BRITANNIA LOSS PREVENTION NOVEMBER 2024 ESSENTIAL PRACTICES AND CONSIDERATIONS FOR SHIPOWNERS AND OPERATORS Bunker quantity disputes pose a common challenge in the maritime industry, arising from disagreements between the supplier and the receiver regarding the amount of bunker fuel delivered. These disputes can lead to significant operational and financial consequences for shipowners and operators. MANAGING BUNKER QUANTITY DISPUTES THE MOST COMMON METHOD OF BUNKER DELIVERY FOR OCEANGOING SHIPS, INVOLVES DELIVERING FUEL VIA A BARGE FROM THE SUPPLIER’S STORAGE TO THE RECEIVING SHIP. While this method is widely used because of its flexibility and convenience, it is not without its pitfalls, including discrepancies in measurement. Receiving bunkers via shore pipeline or truck also presents unique challenges. Shore pipelines offer a more direct and potentially quicker method of delivery, but they come with certain operational risks. In the event of a quantity dispute, the ship’s crew may find it more difficult to conduct or participate in the investigation, as they are generally not granted access to observe shore tank measurements. The ship’s interests must then rely on the appointed surveyor, during such occurrence. To address this, some terminals that frequently engage in bunkering have opted to install flowmeters which are used as the primary reference for transfer measurements. DELIVERY METHOD 2 | BRITANNIA LOSS PREVENTION | GUIDANCE Truck deliveries, often utilised in smaller ports or for specific fuel types, require careful oversight to ensure the fuel’s quantity and quality meet the necessary standards. This article will primarily focus on delivery by barge, although many concepts will be equally useful when applied to other methods. ESTABLISHING A RELATIONSHIP WITH REPUTABLE SUPPLIERS IS OF BOTH OPERATIONAL AND COMMERCIAL IMPORTANCE. Reliable suppliers are more likely to adhere to agreed-upon standards and are easier to work with in resolving any disputes. Always conduct due diligence by researching potential suppliers’ track records, this may include any concerns regarding the terminal that they are operating from and seeking recommendations from industry peers. Additionally, be wary of any restrictive clauses that may place shipowners at an unfair disadvantage. KNOWING THE SUPPLIERS RESOLVING DISPUTES TYPICALLY INVOLVES VERIFYING QUANTITIES THROUGH RE-MEASUREMENT, CROSS-CHECKING DOCUMENTATION, AND SOMETIMES ENGAGING THIRD-PARTY INSPECTORS/EXPERTS. The stakes are high, as small differences in measured quantities may lead to significant financial impact. To mitigate these risks, industry practices include precise measurement verification techniques, thorough documentation, and the progressive utilisation of technologies like Mass Flow Meters for more accurate readings. OPERATIONAL CONSIDERATIONS Before initiating the bunkering operation, owners/ships should verify and reasonably ensure compliance with the following: QUANTITY DISPUTES • Confirmation of bunker details: The ship should confirm with the owner’s office and/or charterer the specific grade and quantity of bunkers to be received, including the identity of the bunker supplier/barge (by IMO identification). • Bunker plan: The ship should develop a thorough bunker plan, which includes details such as the bunker tank(s) to be used (always aim to load into empty bunker tanks), the sequence for filling the tanks, allocations for different grades of fuel, transfer rates, procedur