Bunker Claims Prevention

This useful guidebook by loss prevention expert Richard Bracken and bunker disputes specialist Mike Salthouse aims to tackle the bunker quality and quantity issue at source by giving those involved in the purchase of marine fuel oils a thorough understanding of the problems that may be encountered.

Chapter

1   Introduction

2   From crude oil to marine fuel

3   Fuel characteristics

4   The bunker delivery contract - bunkers supplied directly to owner or time charterer

5    Bunkers supplied under a time charterparty

6    Bunker loading procedures

7    Bunker sampling and analysis

8    Shipboard fuel treatment and consumption

9    Loss prevention and collecting evidence

10  Claims management

11  Bunker disputes - insurance aspects

12  Case studies

Appendices

I    FUELCON

II   Recommended bunker quality control clause for time charters

III  Draft letters

IV No-lien provisions

Index

This unique illustrated guide explains how to avoid the potentially enormous losses arising from loading marine fuel oils of unsuitable quality or insufficient quantity. It aims to assist ship's officers, operators and managers understand the pitfalls of the bunkering process and the steps which should be undertaken in the event of a dispute arising. The nature of marine fuel oil is explained along with associated purchasing contracts, loading and handling procedures, shipboard treatment methods, sampling and testing techniques and loss-prevention and insurance aspects. The guide includes a copy of the BIMCO Standard Bunker Contract, recommended clauses and a set of recommended standard letters.

The quality of marine fuel oil has deteriorated over recent years while the overall trend in price has been to increase. As a result, the number of disputes, both in relation to the quality and the quantity of the bunkers supplied, has increased. It is now essential for ship operators to be aware of the problems associated with the supply of marine fuel oils and to take steps to ensure both that their ships are provided with marine fuel oil suitable for use by their ships' plant and that the impact of any problems that do arise is minimized.

The consequences of not doing so can be very serious. A disabled ship in a congested waterway, in poor weather, carrying an expensive and environmentally sensitive cargo, is a situation which the shipping industry must make every effort to avoid.

The guide is designed to assist all those who come across bunker quality and quantity disputes in their working day. It is neither a legal textbook nor an engineer's manual, but it does aim to give a basic understanding of the technical and legal problems involved.

The guide takes each stage of the bunkering operation in order. Early chapters deal with the nature of marine fuel oil, its production and resulting characteristics. Consideration is then given to the contracts under which marine fuel oil may be ordered for use by a particular ship. Chapters on the loading and handling of fuel oil onboard the ship and the gathering of evidence are followed by a chapter on the handling of claims. This draws together all the elements of the bunker supply. Finally, the role of insurance in bunker quality and quantity disputes is considered.

At the end of the guide are appendices which include a number of specimen texts including the BIMCO Standard Bunker Contract and various recommended standard letters.

Throughout the book reference is made to the 'golden rule' for bunker quality and quantity disputes, namely that the success of any such dispute will depend upon the quality of evidence collected in support of the claim.