the main engine as
below relates to a passenger ship, but in Singapore that day, had a high a result of using the off-spec bunker
applies equally to all types of vessels. degree of carbon residue, clogging was abrasive wear marks on all fuel
Loss Prevention Circular No. 08-01 the complete fuel system in the main nozzles, abrasive wear on all fuel pump
is the next instalment in a series of and auxiliary engines. The Master barrel/plunger assemblies as well as
circulars produced by Gard dealing with informed the owners of the problem heavy fouling of all turbochargers. The
damages associated with bunkers and and the decision was made to return to turbocharger impellers were noted to
bunkering1 and outlines problems which Singapore due to safety considerations. be heavily fouled, the labyrinth seals on
may arise when passenger ships have to the gas sides were choked with carbon
deal with off-spec bunkers. At 1100 hrs the following day, fuel deposits, and the bearing bushes were
samples were taken in the settling and worn. In addition, the boiler burner
Passenger ship operations are very service tanks where the bunkers had unit was also heavily fouled. Upon
sensitive to operational disruptions. been loaded and the vessel began review of the engine logbooks, there
Costs of disruption can occur in the discharging the off-spec bunkers at was no evidence of any problems with
form of hull and machinery damages, 1200 hrs. A representative from the the engines prior to taking on the off-
damages and compensation to Singapore Maritime Port Authority spec bunker. The running hours of the
passengers and crew as well as damage informed the vessel at 1230 hours that main and auxiliary engines were noted
to reputation that may influence future they were being cautioned due to the to be well within acceptable limits for
bookings and earnings. Compensation emission of black smoke – apparently overhauls.
to customers beyond the initial costs the result of the burning of the off-spec
due to commercial considerations can bunkers. An engine repair contractor In this case, there was no indication
easily fall outside the scope of cover of boarded the vessel at 1600 hrs and that the vessel had received the results
hull and machinery, loss of hire and P&I upon surveying the situation, indicated from the first fuel test prior to sailing.
cover. that repairs would take at least two In addition, the vessel had apparently
days provided no extensive damage a very limited amount of bunkers
Course of events was found. After consultations with the onboard prior to loading the first off-
Upon arrival in Singapore, the vessel owners, the Master decided to abort spec bunkers. Therefore, the vessel had
was firmly secured to the pier at 0550 the cruise. to commence using the new bunkers
hrs. At 0800 hrs, a bunker barge prior to receiving the test results. In this
came alongside to deliver bunkers to At 0630 hrs the following day, the circumstance, the vessel was not able
the vessel. The barge commenced debunkering operation was completed. to create a ‘buffer’ by using the existing
bunkering at 0810 hrs and completed Another bunker barge began loading bunkers while awaiting the test results.
the operation at 1255 hrs. The bunker a fresh supply of IFO 180 cst at 0810 Had this been the case, the company
delivery statement noted that 90 metric hrs and the operation was concluded may have been able to discharge
tonnes of supposedly IFO 180 cst was at 0945 hrs. All passengers were the off-spec bunkers and taken on
supplied. Fuel samples were taken for discharged from the vessel at 0945 replacement bunkers.
testing by a credible bunker quality hrs. A second agency was used for the
testing company. However, the results sampling of the second bunkers taken What types of damages are actually
from this bunker test would not be and a different bunker testing company covered? In this type of case,
available for another 2 – 3 days. was used to analyse the second shipowners can find themselves in a
bunkers. The results of the tests of the situation where insurance cover can
The vessel departed Singapore for first and second bunkers indicated high only pay a portion of the costs incurred.
Thailand at approximately 1745 hrs on ash, water and total sediment potential For example, in this instance the cost of
that same day. At 2215 hrs that evening, (TSP) content. In addition, high sodium repairs to the damage to the machinery
the vessel experienced a total blackout, to water content was also reported, was below the deductible. For loss
including the loss of all navigational indicating the presence of seawater in of hire, the vessel was off hire but
the bunkers. within the off hire deductible. The P&I
1. Gard Loss Prevention circulars related to bunkers are: Loss Prevention circular 01-00 (Main Engine Damage Due to Ignition
Delay), Loss Prevention circular 03-01 (Bunker Quality), and Loss Prevention circular 04-01 (Charterer’s Liabilities and Bunkers).
These circulars can be found on the Gard website at www.gard.no.
2. Gard Handbook on P&I Insurance by Simon Poland and Tony Rooth. Published by Assuranceforeningen Gard. Arendal, Norway
1996. The preface of this handbook can also be found on the Gard website at www.gard.no.
3. Det Norske Veritas Annual Report 2000 can be accessed via their website at www.dnv.com.
Ship Type: Panamax bulk carrier Extent of the Damage of the quality of the fuel received on
(built 1980) The result was a complete breakdown board. There is however little value
Course of Events of all pistons, cylinder liners and in companies spending money on
In a Gulf of Mexico port, the vessel cylinder heads with related parts. Due sampling and testing if shipboard
received heavy fuel oil IFO 180 to lack of availability of spare parts engineers are not properly trained to
according to ISO category RME 25 onboard ship, only preliminary repairs understand the fuel quality analysis
with a density of 989,6 kg/m3 and a were made. Thus, the voyage to the and provided with procedures and
viscosity of 172 Cst. The bunker receipt discharge port was made at reduced instructions on how to adjust the fuel
information and the following DNVPS speed. Meanwhile, the company had equipment and engines accordingly.
analysis coincide with respect to these to make arrangements at the discharge
parameters. port to acquire spare parts and make Procedures and instructions should
preparation for final repairs. The vessel be established in the technical or
was taken off-hire upon arrival at the operational departments on how to:
Based on the density and viscosity
discharge port. - establish requirements for fuel quality
information, the ignition qualities of
depending on the fuel treatment
this fuel (CCAI) were calculated to 860
As a result the total cost to repair is equipment and engines on board
which is acceptable for slow speed
approximately $530,000 USD and the - follow-up the vessels’ bunkering
engines. The vessel is equipped with a
total time off-hire is approximately 45 schedules, ensure correct sampling and
16-cylinder medium speed main engine
days. where to send samples for analysis
of European design, and this fuel is on
- ensure the engineers on board and
the limit of where operational problems
Probable Cause technical staff ashore will understand
could be expected for medium speed
The ship manager and/or commercial the analysis and the limitations for their
engines. As a result, the chief engineer
on board and the ship management operator of the vessel made the error in equipment, and
office were informed by DNVPS that believing that a lower viscosity fuel (180 - in the event of having taken on
Cst) was of better quality than a high fuel of inadequate quality, establish
precautions should be taken to ensure
satisfactory combustion. viscosity fuel (380 Cst). This is commonly communication with the engine makers
seen when a fuel supplier lowers the and fuel analysing company in order
The chief engineer on board and the viscosity by adding lighter components to provide proper instructions to the
that may seriously alter the ignition vessel.
ship manager ashore did not pay
any attention to the fuel analysis. characteristics.
They did not considered the specific
recommendations issued by the engine The ship manager had arranged for
maker or DNVPS’s precautions for sampling and analysis of fuel. However,
operating the main engine with fuel the ship manager had not ensured that
with inferior ignition characteristics. their chief engineers were provided
To compound the problem, the vessel with proper procedures and instructions
was sent to areas for trading including to take the necessary precautions
days with river passage with variable against damages that could be incurred
loads on the main engine. This made by inferior quality fuel.
it difficult to maintain maximum
combustion temperature and thus The result was that the vessel left the
made it virtually impossible to follow bunkering port with no preventive
the operational recommendations. actions and precautions on how to deal
with a situation with a fuel on board
The delayed combustion resulted with inferior combustion characteristics.
in increased combustion pressure,
combustion close to the cylinder walls Lessons to be Learned
and the consequential failure of the The importance of fuel sampling and
lubrication of the pistons and liners. analysis is essential for verification
Thruster
7%
Collision Other 2% Propeller/
Machinery Rudder 5%
14%
42%
Other 15%
Grounding Auxiliary
15% engine
Main 25%
Heavy engine
w eather 48%
Contact Fire 3% 4%
damage
20%
Engine – Problems:
Cylinder wear
Piston ring groove deposits
Cylinder liner polishing
Piston crown deposits
Gas leakage
Crankcase deposits
Fuel oil leakage to the crankcase
Bunker spills
Gard News 165,
February/April 2002
Every vessel needs bunkers. Some are to come out of the hole, and five litres monitored an operation from the
run by fuel oil, others by gas oil, and reached the sea. The costs paid by shoreside, or that shoreside monitoring
some need both for their machinery. Gard reached USD 3,000, in addition was sloppy, and that the speed was
In addition, vessels need lubricating to what the member had to pay under excessive compared to what had
oils and hydraulic oils. The oils are the agreed deductible. How could been agreed. How can that be proved
normally taken on from barges or shore this have been avoided? First of all, afterwards? Is there evidence that the
connections through hoses. Hydraulic were the scuppers plugged? No. So, vessel had told shore personnel to slow
oils or lubricating oils may be taken on whose fault is this? Is there a routine on down? It has to be remembered that
in drums. the vessel for plugging the scuppers it is the spiller who is the responsible
when bunkering? Somebody must be person and who shall have to pay in the
Seamen know these things. They know responsible for that job and it should first place. Under OPA 90 the spiller can
how to plan the bunkering operation, be set out in the safety programme. It only avoid responsibility if he can show,
how to follow the routines set out in the is essential that the responsibility for by a preponderance of evidence, that
vessel’s safety programme. They know doing a job be allocated to a specific somebody else, not being at all related
how to calculate their need for bunkers individual – not in order to be able to to him, was the sole cause of the oil
and how to order. They know how to blame somebody when something discharge.
hook up the bunker barge and how to goes wrong, but in order to make sure
connect the hoses to their manifolds. that the job gets done. Could the None of the cases mentioned above
And they know how to monitor the “blurp” have been avoided? A “blurp” involved criminal investigation of the
bunkering operations. is most often caused by an air pocket responsible crewmember or company.
being trapped between the beams However, nowadays it is quite likely
And yet, bunkering spills do happen. underneath the tanktop depending that the Coast Guard will look closely
Over the last 20 months, 350 pollution on the trim of the vessel. It is essential into the vessel’s routines and safety
incidents have been registered in the that the person in charge is aware of programmes whenever a spill occurs.
Gard system. Many of these cases what trim the vessel has, and what If they find that something is not in
(165) have been reported merely can happen in certain circumstances. accordance with rules and regulations,
for precautionary reasons and are Hence, it is better to stop the operation e.g., MARPOL 73/78, the FBI may be
not expected to cost anything. Of one or two centimetres short and informed about the case and start
the remaining cases, the majority is avoid the very expensive oil being a criminal investigation. This means
expected to cost Gard between USD lost overboard. [5litres = USD 3,000; that criminal lawyers may have to
100 and USD 100,000 each. There are i.e., 1 ton = about USD 750,000]. be appointed to defend the master,
also a few cases expected to cost more Another way of trying to avoid the oil chief engineer and others, and, if
than USD 100,000 each, of which three slipping overboard is of course to have non-compliance is grave enough, the
are expected to cost more than USD absorbent material ready near to every shipowning or operating company.
1 million. The most expensive will cost opening from which oil could possibly At this stage Gard and its local
somewhere around USD 25 million. escape – not only by the manifold. correspondents have to step aside
because of the attorney/client privilege
It is true that not all of these incidents Another vessel was bunkering in aspect.
involve bunker spills. However, the Texas. In order to be able to follow the
majority of the 165 no-cost cases operation a manhole had been taken Japan
involve minor spills during bunkering off. Despite such a precaution, the A vessel was transferring oil internally
operations – spills so miniscule that tank was filled faster than expected into the settling tank. Unfortunately the
they would not, some years ago, have and 1,000 litres were reported to have tank overflowed and some oil found its
been reported to Gard at all. It is also reached the surrounding waters. The way into the sea through the airpipe.
true that the majority of the remaining product was heavy fuel oil, and the Whenever there is a pollution incident
cases relates to bunker spills one way vessel’s response plan under OPA 90 in Japan the Maritime Police will start
or the other and this article will analyse was activated. Everything went well in investigating to find the culprit of the
some of these events to provide a the end, but the operation, including mishap. Such investigation may take
picture of what happens, and how a QI (Qualified Individual), OSM (Oil Spill some hours, but it may also take days,
mishap is treated in different countries Manager), oil spill response company, and in the meantime the vessel is not
around the globe. US Coast Guard, etc., cost USD 180,000. allowed to leave the port. After having
How could this have been avoided? interrogated the chief engineer and
United States Obviously, by closer monitoring of the other engineers it was found that the
The vessel was bunkering in Oregon. It operation. The person responsible second engineer was the wrongdoer.
appeared that the engineer in charge for the operation should not be The investigation took two days,
of the operation had unscrewed an distracted by having to do other things which meant that the operators of the
ullage pipe cover to be able to check simultaneously. liner vessel involved, being on a tight
the quantity in the particular tank. schedule, had all sorts of problems with
Unfortunately, as often happens, a What about the bunkering speed? their customers. Criminal proceedings
“blurp” forced a small quantity of oil Quite often it is said that nobody started and bail of USD 10,000 had to
Charterer’s Liabilities
Loss Prevention Circular
No. 04-01, May 2001
and Bunkers
Introduction agency stated that the amount of water It was determined that both the IFO
Neither shipowner nor charterer likes in the IFO was likely to be difficult to and MDO bunkers contained non-
receiving poor quality bunkers. This remove. hydrocarbon additives typical for
can lead to a number of problems for motor vehicles lubricants. These
shipowners and charterers. These A dispute arose between the owners additives may negatively influence
problems include: and the providers of the bunkers. It is ship’s machinery (see the Gard Loss
– damages to main or auxiliary common practice that the fuel supplier Prevention Circular 03-01, Bunker
engines; attends the bunker sampling procedure. Quality). Their use may lead to
– finding terminals willing to receive In this case, the request to witness increased wear rates of machinery by
de-bunkered fuel; the sampling had been signed by the inhibiting the separators that remove
– co-ordinating and bearing the costs supplier prior to commencement of the abrasive particles and water from the
associated with diverting the vessel bunkering. The validity of the samples bunker fuel and contribute to fouling
for off spec bunker discharge; drawn by the ship was questioned in the exhaust spaces, turbocharger
– coordinating and bearing the costs since neither the fuel supplier nor blades and nozzle rings. In addition, it
of providing new bunkers to the other unbiased personnel observed was explicitly stated in the charterparty
vessel; the sampling procedure and handling. agreement that no spent lubricants
– reducing speed to accommodate The supplier contested that the were to be found in bunker fuel used
the use of off spec bunkers; and or contamination of the bunkers occurred onboard the ship.
– Co-ordinating and bearing the cost after being loaded onboard the vessel.
of lost time, i.e. off-hire. The vessel informed the owner and
The vessel secured a continuous drip charterer of the results of the analysis.
These problems can lead to disputes sample using the flange sampler The owner then requested that
between ship owners and charterers. fitted at the ships bunker manifold. immediate action be taken to discharge
Therefore, it is important for both The bunker supplier took the bunker the off spec bunkers. On the same
shipowners and charterers to protect samples at the point where the bunker day that the sample evaluation was
themselves in the event of disputes. hose was connected to the shore received, it was arranged for additional
The objective of this circular to present bunker installation. The supplier samples to be taken by a survey
case study examples of these types refused to make arrangements to agency appointed by the charterer.
of incidents, how disputes can arise, arrange for the discharge of the inferior The surveyor took various samples of
and provide some guidance as to how bunkers contending that it was the the IFO and MDO. Analyses of the
shipowners and charterers can protect vessel’s fault for the contaminated three samples showed that for one
their interests. bunker. They contended that other sample, blending with another fuel
vessels had bunkered soon before had occurred and hence less spent
Case 1: Fresh water contamination and after ship A and had no water lubricants in the mixture. The MDO was
Upon arrival in port, ship A had a contamination problems. The vessel needed to run the auxiliary engines and
remaining 24.8 MTs of bunker fuel in was required to retain and use the the donkey boiler. Results from the two
the settling tank and requested that bunkers and eventually discharge the other samples showed no drop in the
an additional 150 MTs of intermediate remaining unsuitable fuel during a elements that indicated the presence of
fuel oil (IFO) be stemmed. The bunkers scheduled dry-docking some months the automotive lubricants. However, it
were loaded into an empty bunker later. The off spec bunkers added was the view of the charterer’s surveyor
tank. Since there were little remaining additional deadfreight to the vessel, that the bunkers were not as bad as the
bunkers onboard prior to loading the thus reducing the amount of cargo that owner had suggested.
new bunkers, the Master and Chief could be carried.
Engineer agreed that the new bunkers The charterer then arranged that the
should be used. When the separators Case 2: Motor lube oil original shipboard sample be sent to
were started, it was noticed that large contamination a second bunker-testing agency for
quantities of sludge and water were Ship B took on IFO and marine diesel analysis. The results of that test showed
clogging sludge discharge passage. A oil (MDO) bunkers and the bunker- that the IFO and MDO conformed
separate sludge line was then fitted to testing agency received the bunker to the requirements of ISO 8217 as
collect the sludge in drums so as not to samples 5 days after the operation. The required by the chartering agreement,
overload the vessels sludge tank. bunkers were placed into 7 different but contained spent automotive
tanks. The sampling procedure was in lubricants.
It was determined that approximately accordance with the vessel’s bunkering
15% of the separators throughput was procedure. Two days later the bunker- The charterer contended that none
sludge. It was believed that the IFO did testing agency informed the vessel of of the surveyors or the bunker-testing
not have the proper time to settle due the results of the sample analysis. The agency ever requested for the bunker
to the short time period between the specifications stated in the charterparty to be removed. In addition, some of
stemming and purifying the bunkers. required that the bunkers be in the presumed off spec bunkers had
This created the large quantities of accordance with ISO 8217. already been mixed with other bunkers
emulsified sludge. The bunker-testing onboard by that time. However, the
not to do it – Bunker
operations
A Member’s vessel – a bulk carrier – and the slick spread, contaminating The above incident demonstrates how
recently had a spill of bunker oil in a the walls of four berths. A number of simple deficiencies and a small amount
dock area and clean up costs alone barges and other vessels in the vicinity of oil spilled can have significant
amounted to around USD 130,000. of these berths were also contaminated. consequences. Before any bunkering
The vessel was conducting an internal The vessel’s discharge operations were operation, including the internal
transfer of heavy fuel oil from a deep temporarily suspended. transfer of oil, procedures must be
tank to a settling tank and as a result followed to ensure that any potential
the bunker line became pressurised. Clean up was made difficult and deficiencies are rectified before it is too
Whilst ordinarily this might not have protracted because heavy fuel oil is late. On this occasion the importance
been a problem, the deck manifold for persistent in nature, meaning that it of blanking off manifold connections
the bunker line had not been closed. naturally dissipates slowly. not in use and plugging the scuppers
Consequently fuel escaped onto the became regrettably obvious.
starboard side of the deck and via the Claims from stevedores and barge
scuppers into the dock. owners for idle time, as a result of the
spill and clean up, are currently being
It was estimated that a quantity of 5 to reviewed. The Master is also to be
10 MT of oil found its way overboard fined.
The phrase “stone cold bonkers” (stone form), albeit that the charterers also question, may assist in avoiding
in coal bunkers), which was used to referred to a clause dealing with a problems or, at least, if problems do
describe a chief engineer’s demeanour on vessel’s description where the fuel was occur, in identifying which party bears
discovering large lumps of flint amongst described as “IF 180 CST”. The vessel, the risk involved. Of course, if there is
what was supposed to be best Welsh after taking fuel on board, sustained an express stipulation with regard to the
anthracite, suggests that the problems problems with the fuel injection bunkers then that must be complied
concerning bunkers, if not just fuel equipment, which led to damage to with.
oil, coincide with the introduction of both cylinder liners and piston crowns,
mechanical propulsion on vessels. which necessitated a deviation for Quantity of bunkers
repairs. The charterers argued that their Disputes in respect of the quantity
Whilst the problems associated with obligation was confined to supplying of bunkers delivered
poor quality bunkers have given rise to fuel with a designation “IF 180 CST”, It will come as no surprise to anyone
a number of serious disputes between given that that was the sole criteria to hear the complaint from a vessel
the respective parties involved in bunker contained within the charterparty. The owner alleging that he has been
operations (owners, charterers, physical owners, on the other hand, referred charged for bunkers in excess of what
suppliers and brokers), it has been noted to the passage in Wilford on Time he, purportedly, received. Whilst
by a London solicitor that the potential Charters3 at page 138, namely: tanks that are large and of a regular
for a major casualty is enormous where “The bunkers supplied by the charterers shape pose few difficulties insofar as
such casualty arises out of the provision of must be of reasonable general quality, ascertaining quantities, tanks which
substandard bunker fuel. suitable for the type of engines fitted to are of an irregular shape pose much
the particular ship.” greater problems. Any dispute will
The question of bunkers has provided largely depend upon the evidence
a considerable number of disputes for The tribunal found in favour of the available (this comment applies equally
members and clients over the years. owners. It is perhaps of note that for disputes in respect of quality). If
The following disputes appear most the tribunal seemed to have placed operational circumstances permit, the
frequently: considerable reliance upon the fact that bunkers can be loaded into previously
– Disputes in respect of bunker quality. it was the charterers who had control empty tanks, then it will be easier,
– Disputes in respect of bunker quantity of the bunker supply operation, in from an evidential standpoint, to
(quantity actually stemmed and quantities that they contracted with the supplier, convince a judge/tribunal that the
upon re-delivery). controlled where the vessels bunkered, position is correct. Further, well kept
– Disputes in respect of damage done to at what price were the bunkers and how records and contemporary documents
bunkers whilst aboard the vessel. much was to be bunkered. are of paramount importance. Lastly,
as disputes of this nature arise
Bunker Quality Finally, the authors of Bunkers4 opine as between the owner/charterer and the
The solicitor referred to above also follows on page 109: bunker supplier, it should be noted
mentioned that he could not recall the “(…) there appears to be a growing that the contracting party with the
last time he had seen a decent bunker consensus that, even without a bunker bunker supplier may have to act with
clause in a charterparty and, by and large, quality clause/fuel specification in considerable speed, as it is a feature
that comment holds true. In Nippon the charterparty, charterers are under of many bunker supply contracts that
Yusen Kaisha v. Alltrans Group of Canada an absolute obligation to provide should claims not be presented, or
Limited,1 the court was asked to consider bunkers which are reasonably fit for proceedings commenced, within a
whether Clause 2 of the NYPE form (1946 the vessel’s engines. If the engines are reasonably short period of time, then
edition) imposed a strict liability on the non-standard in any respect, thereby the purchaser waives all its rights
charterers with respect to the quality and requiring non-standard bunkers, then it against the bunker supplier; this is, by
fitness of the fuel supplied to the vessel, is of course for the owners to so advise and large, to be contrasted with the
or, in the alternative, the charterers were charterers whose obligation, otherwise, position between owner and charterer.
merely under a duty to use due diligence is simply to provide bunkers which
in ensuring that there were proper would be reasonably fit for the standard
bunkers. The court held that the duty on engine of the type in question.” Disputes in respect of bunkers
the charterers was an absolute one. upon re-delivery
The point being made reinforces the There are usually two types of dispute
In a subsequent London arbitration2 a comment referred to at the beginning in respect of bunkers upon re-delivery,
tribunal was asked, again, to deal with of this section: a properly drafted but there is one common denominator:
this issue (namely Clause 2 of the NYPE clause, applicable to the vessel in the volatility of bunker prices. The
1 1984, unreported.
2 Lloyd’s Maritime Law Newsletter 1/88.
3 Time Charters by Wilford, Coghlin & Kimball, 2nd Ed, 1982.
4 Bunkers by Fisher & Lux, 2nd Ed, 1994.
5 THE CAPTAIN DIAMANTIS (1997)1 Lloyd’s Rep. 362 and (1978)1 Lloyd’s Rep. 346.
6 Liability for said damage falls under the P&I cover – see Rule 39 of Assuranceforeningen Gard’s 2001 Statutes and Rules.
7 London Arbitration 8/98.
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