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Analysis

Skuld provides ‘best practise’ for bunker sample storage

Bunker samples provide vital evidence to support claims against suppliers and more, says insurer.

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The following is an article written by marine insurance provider Skuld on recommended practises for the storage of bunker fuel samples:

Introduction
The quality of bunkers is very important for a ship to ensure safe operation of the main engine, and to comply with MARPOL Annex VI on stricter sulphur content regulations. Bad bunkers are detrimental to engines, and can cause disputes between owner and charterers. It can also lead to Port State Control detentions and huge fines by Authorities.

Disputes as to the quality of bunkers will arise between owners and charterers particularly under time charters. Bunker suppliers and intermediaries (e.g. such as bunker brokers) may also be involved.

Claims for off-spec bunkers can be complicated and can give rise to significant legal liabilities involving damage to the engines, as well as claims for loss of use of the vessel while it is being repaired. Off-spec bunker claims also invariably require instructing experts and lawyers, resulting in significant costs being incurred.

The bunker samples provide vital evidence to support claims against suppliers and to provide protection when facing Port State Control. It is important for the master to retain the bunker samples onboard to determine the quality specification and to demonstrate compliance with Annex VI bunker sulphur limits.

Standard and requirement
MARPOL Annex VI requires representative bunker samples to be taken and retained on board. Resolution MEPC.182(59) "2009 Guidelines for the sampling of fuel oil for determination of compliance with the revised MARPOL Annex VI" provide the details of the sampling, storage and documentation requirements.

Retained sample storage

  • The retained sample should be kept in a safe storage location, outside the ship's accommodation, where personnel would not be exposed to vapours which may be released from the sample. Care should be exercised when entering a sample storage location.
  • The retained sample should be stored in a sheltered location where it will not be subject to elevated temperatures, preferably at a cool/ambient temperature, and where it will not be exposed to direct sunlight.
  • Pursuant to regulation 18(6) of Annex VI of MARPOL 73/78, the retained sample should be retained under the ship's control until the fuel oil is substantially consumed, but in any case, for a period of not less than 12 months from the time of delivery.
  • The ship's master should develop and maintain a system to keep track of the retained samples.

The DOC holder of the ship shall establish a sampling procedure in their Shipboard Safety Management System based on sound bunkering principles and MARPOL Annex VI resolution MEPC. 182 (59) as well as Industry Standards (ISO 13739), which covers the method of taking the sample, location and witnessing.

Location of storage
It is important to store the samples in a dry/cool place to preserve the labels and avoid vapour loss. Typically, a suitable storage location may be the steering flat, but the best practice is to store the bunker samples in the paint locker as the paint stores are protected by a fixed sprinkler system.

The samples should be kept in a steel cupboard. Some providers sell storage cabinets for MARPOL samples, and commercial samples can also be stored there.

Smoking, or the carriage of smoking materials in the storage room are prohibited. Special attention must be paid to the condition of the flame proof electrical fittings. Care should be exercised when entering a sample storage location.

Period of retained on board
Commercial samples should be retained for evidential purpose for a period of six months after completing consumption of the supply as by then you should know if you have any claims or not.

MARPOL samples must be retained on onboard until the fuel is substantially consumed, but in any event for a period of not less than 12 moths from the time of delivery.
Owners may check with the established testing companies who usually provide in their agreements that they will retain the remains of samples tested for around three months.

Sample label and log
IMO Resolution MEPC 182 (59) requires sample bottles to have a tamper proof security seal with a unique means of identification and a label containing following information:

  1. location at which, and the method by which, the sample was drawn;
  2. date of commencement of delivery;
  3. name of bunker tanker/bunker installation;
  4. name and IMO number of the receiving ship;
  5. signatures and names of the supplier's representative and the ship's representative;
  6. details of seal identification; and
  7. bunker grade.

A Bunker Fuel Sample Log Book to record sample details along with full instructions on sampling should be maintained by the ship. The log book enables the master to maintain a simple and effective tracking system for fuel oil samples held onboard.

All samples in storage, with date of bunkering, source of sample (taken by crew or supplier), seal number and when the time comes, date/place of disposal etc., should be recorded in the Bunker Fuel Sample Log Book.

Disposal and transfer of bunker samples
The expired samples retained onboard may need to be disposed regularly. The disposal of samples and samples containers should be conducted in compliance with MARPOL requirement and local environmental regulations.

The samples are normally disposed either at shore facilities by a sludge collection party or poured back into the fuel tank by crew. Please be reminded that the used empty plastic bottles of fuel samples should be cleaned before disposal. The disposal date should be indicated in the sample log book, and local regulations may require recording of method of disposal.

If a sample is to be delivered to a shore laboratory or Port State Control for analysis, it is important to secure a record of the sample custody transfer. The transfer should be recorded in the sample log with the BDN, with specific reference to:

  • the sample label details and seal number;
  • the port, date and time of handover of the sample;
  • the identity of the person to whom the sample was handed, together with the name, signature and authority stamp as appropriate;
  • contact details of those who will hold the sample.

Source: SKULD
Publication date: 4 June, 2018

 

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Research

Sea Cargo Charter report demonstrates shipping’s shortfall against IMO climate goals

2024 report highlights the gap between current emissions and the IMO’s revised strategy for net-zero emissions by 2050.

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Sea Cargo Charter 2024 report

The shipping industry must take urgent action to meet ambitious new climate targets set by the International Maritime Organization (IMO), according to a new report released on Thursday (13 June) from the Sea Cargo Charter (SCC), a global transparency initiative developed by the Global Maritime Forum.

New data from the SCC, a global framework representing 20% of global bulk cargo transport, reveals the sector fell short of minimum international climate goals set by the IMO by an average of 17% in 2023, equivalent to 165 million metric tonnes of CO2e.

When considering ‘striving’ goals set by the IMO, signatories are on average 22% misaligned, which represents a shortfall of 204 million metric tonnes of CO2e in 2023.

Currently, dry bulk, general cargo, and tankers account for around 400 million tonnes of CO2 emissions. With global trade predicted to quadruple by 2050, emissions will skyrocket without urgent action.

Reporting has also been expanded to include “well-to-wake” emissions, which measure emissions from the extraction of oil to its end use, providing a more comprehensive picture of environmental impact and pushing the industry towards faster decarbonisation.

The 2024 report highlights the gap between current emissions and the IMO’s revised strategy for net-zero emissions by 2050. The report shows the importance of commercial and operational decisions on the vessels’ use (such as, instructed speed, cargo and routing optimisation, laden/ballast ratio), innovation and cooperation within the industry to be able to take action in this transition.

Other identified barriers to cutting emissions are geopolitical disruptions, limited alternative marine fuel options for long voyages, and a lack of infrastructure to support new technologies.

The 2024 Annual Disclosure Report was produced by the Global Maritime Forum, which performs secretariat services for the Sea Cargo Charter with expert support provided by UMAS and the Smart Freight Centre.

 

Photo credit: Sea Cargo Charter
Published: 14 June 2024

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Ammonia

Expert discusses technical considerations of using ammonia as marine fuel

Ammonia as bunker fuel poses significant safety challenges due to its toxicity and flammability, says ABS Regional Business Development Manager Muammer Akturk.

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Technical considerations of ammonia as marine fuel

Muammer Akturk, ABS Regional Business Development Manager, on Monday (10 June) published an article on technical considerations of using ammonia as a marine fuel in his Alternative Marine Fuels Newsletter.

The article dives into the use of ammonia as a marine fuel, focusing on the safety and technical considerations necessary for its implementation.

Ammonia is recognised for its potential as a zero-carbon fuel, making it an attractive option for reducing greenhouse gas emissions in the shipping industry. However, it poses significant safety challenges due to its toxicity and flammability.

Key points discussed include:

  1. Safety Measures: The importance of stringent design and operational safety measures to prevent ammonia releases and mitigate risks during both normal and emergency conditions is emphasized. This includes the need for gas dispersion analyses and the use of safety systems like gas detectors and alarms
  2. Regulatory Framework: The article reviews the latest regulations and guidelines developed to ensure the safe use of ammonia as a marine fuel. This includes the IACS Unified Requirement H1, which provides a framework for controlling ammonia releases on vessels
  3. Engineering Considerations: Technical aspects such as fuel storage, handling systems, and the role of risk assessments in identifying potential hazards and implementing preventive measures are detailed
  4. Human Factors: The article also considers the human factors approach to safety, emphasizing training and the importance of designing systems that account for human errorOverall, the article aims to provide a comprehensive overview of the challenges and solutions associated with using ammonia as a marine fuel, highlighting the importance of safety and regulatory compliance in its adoption.

Editor’s note: The full article can be found at the link here.

 

Published: 13 June 2024

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Analysis

JLC China Bunker Market Monthly Report (March 2024)

China’s bonded bunker fuel sales grew in March, as the shipping industry recovered gradually and sellers actively boosted sales on the back of ample supply and high inventories.

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JLC Bonded bunker fuel sales in Zhoushan (Mar 2024)

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for March 2024 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

China’s bonded bunker fuel sales surge in March

China’s bonded bunker fuel sales grew in March, as the shipping industry recovered gradually and sellers actively boosted sales on the back of ample supply and high inventories. Domestic LSFO prices were lower than those in Singapore and other neighboring ports, incentivizing shipowners or operators to refuel their vessels in China, with bunkering volume in Shanghai and Zhoushan rising considerably.

The country sold about 1.82 million mt of bonded bunker fuel in the month, with the daily sales up 13.59% month on month to 58,658 mt, JLC’s data shows.

Sales by Chimbusco, Sinopec (Zhoushan) and China ChangJiang Bunker (Sinopec) came in at 540,000 mt, 630,000 mt and 30,000 mt in March, while those by suppliers with regional bunkering licenses settled at 558,400 mt. At the same time, SinoBunker sold about 60,000 mt of bonded bunker fuel, the data indicates.

China’s bonded bunker fuel exports rise in first two months

China’s bonded bunker fuel exports rose in the first two months of this year, underpinned by fresh quotas and larger production.

The country exported a combination of 3.02 million mt of bonded bunker fuel in January-February, growing by 3.13% from the same months in 2023, JLC estimated, with reference to data from the General Administration of Customs of the PRC (GACC).

Heavy bunker fuel exports totaled about 2.85 million mt in the two months, accounting for 94.13% of the total, while light bunker fuel exports were 177,500 mt, accounting for 5.87%.

The increase in the exports mainly came as China released this year’s first batch of quotas on LSFO exports at the end of 2023. Though refiners’ LSFO production margins were relatively poor, they ramped up their production amid new quotas, which buoyed the exports. China’s LSFO output totaled 2.57 million mt in January-February, with the daily output gaining 2.69% year on year to 42,850 mt, JLC’s data shows.

In January alone, China’s bonded bunker fuel exports settled at 1.78 million mt, jumping by 11.93% month on month and 34.71% year on year.

However, the exports plunged to 1.25 million mt in February, down by 29.99% month on month and 22.75% year on year. Bunkering business at Chinese ports was halted during the Chinese New Year holiday, and customs’ clearing procedure for export was also affected by the holiday. In addition, the operation of many ports was hit hard by heavy snow and freezing rains, adding to the downward pressure on the exports.

 

JLC China bunker exports by region 2023 2024

 

JLC China major blending producers' bunker supply (Mar 2024)

Domestic-trade bunker fuel demand rises in March

Domestic-trade heavy bunker fuel demand recovered mildly in March, as the shipping industry rebounded after the Chinese New Year holiday. However, the demand growth was still limited as some shipowners still suspended services and the market was dominated by wait-and-see sentiment amid high prices.

Domestic-trade heavy bunker fuel demand was estimated at 430,000 mt in the month, a gain of 70,000 mt or 19.44% from a month earlier, JLC’s data shows.

Meanwhile, domestic-trade light bunker fuel demand was estimated at about 140,000 mt, a gain of 20,000 mt or 16.67% from a month earlier, the data indicates.

Bunker Fuel Supply

China’s bonded bunker fuel imports soar in Jan-Feb

China’s bonded bunker fuel imports soared in January-February 2024, due to a low base a year earlier.

The country recorded 581,900 mt of bonded bunker fuel imports in the two months, a surge of 27.36% year on year, with 359,200 mt in January and 222,700 mt in February, JLC estimated, with reference to data from the GACC.

China’s bonded bunker fuel imports dived to a record low in January-February 2023, as bunkering demand had not fully recovered from the epidemic, also because of high freight rates and ample domestic supply. The imports totaled only 456,900 mt in the first two months of 2023, tumbling by 48.01% year on year.

On the other hand, Chinese refiners boosted LSFO production in January-February 2024, limiting the import growth. These refiners produced about 2.57 million mt of LSFO in the two months, with the daily output climbing by 2.69% year on year to 42,850 mt, JLC’s data shows.

Russia became the largest bonded bunker fuel supplier in the first two months of this year, exporting 276,800 mt to China, accounting for 47.57% of the latter’s total imports. Malaysia ranked second with 186,800 mt, accounting for 32.10%, followed by South Korea with 95,800 mt, accounting for 16.46%. Japan climbed to the fourth place with 21,500 mt, occupying 3.69%, while Singapore slipped to the fifth place with only 1,000 mt, making up 0.17%.

In China’s bonded bunker fuel market, only HSFO and MGO are still mainly imported, while LSFO is rarely imported as its import efficiency is relatively low amid steep freight rates.

JLC Bonded bunker fuel imports by source Jan Feb 2024

Domestic-trade bunker fuel supply increases in March

Domestic-trade heavy bunker fuel supply improved in March, as availability of some blendstocks (such as low-sulfur residual oil and shale oil) increased.

Chinese blenders supplied about 460,000 mt of domestic-trade heavy bunker fuel in the month, a rise of 60,000 mt or 15% from February, JLC’s data shows.

Similarly, domestic-trade MGO supply rose to 160,000 mt in March, up 30,000 mt or 23.08% month on month, the data shows. Refineries’ enthusiasm for MGO production improved in March, as domestic MGO prices moved up along with domestic oil products.

JLC Arrival of imported fuel oil cargoes

 

JLC China main oil blending feedstock prices

JLC China domestic trading 180 cSt bunker fuel price 2023 2024

JLC China bunker blending profit by region 2023 2024

Editor
Yvette Luo
+86-020-38834382
[email protected]

Sales (Beijing)
Tony Tang
+86-10-84428863
[email protected]

Sales (Singapore)
Ginny Teo
+65-31571254
[email protected]
[email protected]

JLC Network Technology Co., Ltd is recognized as the leading information provider in China. We specialized in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity market. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertilizer and metal industry, etc.

JLC China Bunker Fuel Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market, demand, supply, margin, freight index, forecast and so on. The report provides full-scale & concise insight into China bunker oil market.

All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed without prior authorization from JLC.

Related: JLC China Bunker Fuel Market Monthly Report (February 2024)
RelatedJLC China Bunker Market Monthly Report (January 2024)

Note: China-based commodity market information provider JLC Technology has been providing Singapore bunkering publication Manifold Times China bunker volume data since 2020. Data from earlier periods are available here.

 

Photo credit: JLC Network Technology
Published: 11 April 2024

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