P&I Club Warns on Increase in Low Quality Bunker Claims

Article courtesy of Ship and Bunker

Blending of poor-quality fuels may account for part of the rise in claims

Blending of poor quality oil products to try to meet demand for cheaper bunkers has led to an uptake in claim notifications relating to the supply and consumption of poor quality fuel, the North of England P&I Association says in a newly released circular.

“Coupled with the stricter provisions that are to be seen in charter party terms, requiring fuels to comply with strict ISO specifications and being fit for safe consumption, it was perhaps inevitable that the frequency of claims – both by purchasers against bunker suppliers and by owners against charterers responsible for stemming suitable bunkers – would increase as the search to minimise costs continues,” the organisation said.

The P&I club called for members to check that suppliers are reputable and provide details of the required fuel specifications in advance, and it said charters should be aware of any requirements under the charter party when making these arrangements.

“It was perhaps inevitable that the frequency of claims … would increase

North of England P&I Association

Members should also understand the bunker supply terms, particularly claims notification requirements, which are often very strict, and they should make sure procedures are in place to get samples and documentation as needed.

The club noted that a charterer stemming off-specification fuel can lead to various claims and require them to off-load the fuel and find an alternate source, costing a great deal of time and money.

Bunkering specialists have been warning of increasing problems with bunker quality as suppliers blend fuels to meet sulphur content rules.