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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.

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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

 

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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.

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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

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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.

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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

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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.

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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

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