Nigel Draf?n iii AN INTRODUCTION TO BUNKERING by Nigel Draf?n M.I.Mar.E.S.T. First Edition Foreword by Capt M Segar Director (Port) / Port Master Maritime and Port Authority of Singapore Published by Petrospot Limited England 2008 xi Contents Dedication ii Foreword v Preface vii About the author viii Acknowledgements ix Chapter 1 - What are Bunkers? 1 Types of fuel .................................................................................................................................3 Residual fuel .............................................................................................................................3 Distillate fuel .............................................................................................................................3 Daily consumption .........................................................................................................................4 The size of the bunker market .......................................................................................................4 Chapter 2 - Who buys and who sells? 7 Buyers ...........................................................................................................................................7 Sellers............................................................................................................................................8 Brokers ..........................................................................................................................................9 Chapter 3 - Who else takes part? 11 Port authorities ............................................................................................................................11 Customs ......................................................................................................................................11 Delivery companies .....................................................................................................................11 Agents .........................................................................................................................................11 Shipping jargon............................................................................................................................12 Ship types ....................................................................................................................................13 Chapter 4 - Prices 15 Bunker price reports ....................................................................................................................16 Hedging .......................................................................................................................................17 Posted prices ...............................................................................................................................17 Chapter 5 - How to buy, how to sell 19 What to buy? ..............................................................................................................................19 Where to buy? .............................................................................................................................19 Bunker ports ............................................................................................................................19 Port restrictions ........................................................................................................................20 Offshore deliveries ...................................................................................................................20 How much to buy? .......................................................................................................................20 Vessel restrictions ....................................................................................................................20 When to buy? ..............................................................................................................................21 Enquiry ........................................................................................................................................21 Offer .............................................................................................................................................22 xii AN INTRODUCTION TO BUNKERING Model offers .............................................................................................................................23 Delivery charges ..........................................................................................................................24 Negotiation ..................................................................................................................................25 Fixture..........................................................................................................................................25 Con?rmation ................................................................................................................................26 Post ?xture...................................................................................................................................26 Invoicing ......................................................................................................................................28 Payment ......................................................................................................................................28 Chapter 6 - Terms and Conditions 31 Principal clauses..........................................................................................................................31 Chapter 7 - Bunker properties 33 Units ............................................................................................................................................33 Manufacture.................................................................................................................................33 Elements......................................................................................................................................36 Contaminants ..............................................................................................................................36 Adulterants ..................................................................................................................................36 Properties for which we test ........................................................................................................37 Density .....................................................................................................................................37 Viscosity ...................................................................................................................................37 Water .......................................................................................................................................37 Ash...........................................................................................................................................38 Carbon Residue .......................................................................................................................38 Sulphur ....................................................................................................................................38 Aluminium ................................................................................................................................38 Silicon ......................................................................................................................................38 Vanadium .................................................................................................................................38 Total Sediment Potential (TSP) ...............................................................................................38 Sodium.....................................................................................................................................38 Calcium, zinc and phosphorous...............................................................................................38 Iron...........................................................................................................................................39 Nickel .......................................................................................................................................39 Asphaltenes .............................................................................................................................39 Pour point ................................................................................................................................39 Flash point ...............................................................................................................................39 Hydrogen sulphide ...................................................................................................................39 Stability ....................................................................................................................................39 Compatibility ............................................................................................................................40 Ease of ignition ........................................................................................................................40 Microbial contamination ...........................................................................................................40 Fourier Transform Infrared Spectroscopy Screening ...............................................................40 Safety issues ...............................................................................................................................41 Fire and explosion ...................................................................................................................41 Health ......................................................................................................................................41 Material Safety Data Sheets ....................................................................................................41 Pollution ...................................................................................................................................42 Chapter 8 - Bunker specifications 45 Origins .........................................................................................................................................45 Current standards ........................................................................................................................45 xiii ISO 8217..................................................................................................................................45 CIMAC 2003 ............................................................................................................................46 Chapter 9 - How are bunkers delivered? 49 Barge ...........................................................................................................................................49 Dumb barges ...........................................................................................................................50 Self propelled barges ...............................................................................................................50 Coastal tankers ........................................................................................................................50 Pipeline ........................................................................................................................................52 Road tanker .................................................................................................................................52 Rail tanker ...................................................................................................................................53 Drum ............................................................................................................................................53 Booming ......................................................................................................................................53 Delivery procedures.....................................................................................................................53 Access .....................................................................................................................................54 Communications ......................................................................................................................55 Sampling ..................................................................................................................................59 Chapter 10 - How are bunkers measured? 63 Measurement details ...................................................................................................................65 Chapter 11 - How are bunkers used? 69 Diesel engine ...............................................................................................................................69 Slow speed diesel ....................................................................................................................69 Medium speed diesel ...............................................................................................................70 High speed diesel ....................................................................................................................71 Boilers..........................................................................................................................................71 Steam turbine ..............................................................................................................................72 Gas turbine ..................................................................................................................................73 Fuel storage.................................................................................................................................74 Fuel treatment .............................................................................................................................75 Settling .....................................................................................................................................75 Centrifuging .............................................................................................................................75 Heaters ...................................................................................................................................75 Filtration ...................................................................................................................................76 Injection viscosity .....................................................................................................................76 Chapter 12 - What can go wrong? 79 Quantity dispute...........................................................................................................................79 Delay to shipping ....................................................................................................................80 Delay to barge .........................................................................................................................80 Quality dispute .............................................................................................................................80 Debunkering ................................................................................................................................81 Chapter 13 - How to avoid and deal with problems 83 Dispute communications .............................................................................................................83 Notice of claim .............................................................................................................................83 Exchange of information ..............................................................................................................83 Referee analysis ..........................................................................................................................83 Surveyors ....................................................................................................................................83 Evidence ......................................................................................................................................84 Advice ..........................................................................................................................................84 Resolution....................................................................................................................................84 xiv AN INTRODUCTION TO BUNKERING Appendix I - International Organisations, Legislation and Regulation 85 Flag State and Port State ............................................................................................................85 International Maritime Organization.............................................................................................85 Proposed changes to sulphur limits .........................................................................................86 The European Union ...................................................................................................................87 United States ...............................................................................................................................87 Others ..........................................................................................................................................88 Appendix II - Where else to go for help 89 Websites ......................................................................................................................................89 Publications .................................................................................................................................90 Appendix III - Abbreviations 91 List of Tables and Figures 93 Index 95