Connect with us

Business

Standard Club: Fines for excess bunker in Turkiye

The club has seen an increase in ‘excess bunker’ claims in Turkiye in recent months, causing delays to the member’s ships as well as the possibility of fines and criminal proceedings.

Admin

Published

on

Turkiye Flag

Laura Ronan and Yassmin Hamzeh of the Standard Club on Thursday (3 February) published an article on the P&I Club’s website updating readers of ‘excess bunker’ claims at Turkiye:

The club has seen an increase in ‘excess bunker’ claims in Turkiye in recent months, causing delays to the member’s ships as well as the possibility of fines and criminal proceedings.

According to the Turkish Customs Regulations, seagoing vessels (Turkish and foreign flagged) entering Turkish ports must report the quantity of bunkers on board the vessel (via Ship’s Stores Lists declarations) to the customs administration. If there is a difference between the declared figures and the quantity calculated by the local authorities, the customs authorities may impose customs fines on the owners and crew, or even initiate criminal proceedings. The difference in the quantity may be detected by routine controls of custom authorities, who may then carry out an onboard inspection.

Consequences

  1. Customs Fines

Customs fines for excess bunkers are divided into two categories and customs authorities can apply one of the following:

  1. a) Fine for irregularities: This is deemed appropriate for what they consider to be a simple error in declaration that cannot be interpreted as a fundamental declaration error.
  2. b) Fine for tax losses: This relates to the tax losses caused by undeclared excess bunkers. The value of the fines are calculated based on the quantity of excess bunkers, which may result in higher fines than those imposed for irregularities.

Shipowners may benefit from a deduction of ¼ of the total amount of the fine if the payment in respect of a fine for irregularities is made within one month and in respect of a fine for tax losses within 15 days following the service of written notification. Alternatively, owners have the right to object and appeal the decision within 15 days from the notification of the fine. If the initial appeal is rejected, further appeal may be available. The ship may be allowed to depart in the meantime if acceptable security is posted (see below).

  1. Criminal Proceedings

The Public Prosecutor may initiate criminal proceedings against the crew and/or confiscate the vessel if there is suspicion of smuggling as a result of a discrepancy in the bunker figures. They will likely also order the seizure of the excess bunkers.

If the Public Prosecutor’s office is involved, officials would proceed to take statements from the crew (generally the master and chief engineer).

In the best case scenario, the crew and the vessel would be free to sail after the statements are collated. Although less likely, it is also possible that the vessel could be arrested and a bank guarantee or cash may need to be provided to allow the vessel to sail (a club Letter of Undertaking will not be accepted by the customs authorities). The value of the bank guarantee could be up to the value of the vessel, as determined by the court-appointed experts. If a criminal case is not commenced, the bank guarantee or cash would be returned. If, however, criminal proceedings are concluded against the member, the vessel may be sold by state auction.

In theory, appealing against any customs fine and criminal decision is possible. However, in reality, customs fines are usually settled amicably with the customs authorities.

Club cover

Fines issued by Turkish customs authorities as a result of ‘excess bunkers’ may fall within the category of ’fines for smuggling and breach of customs regulation’ depending on how they are categorised by the customs authorities. This could be a key differentiator as fines concerning the misdeclarations may be covered as of right under r. 3.16.1, save in respect of smuggling of goods or cargo, which would be dealt with under r. 3.16.4, and thus would be discretionary.

Reimbursement of discretionary claims is subject to the approval of the club’s board. When deciding whether the discretionary claim would be recoverable under P&I cover, the board would consider, among other things, whether the member took all such steps as appear to the board to be reasonable to avoid the event giving rise to the fine. If the board is satisfied that that test is met, the amount which the member may recover from the club will be determined by the board. The board has wide discretion to determine the extent of any recovery.

Members are expected to act as a ’prudent uninsured’ in responding to fines / criminal proceedings issued by customs authorities as a result of excess bunkers (or for any other reason). Of course, the club is willing to assist members in the handling of the claim (to the extent that it can) and preparing the claim submission for the board’s consideration.

A distinction, however, should be noted between fines issued for smuggling which are covered by the club on discretionary basis (as per the above), and fines for breach of regulations concerning the declaration of goods or the documentation of cargo, which would be covered as of right under club’s rules.

For further information on discretionary smuggling fines please refer to the club’s article here.

Conclusion

Particular attention should be paid by the vessel and the crew when declaring the quantity of bunkers generally, and particularly in Turkiye. The quantity of bunkers on the vessel must be correctly declared and in accordance with the vessel’s records. Members are strongly recommended to measure the quantity of bunkers with soundings. The crew should regularly monitor whether the fuel tank indicators are working correctly, and should not feel under pressure to provide the calculation until they are certain of the figures. If any issues arise, members are strongly recommended to contact their usual P&I contact as the prompt involvement of lawyers and local correspondents may assist in resolving the problem without further serious consequences.

With thanks to Ismail Aydin of Aydin & Partners for their assistance in preparing the guidance above together with the club.

 

Source: Standard Club
Photo credit: Meriç Dağlı on Unsplash
Published: 7 February, 2022

Continue Reading

Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

Admin

Published

on

By

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

Continue Reading

Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Admin

Published

on

By

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

Continue Reading

Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

Admin

Published

on

By

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

Continue Reading
Advertisement

OUR INDUSTRY PARTNERS



Trending