Bunkering Customer Expectation and Dispute Resolution

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BunkeringCustomer Expectation and Dispute
Resolution
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Bunkering

• Bunker A Container for Fuel
• To Put Fuel into the Bunker

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Effect of Bunker Cost. Vessel Type Suez
Max Voyage Rastanura Mumbai
Rastanura Distance 2786 NM Speed 13.2
Knots Voyage Days 15.43 Total Fuel
Conspn HO 556.77, DO 17.08 Freight _at_ WS
129.99 for 95000 MT USD 545846 Cost of Fuel_at_ HO
USD 325 / MT, DO USD 520 /MT USD 189831 Cost
of Fuel to Freight 34.7 Cost of Fuel has a
very critical effect on the operation cost of
Vessel.
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BUNKERING

• Bunkers is the name given to the fuel which
  ships burn in their diesel engines.
• The transfer of Fuel (FO/DO) from pipelines to a
  vessel, from barge to vessel, from Tank Truck to
  vessel, from terminal to barge or vessel, or ship
  to ship is termed as bunkering.

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TYPE OF FUEL USED FOR MAIN MACHINARIES ON BOARD A
VESSEL.

• MAIN ENGINE- FO, DO.
• GENERATORS (AUX. ENGINES)- DO, FO.
• AUXILIARY BOILER - DO, FO.
• EMERGENCY GENERATOR /
• LIFE BOAT ENGINES /
• EMERGENCY FIRE PUMP ENGINES /
• EMERGENCY AIR COMPRESSOR ENGINE - GO / DO.
• When sensitive cargoes are being carried and IG
  generators are fitted they also use gas oil

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BUNKER GRADES

• F.O. Grades 180 CST(RME-25)
• 380 CST(RMG-35)
• D.O. Grades MGO(DMA)
• LDO(DMC)
• MDO(DMB)

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FO SPEC. AS PER ISO 82171996 (E)
Characteristic Limit RME-25 RMG-35
density _at_ 15C, kg/m³ max. 991 991
Kinematic viscosity at 100C, mm²/s? max. 25 35
Flash point,C min, 60 60
Pour point(upper), C      
- winter quality max. 30 30
- summer quality max. 30 30
Ash, (m/m) max. 0.1 0.15
Water, (v/v) max. 1 1
Sulfur, (m/m) max. 5 5
vanadium, mg/kg max. 200 300
AluminiumSilicon,mg/kg max. 80 80
Total sediment, potential, (m/m) max. 0.1 0.1
1 mm²/s 1 cSt
(m/m - wt
mg/kg - ppm
RME - 25 - 180 CST
RMG - 35 - 380 CST
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DO SPEC. AS PER ISO 82171996 (E)
Characteristic Limit DMA DMB DMC
density _at_ 15C, kg/m³ max. 890 900 920
Viscosity at 40C, mm²/s? min 1,50    
  max. 6,00 11 14.0
Flash point,C min, 60 60 60
Pour point(upper), C        
- winter quality max. (-) 6 0 0
- summer quality max. 0 6 6
Sulfur, (m/m) max. 1.5 2 2
Cetane number min. 40 35  
Carbon residue, (m/m) max. 0.3 0.3 2.5
Ash, (m/m) max. 0.01 0.01 0.05
Sediment, m/m max.   0.07  
Total existent sediment, (m/m) max.   0.1
Water, (v/v) max.   0.3 0.3
vanadium, mg/kg max.   100
AluminiumSilicon,mg/kg max.   25
DMA - MGO (Marin Gas oil)
DMB - MDO(Marine Diesel Oil)
DMC - LDO (Light diesel Oil)
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PERCENTAGE LIFTING PER ANNUM ON AN AVERAGE

• LIFTING
• AT FUJAIRAH46
• AT SINGAPORE24
• AT PORT SAID/SUEZ...18
• AT UK CONTINENT08
• OTHERS..04

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QUANTITY SURVEYS

• Utmost care to be taken for any quantity shortage
• All over the World only BARGE FIGURES, BEFORE
  AFTER DELIVERY of bunkers are considered for
  computing the quantity delivered irrespective of
  the Ships soundings.
• Ships staff to witness the barge soundings as
  well as counter check the quantity received with
  Ships soundings.
• To avoid the discrepancy SCI has finalised Bunker
  quantity contract at Spore Fujairah/Kalba/Khorf
  akkan to ensure that surveyor is present before
  the start of bunkers till the completion submit
  the related report and any DISPUTES arising to be
  shorted out with the bunker supplier.

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QUALITY ANALYSIS

• Bunker Cell to arrange for quality testing random
  cases) inform Master and Agents for submitting
  the sealed oil samples collected at the barge
  manifold for forwarding to contracted lab, so as
  to receive the report within 72 hrs from the date
  of supply, which is to be monitored for the
  recommended remedial measures on board the
  vessels and if it does not match to ISO Spec
  8217 1996 E the dispute is to be identified and
  matter taken up with the supplier.

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BUNKERING

• 2 out of every 5 Oil spills are Bunker Spills
• Most Bunker spills are due to
• Poor communication with the barge/shore
• Poor condition of bunker pipeline due to
  infrequent usage
• Blow through for clearing the bunker hoses at
  end of the operation.
• Airlock in ships pipelines causing oil spray
• Open manholes, low level air-pipes pipelines.

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Oil Pollution Act of 1990
Background

• OPA90 was passed as an amendment to Federal
  Water Pollution Control Act of 1972
• Exxon Valdez Incident Valdez, AK 1989
• Mega Borg Incident Gulf of Mexico
• American Trader Incident California
• Several Smaller Oil Spills

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Oil Pollution Act of 1990
Background

• Enacted on 18th August 1990
• In Force on 18th August 1993
• Applicable to all vessels

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Oil Pollution Act of 1990
Liability

UNDER U.S. LAW THE LEGAL RESPONSIBILITY FOR
RESPONDING TO AND CLEANING UP AN OIL SPILL
RESTS WITH VESSEL OWNER
Liability Limits for vessels other than Oil
Tankers are GREATER of 600 / GT or 500,000
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Oil Pollution Act of 1990

• CRIMINAL PENALTIES FOR SPILL
• 2,500 to 25,000 and/or one year imprisonment
  for negligent violation,
• 5,000 to 50,000 per day and/or three years for
  knowing violation. The maximum can be doubled for
  a second offence.
• Upto 250,000 with 15 years for Knowing
  Endangerment.

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Oil Pollution Act of 1990

• CRIMINAL PENALTY for FAILURE to NOTIFY
  AUTHORITIES of SPILL
• Upto three years imprisonment (five years for
  second offence)
• A fine of Upto 250,000 for an individual
  (500,000 for an Organisation)

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SOPEP - MARPOL 73/78Shipboard Oil Pollution
Emergency Plan
SOPEP must be in accordance with the requirements
of Regulation 26 of the International Convention
for the Prevention of Pollution from Ship 1973
(MARPOL 73), as modified by the protocol for 1978
(TSPP 78) relating thereto, and approved by the
Class on behalf of the Flag Administration.

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SOPEP
The purpose of the plan is to provide to the
Master and Officers on board the ship with
respect to the steps to be taken when a pollution
incident has occurred or is likely to occur.

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SOPEP
The plan contains all information and operational
instructions required by the guidelines issued by
the International Maritime Organisation (IMO).

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SOPEP Response Equipment 7 Barrel Spill Kit

• Sorbent sufficient to absorb 7 Bbls of Oil
• Non-sparking hand scoops, shovels buckets
• Portable containers sufficient to hold
• 7 Bbls of recovered solid waste,
• 7 Bbls of recovered liquid waste
• Minimum 60 Ltrs of deck cleaning agent
• Personnel Protective Equipment to protect
• Inhalation hazard,
• Eye exposure,
• Skin contact
• Non sparking portable pump with hoses

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7 Barrel Spill Kit

• All of the above equipment to be ready for use on
  deck prior any oil transfer.
• The pump along with the appropriate hoses must be
  rigged and ready for immediate use.

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Vessel Responsibilities

• Make all required and appropriate notifications
• Ensure crew is safe and medical assistance
  arranged for
• Take actions necessary and prudent to stop or
  reduce discharge
• Follow your SOPEP / IRAM

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Bunker Transfer Procedures

• Oil Transfer Procedures must comply with
  33CFR155.750
• Must be posted available as per 33CFR155.740
• Operator must ensure compliance with these
  procedures as per 33CFR155.730
• Communication systems as per 33CFR155.785

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Face to Face Meeting prior Bunkering

• Hold Pre Transfer Conference as per 33CFR
  156.150
• Pre-Transfer Checklist as per 33CFR156.120
  33CFR156.150 has been completed
• Agreement on Methods of communication for start,
  topping off, change of tank Stopping the Oil
  Transfer
• Agreement on Emergency Shutdown Procedures.

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AIR POLLUTION PREVENTION MARPOL ANNEX
VI REGULATION 14   SULPHUR OXIDES   GLOBAL CAP OF
4.5 M/M ON THE SULPHUR CONTENT OF FUEL OIL   S0X
EMISSION CONTROL AREAS (SECA)   ANNEX VI
CONTAINS PROVISION ALLOWING FOR SPECIAL SOX
EMISSION CONTROL AREAS TO BE ESTABLISHED.   IN
THESE AREAS THE SULPHUR CONTENT OF ANY FUEL USED
ON BOARD IN GENERAL SHALL NOT EXCEED 1.5
M/M.   IF VESSEL IS TRADING IN SECA AREAS   ( a
) USE FUEL OIL WITH SULPHUR CONTENT OF MAX 1.5
M/M, OR USE EXHAUST GAS CLEANING SYSTEM TO REDUCE
SOX EMISSION TO 6 G/KWH OR LESS. THE BALTIC
SEA AREA IS DESIGNATED AS SECA ( WITH EFFECT FROM
19/5/2006)   NORTH SEA AREA ALSO WOULD BE
DESIGNATED AS SECA AREA BY 2007.   OTHER REGIONS
ALSO MAY FOLLOW IN DESINATING THEIR AREAS TO
PREVENT THEIR ENVIORNMENT POLLUTION.
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• FUEL OIL QUALITY
•  
•  
• REGULATION 18
•  
• THIS REGULATION CALLS FOR NEW MEASURES GOVERNING
  BOTH SALE AND USE OF BUNKERS WITH THE
• OBJECTIVE OF ENSURING THAT FUEL OIL BURNT ON
  BOARD SHIP DO NOT GIVE OFF HARMFUL EMISSION.
•  
•  
• FUEL OIL DELIVERED TO AND USED ON BOARD SHALL BE.
•  
• BLENDS OF HYDROCARBON DERIVED FROM PETROLEUM
  REFINING.
• SHALL BE FREE FROM INORGANIC ACID.
•  
• SHALL NOT INCLUDE ANY ADDED SUBSTANCE OR CHEMICAL
  WASTE WHICH EITHER -
•   ADVERSELY EFFECT THE PERFORMANCE OF MACHINERY.

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Bunker Supplies   Bunker suppliers are required
to record details of fuel oil for combustion
purpose delivered to ships of 400GT and above,
engaged in international voyages, by means of a
Bunker delivery note containing the following
information. Name and IMO number of receiving
ship port Date of commencement of delivery Name
address and telephone number of marine fuel oil
supplier Product names Quantity(metric
tons) Density at 15 G(kg/m 3 (ISO 3675)
Sulphur Content (m/m) (ISO 8754) A
declaration signed and certified by suppliers
representative that the fuel oil conforms to
annex VI requirements regulation 14(i) or 4(a)
and 18(i)
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Standard Bunker Manifold
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Baltic Sea Area Baltic Sea Gulf of Bothnia Gulf
of Finland Entrance to Baltic Sea
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Bunker Presentation Flanges Vessels 16000 to
25000 DWT 6 inches 25000 to 60000
DWT 6 inches 60000 to 160000 DWT 8
inches 160000 and above 8 inches
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Harmful Effects of SOX and NOX Sulphur Dioxide
(SO2) and Nitrogen Oxides Causes Acid Rain World
Shipping Fleet Releases About 5M Tonnes of SOX
Each Year Nitrogen Oxides Form When Fuel is
Burned at High Temperature Primary Source of NOX
from Ships are Diesel Engine Exhausts. The
World Shipping Fleet Releases about 5M Tonnes of
NOX Each Year.
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Bunker Delivery Bunker delivery notes to be
retained on board for a minimum of 3 years and
available for inspection. Suppliers must also
retain copy of bunker delivery note for at least
three years. Suppliers to provide a
representative fuel sample on completion of
bunkering. From 19th May 2005 all fuel oils to
be obtained from duly registered suppliers
(registered by the appropriate authorities in the
country in which they operate).
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Bunker Delivery The regulation imposes following
responsibilities on government with respect
supply of bunkers in their respective countries.
Main register of local supplies of fuel oil.
Require local suppliers to provide bunker
delivery notes and sealed samples. Require
local suppliers to retain bunker delivery notes.
Take appropriate action against suppliers found
to have supplied non compliant fuel oil. Inform
Flag Administration of ships found to have non
compliant fuel oil during port state control
inspection. Inform IMO fur circulation among
parties to 1997 protocol to MARPOL convention.
All cases where fuel oil suppliers have been
found to have supplied non compliant fuel oil.
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Areas of dispute. Quantity of bunkers supplied.
Quality of bunkers supplied. QUANTITY Barge
soundings. Before / after supply. Barge to
provide certified bunker table and tank and line
lay out. All tanks on board to be checked,
soundings taken before and after bunkering.
Provisions of flow meter before ships manifold.
Ships fuel tanks soundings / quantity before /
after. QUALITY Representatives sealed samples
to be provided. Oil Specification to be
provided. Specification to confirm to oil
delivered Bunker fuel analysis done by owners at
DNV / testing firms.
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NORMAL ISSUES Water in fuel Excess Sludge
Leading To Purification Problem. Presence of
cat fines leading to fuel pump plunger / barrel
seizures. High sulphur leading to acidic
corrosion and main engine liner wear. Low
calorific value leading to high fuel oil
consumption.
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Conclusion
? Know your Role ? Know how to implement the
Plan ? Follow-through with your assigned
responsibilities ? Stay Alert, Stay Safe,
Keep our Environment Clean.