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.

Published

4 years ago

February 7, 2022

Admin

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

Customs Fines

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

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.
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).

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

Mass Flowmeter

Hong Kong backs MFM adoption with voluntary scheme to boost bunkering competitiveness

Hong Kong’s Marine Department launched the Quality Bunker Operator Scheme to encourage bunker operators to install and use mass flow meter systems on their bunker vessels.

Published

3 hours ago

June 4, 2026

Admin

Hong Kong’s Marine Department (MD) on Wednesday (3 June) launched the Quality Bunker Operator Scheme to encourage bunker operators to install and use mass flow meter systems (MFM systems) on their bunker vessels.

MD said the scheme aims to enhance Hong Kong’s bunkering service quality and the competitiveness of Hong Kong ports, thereby further consolidating Hong Kong’s position as an international maritime centre and a major bunkering port.

Under the Scheme, bunker operators of traditional maritime fuel and biodiesel that install and use MFM systems on their bunker vessels, with the MFM systems inspected and certified by an accredited body in accordance with the International Organization for Standardization’s ISO 22192 Standard or equivalent requirements, can apply to the MD for inclusion in the scheme’s “List of Quality Bunker Vessels”, provided they meet the relevant technical and operational requirements.

Details of the bunker vessels successfully included in the List will be published on a dedicated page on the MD’s website for reference by shipping companies and relevant stakeholders.

Participation in the Scheme is voluntary. In addition to receiving recognition from the MD, participating bunker operators will benefit from enhanced corporate image and competitiveness through the adoption of MFM systems, thereby boosting customers’ confidence and helping to create new business opportunities.

A spokesman for the MD, said: “As an international maritime centre supported by our country, Hong Kong has a strategic location adjacent to major international fairways. Coupled with years of development in marine fuel bunkering, Hong Kong possesses rich experience and talent in the field. For many years, Hong Kong has consistently ranked as the seventh-largest bunkering port globally, the second-largest in our country, and the largest in the Greater Bay Area, providing reliable and competitive fuel bunkering services to ocean-going vessels from around the world.

“As the international shipping industry has an increasing demand for accuracy and transparency in bunkering services, service quality and measurement precision in bunkering operations have become important indicators of a bunkering port’s competitiveness. The Scheme will enhance bunkering accuracy and transparency, further enhancing the quality of Hong Kong’s bunkering services.

The spokesman added that comprehensive port services are one of Hong Kong’s key advantages as an international maritime centre.

“We will also mandate the use of MFM systems on all methanol bunker vessels this year to ensure that Hong Kong continues to provide high-quality bunkering services in the era of green maritime fuels.”

Note: The application form for the Scheme can be found on the MD’s website. Interested bunker operators can download the application form from the website or contact the MD’s Green Maritime Fuel Team via email ([email protected]) for details.

Photo credit: Manifold Times
Published: 4 June, 2026

Alternative Fuels

MPA and MSC ink MoU to support adoption of alternative bunker fuels

MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency.

Published

3 hours ago

June 4, 2026

Admin

MPA and MSC ink MoU to support adoption of alternative bunker fuels

The Maritime and Port Authority of Singapore (MPA) on Wednesday (3 June) said it signed a Memorandum of Understanding (MoU) with MSC Mediterranean Shipping Company to strengthen collaboration in maritime decarbonisation, digitalisation, innovation, and manpower development.

The MoU was signed on 25 May 2026 by Mr Ang Wee Keong, Chief Executive of MPA, and Mr Soren Toft, Chief Executive Officer of MSC.

The MoU underscores the shared commitment of MPA and MSC to foster a sustainable, digital, and future-ready maritime sector, while enhancing MSC’s operational and business activities in Singapore. This year also marks the 30th anniversary of MSC establishing its Asia Regional Office and local office in Singapore.

Under the MoU, MPA and MSC will explore new routes and services to strengthen connectivity, support the adoption of alternative marine fuels such as bio-LNG, and advance technologies to improve vessel energy efficiency and operational performance.

MPA and MSC will also collaborate on maritime digitalisation initiatives to improve operational efficiency, including streamlining vessel arrivals and port operations.

On manpower development, MSC will support internship and scholarship opportunities through Singapore Maritime Foundation’s Maritime Outreach Network (MaritimeONE) platform, an industry-led tripartite partnership comprising industry, government and institutes of higher learning that aims to raise awareness of the maritime industry and attract quality talent into the maritime sector.

Mr Ang Wee Keong, Chief Executive of MPA, said: “This partnership reflects the strong collaboration between MPA and MSC in driving sustainability and digitalisation in the maritime sector. By working together on decarbonisation, operational efficiency and talent development, we aim to strengthen Maritime Singapore’s position as a trusted and future-ready global maritime hub.”

Mr Soren Toft, Chief Executive Officer of MSC, said: “Singapore is a strategically important hub for MSC and a key gateway to the broader Asia region. As we mark 30 years in Singapore, this MOU reinforces our long-term commitment to strengthening our presence here. MSC and Singapore are closely aligned on the priorities shaping the future of global shipping, and we look forward to deepening this partnership to drive the continued growth and resilience of the maritime industry.”

Photo credit: Maritime and Port Authority of Singapore
Published: 4 June, 2026

Emissions reporting

StormGeo and OceanScore link emissions data, compliance workflows

Cooperation combines StormGeo’s expertise in operational vessel and emissions data with OceanScore’s expertise in emissions compliance workflows across EU ETS, FuelEU Maritime and UK ETS requirements.

Published

3 hours ago

June 4, 2026

Admin

StormGeo and OceanScore link emissions data, compliance workflows

Weather intelligence and decision support solutions provider StormGeo and Hamburg-based technology platform OceanScore on Wednesday (3 June) said they have deepened their ongoing cooperation through the signing of a collaboration agreement during Posidonia 2026 in Athens on 2 June.

The cooperation combines StormGeo’s expertise in operational vessel and emissions data with OceanScore’s expertise in emissions compliance workflows across EU ETS, FuelEU Maritime and upcoming UK ETS requirements.

Together, the companies aim to help shipping companies seamlessly navigate increasing regulatory complexity more efficiently — from emissions reporting and data validation to compliance exposure management, pooling and financial settlement.

As emissions regulation becomes an increasingly important part of commercial shipping operations, the need for reliable operational data and streamlined compliance processes continues to grow. The cooperation between StormGeo and OceanScore is designed to support shipping companies with more connected, transparent and actionable processes across operational and commercial teams.

“From the outside, companies like StormGeo and OceanScore may sometimes be perceived as competitors because both operate around emissions and compliance workflows,” said Albrecht Grell, Managing Director at OceanScore.

“But in reality, the industry increasingly needs both perspectives working together: trusted operational emissions data on one side and commercial compliance execution on the other. Our cooperation reflects that shipping companies are no longer looking for isolated solutions — they need connected processes, automated across different systems and reliable decision-making throughout the full compliance chain.”

By connecting validated operational emissions data with commercial compliance management, the cooperation supports workflows across:

emissions reporting and validation
compliance management across EU ETS, FuelEU Maritime and upcoming UK ETS requirements
exposure visibility and cost transparency
pooling, settlement and financial processes

The cooperation also aims to improve commercial transparency and coordination across operational and commercial stakeholders.

“StormGeo plays a central role in helping shipping companies turn operational vessel and emissions data into trusted, decision-ready insights,” said Espen Martinsen, Chief Commercial Officer at StormGeo.

“As emissions regulations become more complex, this data is essential for transparent and efficient compliance management. By working with OceanScore, we can help customers connect StormGeo’s validated operational data with commercial compliance processes, creating a more integrated and practical approach to emissions management.”

The signing ceremony took place at the StormGeo booth during Posidonia 2026 in Athens and was attended by representatives from both companies.

Both companies expect the cooperation to continue evolving alongside upcoming regulatory developments, including FuelEU Maritime, EU ETS, the upcoming UK ETS and future emissions-related frameworks affecting global shipping.

Photo credit: StormGeo
Published: 4 June, 2026