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Guide to Handling Ship's Fuel Oil


Foreword

The Korea P&I Club is endeavoring at all times to become reliable


safety guard for the development of Korean shipping industry. Through
handling several thousands of marine accidents and claims in last 16
years I have realized again that it was impossible to develop firmly
Korean shipping industry without the pains and devotion of Korean
seafarers doing their best in the front line of the industry, and on the base
of such recognition I hereby come to publish Ships Accident Prevention
Manual together with the best experts in shipping business in order to
give practical assistance for field workers.

The guidance consists of five volumes; Guide to Prevention and Handling Accidentsfor responding various
accidents and claims, Guide to Safe Maneuvering, Guide to Handling Ship's Fuel Oil, Guide to Container
Securing and Guide to Prevention of Charter Party Disputes.

I would like to give my heartful thanks to the professors (Youngmo Kim, Youngsin Hwang, Sohyun Cho) of Korea
Institute of Maritime and Fisheries Technology, Captain Seonhong Kim - Pilot of Ulsan Port, and Mr. Taebeom Park
- the president of UMD Shipping Company, who did not sparing themselves for writing manuscript. I also would
like to give thanks to Hanjin Shipping company for taking photographs used in this guidance.

As this book is the first trial of binding various special fields into one volume synthetically, there would be some
dissatisfaction. The Korea P&I Club listens carefully to the requests and advices of relevant personnel concerned at
all times, and promises to supplement this book continuously.

Reminding again that a lot of loss of human lives and properties we have experienced so far could be prevented
mostly with a small concerns before the occurrence of accidents, I hope this book would be of a little help for ships
to prevent various accidents on board.

Thank you again for everybody caring for and concerning in the Korea P&I Club.

August, 2015
Gyungjae Lee

Chairman of the Korea P&I Club


Preface

As the sea has unexpected and potential dangers at all times in its origin, the person
in charge of safe ship operation is caring always about any accident that could be
occurred during her voyage.

Through the development of communication we can ask the company for advices
on post measures to be provided promptly in case of having any accident on board.
However, if the person in charge of the ship recognizes the situation properly, collects
necessary evidences in advance or asks core advices, the damages by the accident
could be minimized as much as those.

The Korea P&I Club has arranged to publish a book composing the thorough
knowledge to be kept in order to prevent accidents during ship operation and the
measures to be taken in order to minimize the damages in case of having any accident
on board.

We, joint authors of this book, have written this guide book on practical knowledges
learned in industry fields and academic world so far. Theoretical knowledges are
minimized and this book is composed with many case studies and matters to be taken
in practical jobs. In this time we have arranged guidances to five sections considered to
be necessary in preference such as Guide to Prevention and Handling Accidents, Safe
Maneuvering, Handling Ship's Fuel Oil, Container Securing and Prevention of Charter
Party Disputes, and we will expand the sections in future.

Due to the lack of time there would be a regret for insufficient delivery of information,
but we have a plan to supplement this book so as to make a substantial guide book if
occasion offers.

We hope this guide book help the person in charge of ship security, safety operation
and prevent accident, and give thanks to Mr. Gyungjae Lee, the chairman, Mr. Byungil
Moon, executive director of the Korea P&I Club for supporting the publication of this
guide book.

August, 2015

Joint Authors of the Book


Contents

Introduction 10

Case Study of Bunkering Accident 11

Characteristics of Ships Bunkers 22

Bunkering Procedures 26

Bunker Supply Contract 42

Handling Bunker Claims 48


Volume 3

Guide to Handling Ship's Fuel Oil

This guidance aims at enumerating briefly the actions to be taken by


the master and chief engineer of a ship in case of having an accident,
incident or problems that may cause claims against the shipowner or
manager of the vessel insured to the Korea P&I Club.

This is a guidebook only concerned with the risk of Protection and


Indemnity (P&I) including advices on how to protect your owners
interests in case of having a problem.

This guidance does not substitute any existing standing instructions


on accidents, procedures or reporting and etc. of the company.

KOREA P&I Club


3 Guide to Handling Ship's Fuel Oil

1. Introduction

In shipping industry where the fuel oil cost is the highest weight in direct ship
operation costs, many disputes are being occurred frequently during bunkering
operation. Accidents caused by poor bunker quality invite not only serious damage to
ships engines but also delay of ship operation, causing great loss consequently.

Through the development of refinery technology, and experiencing oil shock from
Middle East Asia and global economic crisis, the shipowners have come to use
relatively inexpensive and low quality fuel oils. By the popularization of using low
quality bunker the profit and efficiency of shipping companies have been improved,
but environmental problems caused by the mechanical failures onboard and poor
maintenance have been increased more than before.

We can take the examples of such problems; various operational problems in engine
fuel system such as clogging of purifier or filter, scoring or failure of fuel pump,
severe worn out of cylinder liner, stoppage of fuel injector running, corrosion or blow-
past of exhaust valve seat, and fouling of turbocharger turbine wheel; and marine
environmental pollutions by mishandling of bunker supply and air pollutions by
incomplete combustion, and etc.

In relation with bunker supply it becomes very important for ship operators to take
proper measures for minimizing its effect in case of having any problem with bunker
supply, as well as to aware of associated problems with bunker supply, and to confirm
proper fuel oils for ship engines have been supplied or not.

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The purpose of this guide is to provide basic knowledges on the use and management
of ships fuel oils for ships master, chief engineer, ships officers and shore
superintendents.

This guidance is also aimed at having ship operators recognize properly every
problems experiencing on board in the process of bunkering and handling bunker
fuel oils on board, such as a lot of loss of human lives, loss of ship or crucial marine
pollution accident, and provide ship operators how to get necessary evidences in case of
having any problem of bunker quantity and quality so as to minimize damages resulted
from the problem.

2. Case Study of Bunkering Accident

2.1 Mishandling of Bunker Tank Valve

1) Summary of Accident
Bulk carrier D of 45,026 gross tons was built in S Shipbuilding Co. Ltd. and
anchored at Jinhae Bay for delivery to a shipowner. Before delivery, the shipowner of
D requested bunker supply to the ship D, so bunker barge K got alongside on
port side of D and started bunker supply at about 1700 hours on 25 May, 2012.

Bunker quantities to be supplied were 450M/T of heavy fuel oil (MF380) and 30M/
T of diesel oil. All H.F.O. tanks of the ship except F.O. settling and service tanks were
empty at the time of bunkering.
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3 Guide to Handling Ship's Fuel Oil

Before bunkering, the chief engineer ordered the 2nd engineer to receive 450M/
T of H.F.O. in No.2 H.F.O. tanks (P&S) evenly. After that, bunker supply barge K
connected a bunker hose to the port side ships bunker manifold and started bunker
supply at about 1700 hours on 25 May, 2012.

In the middle of bunkering at about 1730 hours of the same day, ships crew found
some bunker oils were suddenly spouted out of the air vent of No.3 H.F.O. tank located
on upper deck, and the bunkering operation was stopped immediately. Some of the
spilled oils run over to the sea after spilling on deck. Spilled quantity of fuel oil into the
sea was estimated as about 190 liters.

2) Clean-up Operation
Right after the accident, the ship D asked the Korea Coast Guard to combat oil spill,
and 16 oil spill response vessels from the Korea Coast Guard and 2 oil spill response
vessels from the Korea Marine Environment Management Corporation were attended
at the combating from at about 2100 hours on 25 May to 1900 hours on 26 May, 2012.
The clean-up operation was conducted from the scene of accident to 6.5 miles off south
of Isu Island.

3) Causes of Accident
In case of loading the bunker of 450 tons into No.2 HFO (P&S) tank(927m ) the ship
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considered it has sufficient volume to receive the bunker and commenced bunkering
without paying attention greatly. However, the bunker tank valve of No.3 H.F.O.
tank(P)(capacity 110.6m ) was opened instead of opening the valve of No.2 H.F.O.
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tank(P), which caused the overflow of fuel oil and oil spill into the sea.

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[Figure 1] Stained shell plates caused by [Figure 2] Bunker tank valves in


fuel oil overflow engine room

2.2 Fuel Oil Overflow caused by Delayed Tank Changeover

1) Summary of Accident
General cargo ship W of 1,433 gross tons, registered at Jeju, Korea got
alongside at the Product Wharf of Gwangyang port for bunkering at about
1155 hours on 27 February, 2011. On around 1255 hours, bunker barge A got
alongside to port side of the vessel for supplying bunkers and started bunkering
at 1315 hours on the same day.

20M/T of Marine diesel oil were completely supplied at about 1335 hours
on the same day, however, about 30 liters of bunker C oil overflowed from the
starboard air vent of No.2 F.O. tank(C) and spilled to sea through the scupper and
over the gunwale of deck.
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3 Guide to Handling Ship's Fuel Oil

[Figure 3] Vessel spilled oils during bunkering at berth

2) Clean-up Operation
Right after the oil spills, the fact was reported to the Korea Coast Guard Yeosu
Office, and several oil response vessels from the Korea Coast Guard and the Korea
Marine Pollution Response Corporation joined in clean-up operation with oil fences
and absorbents etc. The clean-up operation was finished at about 1500 hours on 28
February, 2011.

3) Causes of Accident
(1) Proper communication was not made between the ship receiving bunker and
bunker barge during bunkering.

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(2) Duty officer and crew of the ship receiving bunker did not take measurement
of bunker quantities correctly. And after receiving bunker in No.2 F.O. tank(C), the
bunker tank valve of No.1 F.O. tank(C) to be received next was not opened in time
during tank changeover. Consequently oils overflowed from No.2 F.O. tank(C).

(3) Reducing the quantity of spilled oil was impracticable due to fact that ships deck
scuppers were not plugged effectively.

[Figure 4] Polluted sea around bunker barge


Korea P&I Club

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3 Guide to Handling Ship's Fuel Oil

2.3 Engine Damage Caused by Poor Quality of Bunker

1) Summary of Accident
General cargo ship "M" of 4,635 gross tons, registered at Jeju, Korea, was scheduled
to load cargo 4,175M/T at Surabaya, Indonesia and bound for Port of Zhenjiang, China.

As per charters arrangement, the bunker barge B got alongside on the ship M for
supplying 155M/T of fuel oil (180cst) into No.1 & No.2 F.O. tanks respectively. Before
bunkering, No.1 F.O. Tank was empty, while there was 25.57M/T of fuel oil in No.2 F.O.
tank, which was supplied in Korea.

Bunkering operation was completed on 21 October 2013, having loaded 93.61M/


T of fuel oil in No.1 F.O. tank and 60.85M/T in No.2 F.O. tank. The bunker supplier
provided the ship M with one bottle of fuel oil sample (seal number: 231007). After
completion of cargo loading M/V M left the port of Surabaya at 1755 hours on 26
October 2013.

[Figure 5] Main engine damaged by using poor quality bunker

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Ships Accident Prevention Manual

At about 2030 hours on the same day, the fuel oil in No.1 F.O. tank was commenced
to be used. At about noon on the following day, 27 October 2013, the chief engineer
discovered the turbocharger was surging and the temperatures of exhaust gas of some
cylinders were abnormally higher than before, and in addition the duty crew found that
much sludge and water were generated in the drain pipe of fuel oil service tank and
settling tank. So, the chief engineer immediately reduced the revolution of main engine
and made report of the fact to the master.

[Figure 6] Samples of fuel oil

On 30 October 2013, when the vessel was en route to Zhenjiang, No.3, 4 and 6 fuel
valves and No.4 and 6 cylinder exhaust valves of the vessel were replaced. As the chief
engineer suspected that the fuel oil supplied at the port of Surabaya had poor quality,
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he took one bottle of fuel oil sample by himself from No.1 F.O. tank on 3 November,
2013.

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The fuel oil in No.1 F.O. tank was burnt out on 7 November 2013, and the vessel
changed her course to Taiwan in order to supplement bunker, so as to protect
the engine from using the fuel oil in No.2 F.O. tank (loaded with the bunker oils
supplied at the port of Surabaya).

2) Causes of Accident
According to the results of test in laboratory, bunkers supplied at Surabaya were
identified that the following abnormal parameters might cause some problems to
the vessels main engine:

(1) Viscosity of oils sampled from the pipeline of bunker tank has shown
193.3mm2/s against the critical limit of 180mm2/s, which might have caused poor
injection and combustion of fuel oils;

(2) Water contents of fuel oils were 6.5% and 6.7% in both samples respectively
higher than the minimum limit of water contents of 0.5%, which might have caused
problems in the fuel injection equipment and poor combustion, and finally had
generated sediments in cylinder, turbocharger etc.; and

(3) All of the sediments of the samples collected from the pipes of fuel bunker
tank and the ashes of the samples collected from No. 1 F.O tank had caused
problems in the fuel injection equipment as well as damages to the cylinder such as
abnormal worn out and etc.

2.4 Claims Caused by Insufficient Evidences

1) Summary of Accident

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The ship was chartered for six months on the conditions of the General Time Charter
Party (GENTIME). The Dutch time charterer ordered the ship to bunker 1,000M/T of
I.F.O. and 200M/T of M.D.O. at Rotterdam, Netherlands. The I.F.O. was loaded in a
tank having 200M/T of fuel oil bunkered previously, which was common practices on
receiving bunkers in the ship. The chief engineer did not take her own fuel oil sample at
the ships bunker manifold during receiving bunker.

The ship did not use the bunkers loaded at the port of Rotterdam till 5 days after her
sailing from Rotterdam. The problem was raised after the days. The chief engineer
recorded all the matters concerned with the problems in the Engine room Logbook and
his personal notebook. After having problems with the bunker the ship deviated to the
port of Piombino and then informed the charterer of the problems, holding the charterer
responsible and liable for it.

The charterer refused to bear the responsibilities by asserting that the bunker used
was not those supplied at the port of Rotterdam as the bunker was not loaded in an
empty fuel oil tank at the time. The sample provided by the supplier at Rotterdam
was analysed and this showed that the bunkers met the charter party specification. In
addition, a sample provided by the bunker supplier at the another port was also found to
be within the charter party specification.

However, according to the result of P&I survey, the problems had been caused by the
incompatibility of the two bunkers between the existing bunker onboard and the bunker
supplied at Rotterdam, so the shipowner discharged ashore the bunker supplied at
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Rotterdam and re-bunkered with a fresh bunker at the port of Piombino.

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3 Guide to Handling Ship's Fuel Oil

The shipowner claimed to the charterer for the cost of damage to the ships main
engine, loss of time and the cost of discharging bunkers. But the charterer rejected the
claim pointing to the fact that samples showed on-specification. The shipowners P&I
Club also rejected to pay the legal expenses related with the loss claims.

2) Causes of Accident
It is probable that the bunkers supplied at the previous port of Rotterdam did not meet
the standard specification prescribed in the charter party, different from the result of
sample test. It was certain that the bunker concerned was not suitable for the ships fuel
oils in a standpoint of sludge formation and raising difficulties in use. However, the
responsibility for approving the breach of contract lies at the shipowner. The shipowner
failed to secure the evidence that the charterer did not supply the vessel with the bunker
meeting to the standard specification in the charter party.

3) Learning from Accident


The shipowner was relying on samples provided by suppliers which showed the
bunkers to be on-specification. It is likely that one or even both of those samples were
not truly representative of the bunkers actually supplied to the ship. If the shipowner
had routinely sampled bunkers at the ships manifold, it would have been able to test
with the samples collected at ships manifold.

And the shipowners P&I club did not feel like covering the responsibilities caused by
ships deviation because of the wrong sampling and the shipboard fuel oil management
practices. No evidence disclosed that the supplied bunker oils were off-specification,
and that therefore the deviation was reasonable. Furthermore the shipowner had
informed the P&I club of the ships deviation after the deviation had been started.

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2.5 Bunker Supplier Overstated the Supplied Quantity

1) Summary of Accident
Dispute in bunker quantity was raised several days after receiving the bunker on
board. The ship was underway at the time of disclosing the problem and the dispute
became hard to solve because it was difficult to conclude how the problem was raised.

Overstated quantity of bunker could be made usually by pumping air into the bunker
or by heating the bunker during bunkering operation, so called as Cappuccino effect.

If the engineer is experienced person, he/she should monitor the bunkering process
thoroughly and check every matter visually or physically together with monitoring the
temperature of receiving bunker as well as checking any sign of pumping air into the
bunker.

2) Learning from Accident


(1) The ship should properly prepare for receiving bunker and monitoring the supply
of fuel oil;
(2) The vessel should not overlook the importance of bunker supply operation;
(3) Well experienced ships crew and supporting by bunker surveyor ashore would
be helpful to mitigate the fraud of bunker quantity; and
(4) A mass flow meter of the receiving vessel can assist to determine exact
quantities supplied, as mass measurement may be more accurate than the volume
measurement.
Korea P&I Club

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3 Guide to Handling Ship's Fuel Oil

3. Characteristics of Ships Bunkers

3.1 Definition of Ships Fuel Oil

Fuel oil is a material that produces heat while being consumed by burning.
Ships fuel is mainly heavy fuel oil (H.F.O.) refined from crude oil.

Heavy fuel oils are blended products based on the residues from refinery
distillation and cracking processes. Heavy Fuel Oil (H.F.O.) is so named because
of its high viscosity; it almost resembles tar when cold. They require heating for
storage and combustion. Heavy fuel oils are widely used in marine applications
in combustion equipment such as main engines, auxiliary engines and boilers.

As a residual product, H.F.O. is a relatively inexpensive fuel typically its costs


around 30% less than distillate fuels. It has become the standard fuel for large
and slow speed marine diesel engines; this was especially so during the oil crises
of the 1970s and 1980s. Its use required extensive research and development of the
fuel injection system and other components of low and medium speed engines.

3.2 Degradation of Marine Fuel Oil

1) Degradation of Marine Fuel Oil


Low grade heavy oil has inherent problems throughout the whole process of
bunkering to injection (whole process of physical changes). Sufficient study and
review as well as active measures are required in using this low grade oil.

Based on the research data for the problems invited in using low grade fuel oils

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Ships Accident Prevention Manual

for existing engines, precautions are required for the problems of low grade fuel
oils and its handling.

2) Problems Associated with Properties of Low Grade Oils


Residual oil after the high-tech refining has very high viscosity and contains
such impurities of sulphur, acids, asphaltene, vanadium and nitrate, and high
concentration of catalysts like Aluminum and Silica.

Marine F.O., on the other hand, is produced today with this residual oil mixed
with light oil to reduce the viscosity only to meet the initial requirements to be
used. In case of using this unstable mixtures of oils in lowered viscosity only,
various problems may occur including followings:

High viscosity: Excessive injection pressure or generation of vapor lock


by high temperature heating;
High specific gravity: Lowered purification efficiency and excessive wear;
Increased sulphur: Low temperature corrosion wear and deterioration of L.O.;
Increased residual of carbon and asphaltene: Poor combustion,
carbon accumulation, stuck ring, scuffing;
Increased ash, vanadium and natrium: High temperature corrosion,
corrosion of valve face and seat;
Mixture of alumina and silica: Abnormal wears of cylinder liner, piston
ring and F.O. pump;
High fluidity ignition: Malfunction of injection pump control, and
hindrance in oil transfer;
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Lowered ignition (low Cetane value): Prolonged ignition delay; and


Low affinity (mixture stability): sludge is produced when blending.

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3) Precaution for Handling Low Grade Oil


Low grade heavy oil has low flashing point and stability relatively in its storage
and handling. However, following precautions should be observed when using:

(1) Make sure the specification when bunkering and no mixing with other oils.
As the specification of bunker varies according to the bunker suppliers and
bunkering stations, the specification of bunker should be confirmed and its
coarseness should be distinguished whenever receiving bunkers, so as to prevent
the dispute in bunkers in advance. In case of loading different grade of oils into one
tank a large quantity of sludge could be generated due to lack of affinity between
those. Therefore loading different grade of oils into one tank should be avoided as
practicable as possible, and in case of having mixture bunkers the tank of mixtures
should be used prior to other bunker tanks of one grade.

(2) Storage and D/B F.O. Tank Heating


In order to ensure smooth pumping F.O. should be heated to 5 higher than the
pouring point, but should not exceed 30 for preventing cargo damage.

(3) Transferring of Fuel Oil


Because of high viscosity of oils there would be a fear about overloading to oil
transfer pump. It is preferable to transfer oils in longer time with small transfer
quantity.

(4) Centrifugal Purification


Due to its high specific gravity, the boundary of sealing water in the F.O.
purifier becomes unstable leading to a possibility of sludge carryover or
sealing water contaminating F.O. (water carryover). Following precautions,
therefore, shall be observed:

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Selecting correct/optimal diameter of gravity disc;


Keeping purifier inlet temperature to 98: moisture evaporation
and separation of ultrafine particles;
Parallel operation: to ensure low oil throughput amount, adjust the
feed rate to clarifier to ensure longer staying of oil in the separator
bowl to give better separation of solids;
Increase number of sludge discharge: keep 2 hours interval;
Change of operation mode depending upon S.G, for applicable vessel
only; and
Clarifying Purifying Operation Mode.

(5) F.O. Service System


Strict management on viscosity
When using low grade oil, the heating of F.O. should be increased so as to
maintain the most optimum injection viscosity value of 180 CST 50 (or
to the value when using the conventional C-oil). In case of the vessel not
having Viscolator, however, the heating temperature should be adjusted
suitably according to indicator diagram, exhaust temperature and color of
exhaust gas.
Consideration for stability of fuel oil
Non-affinity of mixture of low grade oil with diesel oil causes sludge
formation, which leads to burnt and/or stuck F.O. pump plunger and
barrel. Efforts must be made, therefore, to minimize mixture in the
mixing tank when changing bunkers. If sludge has been found to have
formed, lower the temperature until no sludge is formed and add fuel oil
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treatment chemicals to stabilize the fuel oil.

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3 Guide to Handling Ship's Fuel Oil

(6) Maintenance and Management


Shorten the interval of cleaning and maintenance;
Shorten the interval of T/C cleaning;
Sufficient warming up when starting engine;
Sufficient air blow after engine is finished and sufficient supply of
cylinder oil during turning;
Adjust fuel injection timing (When ignition delay is excessive,
advance injection timing by 1~2);
Use suitable combustion agent;
Management of L.O.: Reduce amount of L.O. to increase
purification efficiency and to protect against possibility of
damage by carbon residue; and
Keep proper temperature of cooling water for fuel injection valve. If the
temperature is too high, carbon residue may accumulate on injection
valve tip, and if it is too low, poor combustion may be caused since the
spontaneous firing point is higher than that of good quality heavy oil.

4. Bunkering Procedures

Ships should be supplied with the additional bunker oils for the bunker
consumed at sea.

Bunkering is conducted in normal at anchor or at berth alongside, and there are


various methods of bunkering by using bunker barge, storage tank ashore, tank
lorry and etc. Bunkering procedures have a little difference by each country, but
most of them are almost similar.

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[Figure 7] Vessel in Preparation for Bunkering

4.1 Preparation

1) Responsibility and Authority


(1) Master
The master of a ship has the responsibility for all the matters that happens
on a ship. So, the master has the responsibility at all times for monitoring and
checking the bunkering operation even if it is conducted by Engine Department.

The master should be aware of all over the bunkering operation such as
bunkering quantity to be received, distribution of fuel oils, time of starting
bunkering, officers in charge of the operation, estimated time of completion
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of bunkering and etc. together with the communication method with every
personnel concerned.

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3 Guide to Handling Ship's Fuel Oil

[Figure 8] Connecting bunkering hoses

(2) Chief Engineer


The chief engineer has the responsibility for the matters concerned with every
matter in the engine room including fuel oil systems and bunkering. Taking
fuel oil (bunkering) is a potentially high risk operation and therefore it should
always be the chief engineers responsibility. This should be clearly stated in the
company safety management system. If certain tasks are delegated they should
be monitored and checked by the chief engineer.

The chief engineer should participate in bunkering operations positively and


allow the engineers only of well familiarized with bunkering to conduct the
bunkering.

(3) Engineer in Charge of Bunkering


The second engineer is usually in charge for bunkering and assists the chief
engineer during bunkering operation.

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Every engineer of a ship should be aware of the bunkering system thoroughly.


The engineer in charge of bunkering should confirm the fuel oil tanks to receive
bunker oil before bunkering, and should put the identification tags on the valves
of open/close and position of valves so as to be recognized easily.

2) Bunker planning
The accurate piping diagram of bunkering system onboard must be
fully understood and signed by the officers involved in the operation;
The plan should show the distribution of the bunkers and be posted at
the bunkering station during bunkering;
Ideally the bunkering plan should show the amount of fuel onboard the
ship before commencing bunkers, the amount of fuel to be bunkered
and the plan of distribution of bunkers with tank soundings expected
upon completion;
Bunker tank sounding tables should be available to all personnel concerned;
and
In order to confirm all the system are ready for bunker supply, the system
should be rechecked by another suitable engineer.

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[Figure 9] Piping diagram and bunkering plan [Figure 10] Tools for pollution prevention

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3) Communication
(1) The importance of communication
Before commencing bunkering operation, an effective and reliable means of
communication should be established and agreed between both parties, the
supplier and the receiver.

The ship should ensure that the command to stop and slow down bunkering
speed has been confirmed between the supplier and receiver of the bunker.

Also, in case of communication failure between both parties, there should be


an agreed Emergency Stop Signal. If the emergency stop signal is made, the
bunkering operation should be stopped immediately.

The major communication equipment should be checked regularly during


bunkering operation.

(2) Communication Equipment


The most common means of communication during the bunkering operation
is the portable VHF radio equipment, and the transceivers are used as auxiliary
means.

Communication state between the bunker station and the engine room should
be tested in advance to ensure that noise from the machinery space does not
interfere or block the communication from the deck and does not lead to
misunderstanding. There are headsets available on the market that have noise
cancellation technology and are ideal for engine room to deck communication.

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[Figure 11] Portable VHF radio equipment


(3) Hand Signals
The illustration below is a typical emergency communication guide for use
when bunkering. It is good practice for the ship to issue the bunker supplier with
this before commencing bunkering. Consideration must be taken to language
difficulties between the ship and the bunker barge. Mutually agreed signals and
commands must be tested prior to commencing pumping.

Hold Wait Slow


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Stop Fast Finish

[Figure 12] Example of communication guide in bunkering

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4.2 Measures for Pollution Prevention

There is always a risk of spillage during bunkering operation

Oil spillage could be caused by defect of flexible bunkering hoses, or by


breaking of damaged gasket, inappropriate opening or closing valves, or by
accidential overflow of bunker receiving tank.

In order to prevent environmental pollution, the pollution prevention procedures


should be posted in appropriate place.

1) Mooring Operation
Ships bunkering is conducted at berth by receiving bunkers from shore terminal
or by receiving it from a bunker barge.

The ship should always ensure that the moorings from the bunker barge are
properly secured, are sufficient in number of mooring lines to prevent the barge
from moving, and are in good condition. They should be checked continuously.
Particular attention should be given to the moorings in rivers and channels where
passing traffic can force the moorings to surge and possibly break the fuel hose
or hose connections.

Before bunkering is commenced it is highly recommended to inspect the bunker


hose for any signs of damage. If there is any doubt the last hose test certificate
should be asked to confirm.

2) Ship to Ship Bunkering

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Occasionally ships trading to certain areas are asked to bunker at sea. This is
usually caused by local situation of the port or high bunker price.

When asked to carry out ship to ship (STS) bunker operations, the master
should check and confirm the followings:
Carrying out risk assessment;
Compliance with the Ship to Ship guidelines provided by the Oil
Companies International Marine Forum (OCIMF);
The master being fully informed as to the operation including;
- location, weather, swell
- fitness of fendering
- particulars of bunkering ship
Confirmation that the bunker hose is in a good condition and certified; and
Bunker quality and quantity assessment.

3) Shipboard Oil Pollution Emergency Plan (SOPEP) Equipment


At the bunker manifold and wherever necessary, as per the ships SOPEP plan,
the SOPEP equipment should be kept in a state of immediate use, to avoid the
risk of an oil spill and pollution during the bunkering operation.

The SOPEP locker should have following items at the minimum:


Absorbents(rolls, pads, granules, materials and etc.);
Brooms;
Shovels;
Mops;
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Scoops;
Empty receptacles (200 litres capacity);

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3 Guide to Handling Ship's Fuel Oil

Portable air driven pumps;


Oil boom for small spill containment; and
Oil spill dispersants.

These items must be stowed in an easily accessible locker, clearly marked,


and must be brought on deck ready for immediate use, prior to all bunkering
operations.

As previously mentioned, emergency stop procedures must be in place and all


scupper plugs and drip tray plugs should be fitted to minimize oil pollution if a
spill occurs.

4.3 Measuring Tank Capacity

Tank capacities should be monitored continuously during bunkering operation


by using sounding and/or ullage.

[Figure 13] Soundings on bunker barge

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Failure to use the correct tables for the sounding or ullage may result in a
quantity miscalculation, and consequently an oil overflow.

Small ships may have tank gauges fitted directly on the bunker tank. These
gauges should be checked and calibrated every docking cycle to ensure that they
are fully operational and accurate.

The ships crew should have certain knowledges as to how the tanks can
be filled in full and safely. It is often normal to fill bunker tanks up to 90%
capacity or less. Some tanks may require less due to unusual shape and internal
configuration which can cause air locks and pockets.

[Figure 14] Sounding ships fuel oil tank


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3 Guide to Handling Ship's Fuel Oil

4.4 Bunkering Procedures

(1) The officer responsible for bunkering should connect the bunker hose after
confirming the condition of vessel as well as the bunker barge, and should post
one bunkering watch member at the point of hose connection and another to
patrol around lines, air vent and tanks (members of bunkering team should be
minimum three persons).

[Figure 15] Pressure gauges at bunkering manifold

(2) Rate of bunkering per hour and delivery pressure of bunker oil should
be adjusted in consultation with the representative of bunker supplier
(Delivery capacity of bunker ship, setting of ships bunker line and maximum
bunkering pressure should be checked in order to prevent marine pollution
and overflow).

(3) Bunkering should be started at low pressure first, increasing gradually

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thereafter, while constantly checking for any oil leakage.

(4) Any mistake in bunkering operation may cause serious disaster to


environment, so the checking according to the bunkering checklist should be
carried out.

(5) Ships mooring ropes should be adjusted according to weather condition,


tidal change, ships draft and trim, and etc.

(6) A sample of the fuel oil delivered to the ship should be obtained at the
receiving vessels manifold and should not be obtained on the bunker barge.
The place and method of sampling should be agreed in written document
with the supplier before bunker delivery. When taking samples, authorized
representatives of the vessel and the bunker barge must attend jointly at the
sampling areas.

(7) During F.O. bunkering, sample oil of at least 400 ml or more should
be taken from vessels manifold and the sample should be filled into
the container up to 90 5% level and sealed after signing on it by both
parties. The sample container shall be rapidly forwarded to the designated
laboratory for analysis. Samples for the custody on board should be kept in
a safe place other than accommodation area at least for one year.

(8) In case of bunkering into several tanks at the same time the flow rate should
be appropriately adjusted in consideration of quantity to be received. Valves shall
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be so adjusted as to receive bunkers in the fuel oil tank located the most far away
from manifold first, and in case of tank change-over the fact should be informed
to the bunker supplier in order to prevent sudden rise of oil level in other tanks.
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3 Guide to Handling Ship's Fuel Oil

(9) The tanks which have been completed bunkering should be checked
continuously by tank sounding and confirmed whether the supplying bunker
is stopped completely or not.

(10) When the watch keeping member in charge of bunkering is to change the
shift during the process of bunkering, the procedures for handing over and taking
over should be executed thoroughly and strictly after acquiring the permission by
the responsible officer in charge.

(11) During the bunkering process, the officer in charge should check the
gas concentration of H 2S and benzene periodically. If the concentration is
found higher than 5ppm of H2S (vol.) or 1ppm of benzene (vol.), bunkering
personnel and those working nearby must wear emergency breathing
apparatus before joining at the work (only applicable to all tankers & gas
carriers).

4.5 Completion of Bunkering

(1) When bunkering is completed, take soundings 2~3 times at least after
waiting for a while for disappearing of bubbles.

(2) After performing air blow, close filling valve at hose connection side, and
close other valves after all residual oils inside the pipe have flown into tanks.

(3) Install oil drip tray under the hose connection part and disconnect the hose
under instruction of responsible officer (bunker hose should be disconnected
only after making final confirmation of received quantity).

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(4) Perform checks in accordance with the bunkering checklist.

(5) Be careful for the disposal of oily waste rags and saw dusts (particularly in
rainy weather).

(6) After completion of bunkering, the name of bunker barge, actual received
quantity, time taken, place of bunkering, delivery receipt and other related
matters should be reported to relevant team of the company.

(7) Fuel oil storage tanks, name of port, bunkering time, type of F.O., bunker
quantity, tank identifying number should be recorded in the Oil Record Book.

(8) After bunkering, fuel oil tanks should be frequently sounded to determine
residual quantity, and recorded.

(9) The chief engineer should take samples of bunker for the analysis
of the received F.O. and should forward to the designated laboratory attaching
with a Bunker Delivery Receipt. An analysis report received from the laboratory
should be checked whether it is suitable for ISO 8217:2005 standard. Otherwise,
the chief engineer should consult with the superintendent to use the fuel oil.

4.6 Continuous Checks

The chief engineer should always be aware of all bunkering process at all times
and be in charge of the bunkering operation in overall.
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During bunkering operation the following procedures should be observed:

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3 Guide to Handling Ship's Fuel Oil

Witness taking and sealing of a minimum three representative


product samples;
Check the bunker line pressure regularly to ensure it is not too high;
Check and record the temperature of the fuel as it is pumped on board;
Monitor connections of bunkering line and flow of bunker;
Monitor the sight glass in the engine room to ensure no overflow is
taking place;
Changeover tanks whenever necessary(always open the other tank
before isolating the full one);
Check the rate at which bunkers are received;
Check the tightness and slackness of mooring ropes;
Check trim and list of the bunker barge and the ship; and
Continuous monitoring and look-outs for the ships position and
mooring arrangements when at anchor.

[Figure 16] Sampling of bunker oils

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4.7 Cleanliness and Arrangement

(1) Keep clean engine room. This helps reduce waste oil/water and reduces the
necessity for disposal and use of an oily water separator.

(2) Always ensure that save-alls are drained of water before bunkering, taking
care to ensure any residual oil in the save-all is not allowed spilling into the
sea. Use a portable hand pump if required.

(3) Clean and maintain bunkering valves and in-line filters if fitted, by following
the ships planned maintenance schedules. Failure to maintain bunkering valves
may allow them to leak.

(4) Always leave the bunkering area clean when bunkers have been completed.
Accidental small spillages will present a slip hazard.

(5) Do not forget to fit securely blank flanges at bunkering manifold, ensuring
that the gasket is in a satisfactory condition

(6) Remember that oil has carcinogenic (cancer causing) substance. Ensure
suitable personal protective equipment is used at all times when handling
fuel oil. Refer to material safety data sheets for H.F.O. for precautions and
information.

4.8 Testing Samples Onboard


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Collecting of bunker samples is the most important factors among the bunkering

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procedures. There are numerous fuel testing organizations that offer good advices
and equipment for fuel testing onboard. Below is an example of three onboard
tests that can be carried out on fuel oil during or immediately after bunkering to
determine fuel density, fuel compatibility and water content.

1) Fuel density
The density meter is suitable for diesel and residual fuel oils. It is used to
confirm the quantity of delivered fuel, verify that the correct grade of fuel
has been delivered, estimate the combustion performance (Calculated Carbon
Aromaticity Index CCAI), and correct viscosity in centi-Poise (cP) or centi-
stokes (cst). The density meter measures density by using a hydrometer dropped
into warmed oil.

2) Compatibility tester
The oil compatibility tester is very useful for testing fuel oils. This equipment is
an extremely helpful tool for engineers faced with the necessity to mix or blend
residual fuel oil.

3) Water in oil test kit


The digital water in oil test/analysis kit is one method used for onboard testing.
The kit provides digital analysis and gives accurate results for monitoring trends.
It can be used for determining water in all fuel oils and lubricating oils.

5. Bunker Supply Contract

5.1 Process of Bunker Supply Contract

1) Contract procedures
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Even though ship operator (shipowner or time charterer) may enter into a direct
contract, it is more common for the supply of bunkers to be arranged through a
bunker broker.

The bunker purchaser will offer to more than one bunker brokers, which will
in turn contract suppliers or traders and invite offers to supply the bunkers.
Inevitably negotiation will follow and finally one of the offers will be accepted.
A contract enters into at that point and will normally be evidenced by a telex or
facsimile which confirms the terms agreed or confirmation of stem.

Generally the details of contract will be described in standard terms and


conditions which one party will ask to be incorporated into the contract. Usually,
the terms and conditions incorporated are those of the supplier.

2) Responsibility of bunker broker


The bunker broker is an agent of the purchaser of the bunkers. The brokers
responsibility on the contract in the event of a dispute is thus limited so that
usually the ship operator will only have a claim against the broker when it has
exceeded the terms of its authority or it has failed to carry out its role with due
care. Also, the broker will not be liable for the purchaser against a breach of
contract on the part of the supplier (for example, the supplier provides poor
quality bunker or bunkers of the wrong quantity).

5.2 Terms of the Contract


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1) BIMCO standard form for bunker supply


Recently, the Baltic and International Maritime Conference (BIMCO)

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3 Guide to Handling Ship's Fuel Oil

introduced a standard form for bunker supply. In early time, it was called
FUELCON but nowadays renamed as a BIMCO Standard Bunker Contract
2015. As the bunker supplier like their terms and conditions of contract, these
contracts however have gained little attraction within the industry, this form
has the role of appropriate guide for the bunker purchaser with balance and
convenience of operation.

2) Confirmation of stem
The terms and conditions agreed and specified by both parties are approved
in normal by confirmation of stem through fax. In general the confirmation of
stem is composed of price of bunkers, place and time of bunkering, quantity of
ordered bunkers, quality of bunkers, and other standard terms.

3) Clauses of bunker supply contract


The terms of bunker supply contract will commonly contain provisions relating
to limitation of liability, the time within which claims must be brought against
the supplier and the clauses related to sampling method of bunkers.

(1) Limitation of liability


Standard terms and conditions often aim at minimizing the liability that can
be attributed to the bunker supplier, as an example In no event shall seller's
liability for any claim or claims arising under this contract related to a particular
nomination exceed in the aggregate the sum of $300,000.

(2) Time bar


The standard terms and conditions prescribe the time bar at all times by
which any claim should be brought. These time bars should pose no real

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problem in questions of quantity as this should be ascertainable following


bunkering operations. However, this is not the case in quality disputes where off
specification bunkers may affect the performance of the engine over a longer
period of time.

(3) Manner in which sampling of bunkers takes place


One of the most important aspects of the bunkering procedure is sampling.
As may be expected sampling is a highly contentious subject often leading to
disputes between the parties involved. On the operators side, there is a clear
preference for sampling at the receiving ships bunker manifold, which may give
the least possibility of tampering. Bunker suppliers on the other hand will almost
always insist upon sampling at bunker supply barge.

4) Practical interpretation
(1) Proper quality
Bunkers were supplied to the ship at the request of buyer under the condition of
national standards, but ship operator denied to pay the price because that bunkers
were deficient and not stable. The court held that even though there is no standard for
the specific characteristics regarded by the ship operator as stable, the seller should
not supply the fuel oil that is not satisfied by the buyer. In other words the court
judged as the fuel oil that could not be used on ship is not proper quality of bunker
even though the fuel oil meets the standard requirements.

(2) Fit for the purpose


When a ship orders to bunker fuel oils, the purchaser should have the seller
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acknowledge the specific purposes of bunker. Therefore, in addition to the

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expressed terms in the charter party, there are also implied terms that the bunker
oil should be fit reasonably for the purpose of existing ships.

5.3 Time Charter and Bunker Fuel Oil

1) Bunkers supplied under the time charter


Under the voyage charter the shipowner purchases the bunkers and the charterer
has no chance to control over the daily operation of the ship on charter. However,
under the time charter, it is the charterers responsibility to arrange for the supply
of bunkers to the ship. Therefore, there is no direct contractual relationship
between the shipowner and the bunker supplier as the time charterer has the
bunker supply contract with the supplier.

2) Ownership of bunker
When a ship has been supplied with off-specification bunkers, it becomes
important to know who owns the bunkers onboard the ship. Even though off-
specification bunkers have considerable price and, while the safety of the
ship, her crew and cargo must always come first, the shipowner cannot simply
disregard ownership of the bunkers when dealing with them.

Under the time charter the time charterer will buy and pay for the bunker,
therefore the ownership of bunker lies to the time charterer.

The ownership of the bunker passes back to the shipowner on re-delivery of the
ship under the common time charter. The shipowner will then be obliged to pay
the bunkers onboard at the time of re-delivery, usually at a price determined by
the terms of the charter party.

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3) Object of claims
The bunker supply contract is concluded between the bunker supplier and the
time charterer under the time charter. Therefore, the bunker supplier will have
no rights against the shipowner or the ship. Also, under the time charter, the
charterer has no authority to bind the shipowner.

The supply of bunkers to a ship may give the supplier a maritime lien claim
against the ship. To protect the ship against the bunker claim, a shipowner may
seek to endorse the bunker delivery receipt with a prohibition of lien notice, even
though the effect of such notice is questionable.

4) Breach of contract by charterer


If the charterer did not supply bunker under the time charter, the charterer is
liable for any losses from breaching the contract against the shipowner. The
shipowner should decide whether to use the bunker for ships engine or not.

In case the charterer is faced with serious risk that the bunker supplied to the
ship cannot be used safely for the ship, the shipowner should ask the charterer
to discharge the bunker ashore and replenish new bunker to be used safely. The
shipowner may discharge the bunker in problem ashore and take measures to
receive new bunker, and if the charterer refuse this requirement the shipowner
has the right to claim against the charterer.

As the period of de-bunkering ashore and re-bunkering is not included in the


terms of off-hire under the time charter, the time charter remains in effective.
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However, the shipowner would be recovered for the time loss of off-hire which
was caused by the breach of time charterers obligation.

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Even though the charterer compensates for the claim of shipowner by the breach
of charter party, the charterer is able to shift the claim on the bunker supplier in
accordance with the bunker supply contract.

6. Handling Bunker Claims

6.1 Dubious Practices in Bunkering

The vast majority of companies involved in the fuel oil supply and bunkering
industry carry out their business in an honest and professional manner. The
behaviour of a few individuals can cast a shadow over the whole industry,
but genuine mistakes can be made. It is important to be aware of the type of
malpractice which has occurred and may be used again. Such malpractice can
result in bunker claims.

1) Fuel oil delivery: quantity


One method of adjusting the delivered quantity of fuel oil is the measuring the
quantity twice. This is done by transferring the fuel from one tank to another by
gravity during the time of readings. One of the quantities measured in first tank
is then dropped by gravity to a convenient slack tank which will be measured
last. Usually this is achieved by transferring from a fuel tank aft to a slack tank
forward of the ship. Therefore, the first tank should be measured again before
confirming delivery and do not agree with the measured quantity only.

2) Flowmeter re-circulation lines


Sometimes bunker barge flowmeters are fitted with a small bleed-off line behind

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the flowmeter that returns the fuel being bunkered to the suction side of the
barge bunker supply pump. This means that the fuel is being passed through the
flowmeter twice. The by-pass recirculation line may be only small in diameter
but over the bunkering period it can have a big impact on the quantity of received
fuel oil.

Check for any suspicious lines behind the barges flowmeter. Use the ships
flowmeter (if fitted) as a cross check and have a doubt on any major differences.
Ask to see the bunker barges flowmeter calibration certificate and check that the
flowmeter seal is intact. Refer to the bunker barge cargo piping diagram to assist
with the checking of any suspicious lines.

3) Cappuccino effect
Air is sometimes intentionally provided by the supplier during the pumping of
bunkers to the ship which aerates the fuel being delivered.

The flowmeter of common standard type does not measure the quantity of fuel
being delivered but the volume of throughput. If the fuel has been aerated, this
volume is made up of fuel and small air bubbles. This practice is commonly
referred to as cappuccino effect.

In order to combat the cappuccino effect in bunkering the following checks


should be carried out in addition to the ships bunkering procedure before
bunkering:

Get on board the bunker barge and verify the quantity of fuel onboard
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the barge before commencing bunkering by sounding the barges fuel


oil cargo tanks and using corresponding sounding tables;

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If possible, obtain draft readings of the bunker barge before pumping begins;
In case of having any doubt about the air bubbles you should get on board
the bunker barge and ask the supplier to show the line blowing
arrangement, and check the suspicious air line connections; and
Rough method of calculating the bunker quantity of bunker barge is to
calculate the draft difference of bunker barge between the starting and
completion of bunkering by referring to draft calculation table of bunker
barge, and to convert the quantity into tonnage by using tables.

4) Ships list and trim


Sometimes the barge may have a list or trim and no correction tables are
available. It is possible that in these circumstances the trim or list is to the
advantage of the supplier and the amount of fuel on board is more than that of
actual quantity. The difference between the apparent and actual fuel oil on board
can be considerable, especially if the tanks have a large free surface area.

If no trim correction tables are available for inspection before taking fuel oil
delivery or gauging tanks, it may be prudent to make a written comment stating
that no trim correction tables were sighted. This can be countersigned by the
master of bunker barge.

5) Temperature of bunker
The temperature of fuel oil is important as it affects the volume of bunker
delivered. If the declared temperature is lower than the actual temperature, this
means that less fuel oil is actually delivered. For the supplier, gaining a few
degrees Centigrade means gaining a few tonnes of bunkers.

Counter measures check and record the temperature during the initial gauging

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and periodically until completion of bunkering.

6) Calibration tables
Copied tables could be used for barge. At first sight these appear to be in order
but have, in fact, been modified to the advantage of the supplier. Inserted pages,
photocopies, corrections, different print and paper types are all indications of
tampering.

Counter measures check if the tables are original or a copy issue a letter of
protest if in doubt.

7) Water contents
If 1,000 tonnes of fuel is bunkered and it contains 1% of water, it is effectively
just 990 tonnes of fuel. Water may be mixed with the fuel oil just before the
bunkering takes place.

Another trick is not using water-detecting paste on the sounding tape.


Water-detecting paste can be used for distillate fuel deliveries but does not work
with black residual fuels as you cannot see the colour change. Sometimes an
incorrect alternative paste is used, like chrome cleaner, which looks and smells
the same, but does not change colour on contact with water.

Excessive water represents a triple loss. Firstly, there is the loss of specific
energy in the fuel which will affect the fuel consumption. Secondly, there is the
cost of disposing of the water removed by the treatment system. Such water is
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unlikely to pass through a 15 ppm oily water separator, so it has to be retained


for disposal later, with a cost to the ship operator. Thirdly, water will damage fuel

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injection equipment, causing corrosion and failure of exhaust valves and turbo
chargers.

Check using Water in Oil test. Issue a letter of protest if the percentage of
water content is more than stated on the bunker supply receipt.

There are other less sophisticated, underhand methods of reducing the real
quantity of fuel oil delivered. These include unofficial piping between the
storage tanks and other un-nominated tanks, such as cofferdams or void spaces.

6.2 Collecting Evidence

1) The importance of collecting evidence


The collecting evidence is vitally important so as to enable a shipowner to
defend or pursue bunker quantity or quality dispute claim. It is almost impossible
to gather the evidence lately.

A representative bunker sample is probably the most important single piece


of evidence in every claims in bunker quality dispute. However, sampling is
not sufficient evidence of itself, and all other routine process of the bunkering
operation should be recorded.

When it is suspected that sub-standard bunkers have been supplied to the ship,
the ship operator should immediately take steps to ensure that accurate records
are kept detailing which tanks have been supplied with the suspect fuel oil, and
arrangements should be made to obtain relevant evidences from the ship.

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If the evidence is not available at the time of occurrence, then a shipowner


has little chance of succeeding in a bunker dispute. Therefore, the shipowner
must have the chief engineer and relevant crew acknowledge the necessity of
collecting evidences and the procedures for collecting evidence.

2) In case of using suspicious bunker oil


It is general to use the supplied bunker oil before receiving the correct result
of fuel oil analysis. If the sub-standard fuel oil has been used before receiving
the result of fuel oil analysis and advices, the engine may be damaged. If the
engine is damaged caused by using off-specification bunker oil, every relevant
evidences should be collected. The master and chief engineer of the ship should
keep records in detail of every matters occurred during the use of fuel oils.

The sludges removed from the purifier should be kept for further analysis. Every
parts of damaged machinery should also be kept on board for further inspection
(do not clean or remove any material from the machinery).

In case of discovering any damaged part of machinery photographs should be


taken for everything. All engine troubles, burnt without specification or every
incident caused by the fuel oil having problems should be recorded in the Engine
room logbook and Deck logbook. Video evidence also can be made as best use in
case of having disputes.

3) Evidential documents for bunkering


(1) Oil record book (ORB)
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Shipowner, master and officers should keep in mind that in addition to statutory

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requirements concerning maintenance of an ORB, this record is a valuable means of


providing proof that the ship has complied with anti-pollution regulations.

All entries in the ORB must be made in ink. Writing in pencil in any log record
should be avoided, and all entries should be made at the time of the operation to
avoid mistakes.

The chief engineer is responsible for ensuring that the ORB is correctly
maintained. Although some companies may delegate this responsibility to the
second or first engineer, the responsibility still remains at the chief engineer.

The master, however, should regularly check the ORB to see that it is correctly
recorded. The master is required to sign the ORB after each page is completed
but a visual check before every port entry is recommended. This important
document, if not accurately completed, can lead to the ships master and/or chief
engineer being fined or detained.

It should be noted that all entries in the ORB must be wholly true and accurate.

(2) Bunker delivery receipt


The bunker delivery receipt should be kept on the ship and readily available for
inspection at all reasonable times. It should be retained for three years after the
fuel has been delivered.

The bunker delivery receipt is to be signed by the bunker barge master and
the chief engineer or master of the ship. It is normally stamped with the official
stamp of the ship and/or barge.

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The bunker delivery receipt should be completed using only figures of the
volume of the fuel oil loaded.

(3) Letters of protest


It is important that, in the event of having disputes in bunker quantity, the
master of the receiving ship issues a letter of protest as quickly as possible. Such
a letter of protest should include the following matters, but not limited to those:

Date and time of loading fuel oil;


Name of ship receiving the fuel oil;
Volume in shortage;
Grade of fuel oil loaded (or thought to have been loaded);
Percentage of shortage in relation to the order;
Name of bunker supplier;
Name of bunker barge or shore facility; and
Reference number of bunker delivery receipt.

It should be directed to the barge master or shore representative. The letter


of protest should also be signed, if possible by the barge master or shore
representative and properly stamped with the ship and barge official stamps.

(4) The protest against off-specification


The bunker oil of off-specification may invite serious damages to ships engine
and equipment, and finally leads to the loss of running time of ship.
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Therefore, the master of a ship, in case of receiving bunkers breached to the bunker
delivery contract, should note a protest against the bunker supplier or bunker broker.

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In the letter of protest what specification is deficient should be described in


detail, and in general the viscosity, specific gravity, pouring point, water contents,
sea water content, suitability, catalytic pin and etc. of the bunker are the object of
description.

6.3 Handling Bunker Claims

1) Determination on fuel quality


The ship should always take the sample of bunker collected at the ships
manifold and keep on board as the best evidence the bunkers supplied to the
ship. Whether this is the official sample or not, it should be sent for analysis
by a recognised fuel sampling and analysis service center as soon as possible.
Sometimes, onboard testing kit may be used although these are less accurate than
laboratory analysis.

If the bunker tanks to receive bunker were not empty at the time of bunkering, a
sample at manifold drip will not good evidence of the quality or grade of bunkers
in the ships tanks, as new bunkers will have been mixed with the old bunker.
Therefore, it is best practice to bunker only into empty tanks.

If there are no empty tanks onboard, both the bunkers onboard the ship and those
supplied to the ship should have been analysed and checked for compatibility by
a laboratory before the supply is made. Where they are not compatible, the fuels
should not be mixed and an alternative supply method should be sought.

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2) Procedures in case suspected sub-standard bunkers are loaded


Where the bunkers do not conform to the specification ordered or the ships
chief engineer is in doubt that the fuel may not be suitable for using in the ship,
then following steps should be implemented:
The claims procedure contained in the terms and conditions incorporated
into the bunker supply contract should be followed;
Recommendation should be acquired by a testing authority as to how the
fuel should be treated on the ship;
Advice should be sought from the engine manufacturer as to the likely
effect of burning the fuel upon the ships main engine;
Relevant underwriters should be notified of the claim and if the ships
engine has been damaged, hull underwriters also should be notified;
Additional sampling should be arranged. Samples should be taken
direct from the bunker tanks, ideally in sets of three at different
levels within the tank (top, middle and bottom);
Statements should be made by the master and the chief engineer;
Routine records concerning the bunker supply should be collected;
Matters relevant to the incident should be informed to all parties interested
(in particular, the actual supplier of bunker and the bunker broker); and
Steps should be taken to ascertain who actually owns the bunkers at the
time of arising disputes.

3) Decision to debunker
Where the bunkers supplied to ship do not conform to the specification ordered,
but may be used by the ship with little or no risk to the ship, the bunker supplier
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may deny the responsibility for all losses of expense and time of debunkering
operation.

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Therefore, shipowner and/or time charterer should consider following matters


when making decision whether, based on the information on hand, or not the ship
can use the bunkers supplied:
Whether there is a risk of damage and/or excessive wear to the ships machinery;
Whether the performance of ships engine might be inhibited; and
Whether the ship can heat the fuel to obtain the correct injection viscosity.
If the bunkers do not meet one of above factors, then the bunkers should be
debunkered.

6.4 Dispute in Bunkering

Sub-standard bunkers can cause major operational problems onboard a ship as


well as severe damage to its machinery and significant delay in ship operation.
There are different types of insurances that may be involved in bunker quality
and/or quantity disputes, but the relationship between them is not always clear.
Relevant insurances to the disputes caused by poor bunker quality/quantity are as
follows;

1) Hull and Machinery Insurance


Almost all shipowners have in place a policy which insures them against
damage to their ships hull and machinery. Sub-standard bunkers can cause
significant damage to the vessels engine and plant, and such damage will be
recoverable from hull and machinery insurance companies.

2) Damage to Hull Insurance


Charterers may insure damage-to-hull insurance (so called DTH insurance)
against their bunker responsibilities. Such policies commonly include the cover

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Ships Accident Prevention Manual

against the liabilities a charterer may face in respect of damage to the ship caused
by bunker fuel oil owned by the charterer together with any loss of time suffered
by the shipowner as a consequence.

3) Freight, Demurrage and Defence Insurance


In case of having a dispute in bunker quality and/or quantity, the Freight,
Demurrage and Defence (so called FD&D) clause of a P&I club will cover for
collection of evidence and the legal costs of prosecuting the claim against the
supplier, or time charterer purchaser.

Furthermore, where merited, a charterer will enjoy the support of the Freight,
Demurrage and Defence when defending a claim against the shipowner that the
bunkers were not fit and/or in making a claim against the bunker supplier under
the bunker supply contract.

When a minor damage to the ships hull and machinery are arisen, the Freight,
Demurrage and Defence clause also covers for legal costs which would normally
form part of a claim on the ships hull and machinery policy except that the
claims is below the amount of the policy deductible. Recently, the level of
such deductibles has increased, thus the importance of shipowners Freight,
Demurrage and Defence clause has increased.

Hull underwriters and bunker insurance underwriters may refuse, for whatever
reason, to pay a claim made by the shipowner or charterer. The Freight, Demurrage
and Defence covers extends to provide legal costs insurance in respect of such
Korea P&I Club

disputes.

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3 Guide to Handling Ship's Fuel Oil

The shipowners P&I club or charterers P&I club do not cover the liabilities
arisen directly out of the supply of sub-standard bunker. Moreover, a shipowner
and charterer may not recover from the P&I club those losses caused by the
supply such as the cost of de-bunkering and the purchase of a replacement fuel.
However, there may be consequential liabilities arisen out of the supply of off-
specification fuels which give rise to a claim on the ships P&I club.

For example, a main engine breakdown may cause delay in the delivery of price
sensitive cargoes causing the cargo consignees loss which they attempt to recover
from the carrier under the bill of lading or sea waybill. As another example,
the charterers and consignees may try to avoid paying contributions in General
Average declared as a result of the main engine because of an alleged breach of
the contract of affreightment.

Above two example would give rise to claims on the ships P&I club.

4) Disputes in bunker quantity


In general there is no available insurance to cover against the dispute in bunker
quantity.

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Ships Accident Prevention Manual

Reference
1. A Masters Guide to: Using Fuel Oil Onboard Ships, Charles Taylor & Co.
Limited, 2012.
2. Loss Prevention Guides, Bunker Claims Prevention, Anchorage Press, 2000.
3. Bunkering Procedure, SK Shipping Co., 2014.
4. Fraud in the Maritime Industry, SKULD, 2014.
5. Korea P&Is reports

Korea P&I Club

61
Brief Personal History of Author

Hwang, Youngsin
- Born in 1954 in Daegu, Korea
- Graduated from Korea Ocean & Maritime University(Marine Engineering Course)
in 1978
- Chief engineer of merchant marine in Sanko Line of Japan, 1988
- Chief engineer, super intendant in ship operation and engineering in Choyang Line
from 1990 to 1997
- Responsible technician in the Korea Institute of Geoscience and Mineral Resources
in 2008
- Professor of the Korea Institute of Maritime and Fisheries Technology from 2012
to 2015

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