Business

Skuld: Bunker suppliers upset balanced BIMCO bunker terms

BIMCO Bunker Terms 2018 offer a fair balance between the bunker supplier and bunker purchaser, it advises.

Published

7 years ago

May 13, 2019

Admin

Marine insurance provider Skuld on Thursday (9 May) issued a notice promoting the BIMCO Bunker Terms 2018:

As many members are aware, whether they purchase bunkers as an owner or charterer of a vessel, sometimes the standard terms and conditions of the relevant bunker supplier can be slanted in favour of the bunker supplier.

Often they contain short time limits for making a claim, in the event the bunkers turn out to be not of the agreed quantity or quality. So where the purchaser of the bunkers finds out later that there is a problem with the fuel, often it is too late for him to bring a claim. Often the terms and conditions state that the sample produced by the bunker supplier is the binding sample as between the bunker supplier and the purchaser of the bunkers. This is different to the position adopted between the owners and charterers under a charterparty, where it is generally accepted that a sample of fuel taken by way of continuous drip sample taken at the ship's bunker manifold in accordance with the guidelines under MARPOL ANNEX VI is the representative fuel sample. The purchaser of the bunkers may find that he is not in a back to back position and has to test different samples for different contracts.

To address some of these issues, BIMCO put together a Committee to produce fair and harmonised standard terms and conditions. On the Committee were not just owners and charterers but also bunker suppliers including World Fuels, Peninsular and Dan Bunkering, and a representative of the IBIA, so the terms and conditions are widely accepted by the bunker industry. Attached you will find a sample copy of the BIMCO Bunker Terms 2018.

However, since the BIMCO Bunker Terms came about, we have seen examples where bunker terms appear to be the BIMCO bunker terms, when in fact the supplier has taken the BIMCO Bunker Terms as their base terms, left in the clauses which favour them, and removed the clauses which favour the bunker purchaser. Thereby, removing the fair balance which the BIMCO terms, when used as a whole, achieve.

Key BIMCO Standard Bunker Terms

Whilst this article is not designed to be a comprehensive review of the BIMCO Standard Bunker Terms, we take the opportunity to highlight a few key terms.

Clause 15
The main reason for the bunker industry giving approval to the BIMCO Bunker Terms, was the insertion of Clause 15 (b) which provides "Notwithstanding any other provision… the liability of either Party…shall… not exceed the invoice value of the Marine Fuels or USD 500,000, whichever is the higher figure…". So, effectively, the liability of the bunker supplier is capped. He will not be liable to the bunker purchaser for anything higher than either the value of the bunkers, or USD 500,000, whichever is the higher amount. One might argue that this is a valuable clause for the bunker supplier.

Clause 9
The trade off for the bunker supplier being allowed to cap his liability is Clause 9, which gives the purchaser of the bunkers much longer periods to give notice that he has a claim in relation to the fuel. Clause 9(a) states that in relation to a quantity dispute, a claim must be presented within 14 days. In relation to a quality dispute, clause 9(b)(i) states "If the Buyers do not notify the Sellers of any such claim within thirty (30) days of the date of delivery". So the purchaser of the fuel has 30 days to give notice of a claim, a much longer time limit than is found in a lot of terms and conditions.

Clause 4
Another key clause, which is beneficial to the bunker purchaser is Clause 4, which states "During bunkering a primary sample shall be drawn at a point… closest to the Vessel's bunker manifold and otherwise in accordance with the procedures set out in IMO Resolution MEPC.182(59) Guidelines for the Sampling of Fuel Oil for Determination of Compliance with MARPOL 73/78 Annex VI". A sample taken at the ship's manifold will therefore act as the representative sample as between the purchaser and the seller of the bunkers. This means that the buyer of the fuel no longer will find himself out of a back to back position as to what is the representative sample.

Whilst parties are always free to negotiate the terms they wish, the BIMCO Bunker Terms 2018, in their unamended form, do give a fair balance between bunker supplier and bunker purchaser.

Source: Skuld
Published: 13 May, 2019

Winding up

Singapore: Notice of intended dividend issued for Xihe Holdings’ subsidiaries

Creditors will need to produce proofs of debt to liquidators of Da Xin Tankers and Nan Chiau Maritime by 5 August, according to Government Gazette notice.

Published

3 hours ago

July 23, 2026

Admin

Two notices to declare the intended dividend of Xihe Holdings’ subsidiaries to their creditors have been posted on the Government Gazette on Wednesday (22 July).

The subsidiaries are Da Xin Tankers Pte Ltd and Nan Chiau Maritime Pte Ltd.

The following are the details of the notices of intended dividend:

Name of Company : Da Xin Tankers (Pte) Ltd (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 198400895W
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Name of Company : Nan Chiau Maritime (Pte.) Ltd. (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No.: 200814296Z
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Photo credit: steve pb from Pixabay
Published: 23 July, 2026

Biofuel

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

Company says it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply.

Published

3 hours ago

July 23, 2026

Admin

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

South Korean petroleum and refining company S-Oil on Wednesday (22 July) said it has started supplying B30 very low sulphur fuel oil (VLSFO), as the company seeks to support shipping’s decarbonisation efforts and growing demand for lower-carbon bunker fuels.

The company said its B30 VLSFO contains 30% sustainable biofuel blended with conventional VLSFO and can be used without requiring modifications to existing vessels, enabling shipowners to comply more readily with emissions regulations from the International Maritime Organization (IMO) and the European Union (EU).

S-Oil said it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply. The system combines VLSFO produced at its Onsan refinery with biofuel production facilities and storage infrastructure in the Ulsan region, allowing the entire process to be carried out within a single logistics hub.

According to the company, the integrated supply chain reduces transportation requirements during production while improving supply efficiency and reliability.

S-Oil also highlighted Ulsan Port as a strategic location for marine biofuel supply, noting the port has strong demand for bio-bunker fuels, particularly from car carriers, enabling prompt and stable deliveries to key customers.

An S-Oil official stated: “In the bio-marine fuel market, not only product quality but also securing a stable supply of raw materials and an efficient supply system are important competitive advantages.

“Based on our existing bunkering business capabilities and the excellent supply infrastructure in the Onsan area, we plan to supply stable and competitive low-carbon fuel.”

Photo credit: S-Oil
Published: 23 July, 2026

Decarbonisation

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

Both will explore solutions spanning emissions measurement and verification, a digital Book-and-Claim framework, and a joint maritime-land inset token package.

Published

3 hours ago

July 23, 2026

Admin

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

PSA International (PSA) on Monday (20 July) said it has signed a Memorandum of Understanding (MoU) with Yang Ming Marine Transport Corporation (Yang Ming) to jointly accelerate the adoption of low-carbon solutions across the maritime value chain.

Beyond emissions measurement and verification, the collaboration will focus on a digital Book-and-Claim framework and a joint maritime-land based inset token package.

“This synergy provides cargo stakeholders with a transparent and accountable sea-land pathway to achieve their decarbonisation targets,” PSA said on its website.

Yang Ming launched the green transport service, EcoSea+. This initiative integrates Yang Ming’s low-carbon navigation capabilities to empower customers with a flexible and transparent strategy to effectively reduce their Scope 3 transportation emissions. By joining forces with PSA, Yang Ming is able to expand the impact of these sustainability actions beyond the ocean.

Building on its position as a global port operator, PSA advances its Node to Network strategy through integrated port and supply chain capabilities that enable a green network of terminal and landside operations to reduce end-to-end supply chain emissions.

The agreement was officially signed by Mr Ivan Chiang, Chief Logistics Officer & Senior Vice President of Yang Ming, and Mr Eddy Ng, Group Head of Operations, Technology and Sustainability of PSA International.

Mr Ong Kim Pong, PSA International Group CEO, said, “As responsible stewards of tomorrow, PSA is committed to delivering sustainable impact across the global port and supply chain ecosystem.

“Tackling the challenges arising from climate change will require the collective efforts of all players in the maritime supply chain sector. We are excited to partner Yang Ming on the decarbonisation of global supply chains and support the transition towards a more sustainable global economy.”

Photo credit: PSA International
Published: 23 July, 2026