BIMCO & IBIA. Bunkering.

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1 BIMCO & IBIA Bunkering Guide

2 Intrductin 2 Due t the relentlessly rising price f il and ever-increasing marine envirnmental prtectin awareness, the bunkering f ships, which was nce a relatively lw skill, lw value, activity has evlved int a highly fcused shipbard peratin in terms f regulatry cmpliance, and quality and quantity assurance. The purpse f this guide is t assist a ship s fficers and crew invlved in bunkering peratins t act in cmpliance with applicable regulatins and industry best practice; the guide will als be f value t shre staff. This guide aims t prvide general infrmatin, advice and guidance. Detailed guidelines, instructins and prcedures are available in the ship s Safety Management System (SMS) and the Shipbard Oil Pllutin Emergency Plan (SOPEP) r Shipbard Marine Pllutin Emergency Plan (SMPEP) as apprpriate. Many wners als have their wn specific requirements fr the cnduct f bunkering peratins which are mre detailed than the minimum requirements in the peratinal prcedures cntained in the vessels SMS, SOPEP r SMPEP, especially with regard t cmmercial cnsideratins. Bunkering peratins are gverned in general terms internatinally by the IMO s MARPOL Annexes I & VI. SOLAS Chapter VI Regulatin 5.1 als requires that a Material Safety Data Sheet be prvided fr il prducts carried n bard ships. In additin t the IMO regulatins, many states, and even individual prts, have their wn regulatry regimes cvering bunkering peratins. It is f paramunt imprtance that prir t cmmencement f any bunkering peratin, a check is made with the lcal agent and/r bulk supplier fr infrmatin and guidance pertaining t the lcal regulatins. The MARPOL Annex VI sulphur limits and applicatin dates are as fllws: 1 July 2010 Sulphur cap in Emissin Cntrl Area s (ECA s) reduced frm 1.50% t 1.00% 1 January 2012 Glbal sulphur cap t be reduced frm 4.50% t 3.50% 1 January 2015 Sulphur cap within ECA s t be reduced t 0.10% 1 January 2020 Glbal sulphur cap t be reduced t 0.50%

3 Fuel Types 3 There are tw types f bunker fuel il: Residual fuel available in varying viscsities and high and lw sulphur variants Distillate fuel - marine diesel & gas il Residual fuels are a mix f refinery residual fuel and distillates blended t meet specificatin requirements. Distillate Fuel (which is prduct btained by cndensing the vapurs distilled frm petrleum crude il r its prducts) cmes in tw variants and again, bth are available with varying levels f sulphur cntent: Marine Gasil (MGO) clear and nt cntaining any residual cmpnent Marine Diesel Oil (MDO) essentially a distillate fuel which may cntain a small amunt f residual cmpnent.

4 Operatins 4 Health, Safety, Envirnmental prtectin SOLAS Chapter VI Regulatin 5-1 requires that a Material Safety Data Sheet (MSDS) fr MARPOL Annex I type Carges and Marine Fuel Oils shall be prvided t the ship by the supplier prir t lading r bunkering; this is t assist shipbard persnnel in carrying ut their duties under safe cnditins. MSDSs might include the fllwing warnings and guidance: Fuel il and vapurs may: Ignite Cause dizziness and headaches Cntain hydrgen sulphide which is highly pisnus Harm r cause irritatin t skin Irritate the muth and lungs Precautins: Never enter an enclsed space nt apprved as safe fr entry Stand t windward when pening tank lids r sampling pints Use gggles Wear suitable glves Wear suitable wrking prtective clthing Change ut f any il-saked clthing as sn as pssible Fire Precautins: Keep all bunker fuel away frm naked flames, sparks r ther surces f ignitin Keep all bunker fuel away frm heated surfaces

5 Operatins (cnt.) 5 D nt smke n deck during bunkering peratins D nt smke near fuel tanks, r ther lcatins where fuel vapurs may be given ff Safety and Envirnmental Prtectin: Knw and use the apprpriate Safety Management System checklists and prcedures fr bunkering, and if applicable, fr Ship t Ship peratins Knw the ship s Shipbard Oil Pllutin Emergency Plan (SOPEP) r Shipbard Marine Pllutin Emergency Plan (SMPEP) Ship s il spill equipment is t be ready and available in accrdance with the SOPEP/SMPEP Ensure that prper lines and means f cmmunicatin internally and externally are established prir t cmmencing peratins, including particularly agreement n hw ship stp r supplier stp instructins will be given, acknwledged and implemented Any spill in cnnectin with a bunkering peratin must immediately and in accrdance with the SOPEP/SMPEP be reprted t the apprpriate bdies, including but nt limited t: Prt Authrities Prt State Authrities Owners/Operatrs/Managers Ship s P&I Club Oil Spill Cntractrs/Qualified Individual, if applicable Ship s Flag State Planning fr a bunkering peratin The fllwing pints shuld be cvered in the n bard prcedures f the vessel hwever and are restated here fr the sake f clarity.

6 Operatins (cnt.) 6 Prir t bunkering the staff and crew invlved must be aware f: The quantity and grades f fuel t be received. The methd f delivery (pipeline, barge r rad tanker). The tanks and pipeline systems n bard that will be used during the peratin, The rder in which the tanks will be filled. The anticipated pumping rate and duratin f the peratin. Wh will be respnsible fr each aspect f the bunkering. All invlved shuld review the apprpriate requirements f the vessel SMS and SOPEP r SMPEP. Mnitring and watch-keeping As with all shipbard peratins, mnitring f the peratin and watch-keeping is t be carried ut in accrdance with the Safety Management System, Ship Security Plan and gd seamanship taking int accunt the prevailing cnditins n bard and in the vicinity f the ship. There shuld be a minimum f ne deck watch and ne engine-rm watch n duty at all times verseeing the: Safe access between shre r ship t ship Bunker transfer cnnectin Bunker transfer prgress (transfer rate, in rder t avid verfills, bunkers received versus capacity and agreed quantity t be received n bard, estimated time f cmpletin, etc.) Sampling Recrd keeping All events and peratins are t be carefully entered in bth the Deck and Engine lg bks respectively and checks made that the apprpriate entries in the Engine Rm Oil Recrd Bk are als made.

7 Operatins (cnt.) 7 Bunker system maintenance and testing Pre-arrival checklist Bunker lading plan Bunker start-up and cmpletin times Sunding/ullage recrds Bunker measurement calculatins Bunker tank gas readings Cmpliance with SMS, SSP, inclusive prcedures and best practices Cmpleted bunker checklists Recrd bk entries (deck, engine and scrap lg bks) Oil recrd bks All bunker-related cmmunicatins and exchange f dcuments including: Bunker Delivery Nte (BDN) Letters f Prtest Fact Sheets Sunding reprts and measurement calculatins sheets Bunker Quality certificates Bunker receipts Sample distributin and recrds shuld be carefully cmpleted, checked, frwarded and filed as apprpriate.

8 Surveys 8 Prcedures In prts which are nt in a state which is party t MARPOL Annex VI the suppliers sampling prcedure may nt be in accrdance with that detailed belw. The suppliers may chse t fllw gd practice as detailed belw but this will be a matter cntrlled by the regulatins in that prt and the cmmercial agreement between the seller f the fuel and the buyer f the fuel. A cntinuus drip sample is t be taken thrughut bunkering at the clsest available sampling pint t the receiving ship s bunkering cnnectin/manifld agreed between the supplier s and receiver s representatives. The sampling equipment, including a sampling cntainer, is t be checked fr prper cleanliness and peratin. Prir t cmmencement f bunkering, prper sealing f sampling cntainer and needle valve are t be agreed upn and prperly recrded. Sampling is t start simultaneusly with the bunkering; if necessary, the needle valve must be adjusted t prduce apprpriate sample flw. If the sampling cntainer is changed during bunkering, the new sampling cntainer and needle valve must be re-sealed; all sample seal numbers must be recrded. Cntinuus checks f the sampling cntainer and needle valve seals are t be carried ut. After cmpletin f bunkering, bth the supplier s and receiver s representatives are t verify and witness the cnditin f the seals befre breaking the seals. The sampling cntainer is t be shaken in rder t prmte hmgeneity f the sample. The sample is t be pured int 4 r 5 sample cntainers. Sample cntainers are t be sealed with uniquely-numbered seals. Sample labels are t be checked against the uniquely-numbered seals. Bth the supplier s and receiver s representatives are t sign the sample labels.

9 Surveys (cnt.) 9 Sample labels are t be pasted n the sample cntainers in the presence f the supplier s and receiver s representatives. All seal numbers are t be recrded n the sample labels and in the Bunker Delivery Nte (BDN). The BDN is t be signed and cuntersigned by the supplier s and receiver s representatives respectively. If the vessel is enrlled in a fuel testing prgramme additinal samples will be required ver and abve the statutry samples; these additinal seal numbers shuld als be included n the BDN. It is imprtant t remember that in the event f a dispute the samples may be required as evidence in a curt f law. Minimum infrmatin fr a Sample label: Name and IMO number f the receiving ship Place r prt f bunkering Name f bunker supplier Name f bunker carrier (barge, tanker, truck r installatin) Grade f bunker fuel Date and time delivery cmmenced Sample methd used t btain representative sample Lcatin at which sample was drawn Name and signature f the supplier's representative Name and signature f the receiver's representative Seal number (and als crss-checked with BDN) Cautin D nt sign any sample seals r labels prir t cmpletin f the bunkering

10 Surveys (cnt.) 10 D nt sign extra seals r sample labels D nt sign as having received any samples withut witnessing the rigin f them Always re-check the cnditin f seals and recrded seal numbers prir t signing the BDN If the receiving ship is nly prvided with samples f unknwn rigin and/r samples which have nt been witnessed, such samples and assciated dcuments shuld be stamped and/r marked and/r signed sample [r samples if mre than ne] rigin unknwn, signed withut prejudice t acknwledge receipt nly and a letter f prtest issued t that effect. The samples given t the vessel shuld be stred in a safe place and retained fr a perid (usually at least 3 mnths) befre safe dispsal. Individual vessel peratrs may require the samples t be retained fr a lnger perid The requirements fr the MARPOL sample are mre stringent, these must be retained fr a perid f 1 year, either n bard the vessel r at a lcatin which is under the ships cntrl Testing It is cmmn t have the supplied bunkers tested by an apprpriate labratry befre use n bard in rder t be cnfident that the bunkers are within the agreed specificatins and d nt cntain any substances that might diminish perfrmance, increase wear and tear f the ship s engines r therwise cause harm. Labratry testing is als used t ensure cmpliance in MARPOL Annex VI s Emissin Cntrl Areas and with lcal regulatins requiring the use f lw sulphur fuels. It is recmmended that any indicatin f sulphur levels abve 4.5 % r 1.0 % respectively shuld initiate a ntificatin t the flag administratin, bunker prt administratin and supplier accrding t the requirements f the IMO Prt State Cntrl Guidelines fr MARPOL Annex VI as set ut belw: The Prt State Cntrl Officer (PSCO) shuld check whether the quality f fuel il used n bard the ship cnfrms t the prvisins f MARPOL Annex VI regulatins 14 and 18*, taking int accunt appendix IV t the Annex. Furthermre, the PSCO shuld pay atten-

11 Surveys (cnt.) 11 tin t the recrd required in regulatin 14(6) in rder t identify the sulphur cntent f fuel il used while the ship is within SOx emissin cntrl areas, r that ther equivalent apprved means have been applied as required. *It shuld be nted that in the case where the bunker delivery nte r representative sample as required by regulatin VI/18 is nt in cmpliance with the relevant requirements, the master r crew shuld have dcumented that fact. Where fuel il supply was undertaken in a prt under the jurisdictin f a Party t MARPOL Annex VI, the PSCO shuld reprt that nn-cmpliance t the apprpriate authrity respnsible fr the registratin f fuel il suppliers in accrdance with regulatin VI/18(8)(a). Measurements and quantity If pssible, bth the supplying ship s and receiving ship s designated fuel tanks fr the bunkering peratin shuld be measured and surveyed befre cmmencement in rder fr supplier s and receiver s representative t agree upn the cntent and cnditin f the these tanks. If there is any disagreement related t the quantity, this shuld frm a basis fr issuing a letter f prtest but it shuld be nted that suppliers terms and cnditins generally specifically disallw shipbard measurement in cnnectin with any dispute as t quantity delivered. The tank r tanks shuld be checked fr water by water finding paste dipping r by using a tank bttm sampling device. The water paste if used in HFO, might indicate traces f water and shuld frm the basis f a letter f prtest. Be aware Receiving ship's crew shuld be alert t the fllwing malpractices: Shrtening r lengthening f measuring tapes used by the supplier Falsified tank tables fr the supplying tank r tanks Deliberately declaring incrrect densities and temperatures f the delivered fuel r fuels

12 Surveys (cnt.) 12 Adding water; fr example by using the supplying barge s firepumps r ther service-pumps By adding air t the fuel, the s-called cappuccin effect Other less sphisticated methds f reducing the quantity f bunker fuel delivered include unauthrised r cncealed piping between the strage tanks and ther un-nminated tanks, such as cffer dams r vid spaces. Frequently Asked Questins (FAQ): What if the ship s calculatins and measurements d nt crrespnd t the supplier s figures n the bunker receipt? Be sure t witness the measurements at the supplier s end f the delivery line wherever pssible. Suppliers will nrmally nly accept delivering barge/ship, tank-truck r shre-tank figures as cnclusive. If the ship des nt agree with the tank sundings, insist that they are re-taken again immediately. If the ship des nt agree t the quantity calculatins, sign nly fr the sundings and serve a nte f prtest in respect f the calculated vlume. If the prblem cannt be reslved appint an independent surveyr t measure all barge and ship's tanks. What is Density? Density is imprtant in terms f quantity calculatins and crrect peratin f the purifier; it is als an indicatr f the energy and ignitin quality f the fuel il.

13 Frequently Asked Questins (FAQ) (cnt.): 13 Density is the relatinship between mass and vlume at a given temperature and the unit is kg/m3. The standard reference temperature used in internatinal trade fr density calculatin f petrleum prducts is 15 C. Applying this density at 15 C t the vlume gives the weight in vacuum. The relatinship between density and weight factr in air fr fuel ils is apprximately 1.1 kg/m3. T cnvert density at 15 C t the weight factr in air at 15 C, 1.1 kg/m3 shuld be deducted. What if there is excess water cntent in bunker fuel? The level f water in bunker fuel is nrmally lw, abut % by vlume. The intrductin f water can riginate frm a number f surces, including: Tank cndensatin Tank leakage Heating cil leakage Deliberate injectin Even thugh nt a nrmal prcedure, it is pssible at least t btain indicatins r traces f water in the delivered fuel by use f water paste; if water is detected, a letter f prtest shuld be issued stating that traces f water in the fuel have been fund. The actual amunt f water present can nrmally nly be established when the water has settled dwn at the bttm f the fuel tank, a day r s after delivery. Nrmal levels f water in the fuel are usually drained frm the ship s settling tanks with the remaining water being remved by the purifier and centrifuge. Mst ship s can cmfrtably handle fuel il with water cntent up t abut 2% befre the purifier. What is sulphur? Sulphur is a naturally ccurring element in crude il; it becmes cncentrated in the residual heavy fuel during the refining prcess. The cncentratin f sulphur in fuel il depends primarily n the

14 Frequently Asked Questins (FAQ): (cnt.) 14 rigin f the crude il. On a wrldwide scale the average sulphur level is in the range f 2-4% m/m (by mass). What is fuel il blending? Blending is a prcess fr mixing tw r mre residual fuel ils and/ r distillate fuel ils t achieve a specific end prduct defined typically by reference t ISO 8217, IFO and viscsity, sulphur cntent r ther parameters. In practice, all bunker fuel is blended at ne r mre stages f its jurney frm refinery t ship, ccasinally with material that is nt suitable fr use as bunker fuel; usually but nt invariably, such cntaminatin is uncvered by labratry analysis f delivery samples. What if fraud r attempted fraud is experienced? Any suspicin f fraud, prvisin f incrrect infrmatin r ther irregularities shuld as a minimum, frm a basis fr issuing a letter f prtest fr each incident r irregularity t the supplier. Serius cases f suspected fraud r disagreement relating t the amunt said by the supplier t have been delivered and believed by the ship t have been received shuld be reprted t the ship s P&I Club. What are ff spec bunkers? Off spec bunkers are simply bunkers that are materially different frm the cntract specificatin.

15 Final Wrds 15 The ship shuld advise the bunker purchaser f: the grade and quantity f bunkers needed safely t cmplete the planned next vyage the capacity f the fully segregated bunker tanks fr string the abve bunkers upn arrival at the planned bunkering lcatin the lcatin f the ship s bunkering manifld and estimated height abve the waterline and distance frm the ship's side Bunker purchasers shuld advise the ship f: the specificatin and quantity f bunker fuel stemmed (rdered) and Where, when and hw the bunker fuel will be delivered. Ships shuld take int accunt that: Bunkers frm different suppliers shuld be segregated s far as practicable All bunker tanks shuld be gauged and the results recrded prir t and n cmpletin f bunkering Dcumentatin shuld nt be signed befre witnessing the actual event in respect f which the signature is requested Samples shuld be taken by the cntinuus-drip methd thrughut the bunkering If bunkers are supplied by mre than ne supplier, separate sets f samples shuld be taken f each bunker delivery The bunker delivery receipt shuld be signed nly fr the vlume received if there is any dubt that the true density and/r temperature f the bunker fuel is nt as stated. References t regulatins and guidance: MARPOL Annex I - Regulatins fr the Preventin f Pllutin by Oil MARPOL Annex VI - Preventin f Air Pllutin frm Ships. IMO MEPC.1/Circ.508 Bunker Delivery Nte and Fuel Oil Sampling IMO Guidelines fr the Sampling f Fuel Oil - Annex VI f MARPOL 73/78 SOLAS Chapter VI Regulatin 5.1 Material Safety Data Sheet OPA 90 - The Oil Pllutin Act (OPA) US law adpted in August 1990 EU Directive 2005/33/EC f the Eurpean Parliament and f the Cuncil f 6 July 2005 amending Directive 1999/32/EC as regards the sulphur cntent f marine fuels ISGOTT Fifth Editin Chapter Ship t Ship Transfer Guide, ICS BIMCO Standard Bunker Cntract BIMCO Bunker Clauses ISO 8217 Fuel Standard 2010

16 IBIA Aims f the Assciatin T prvide an internatinal frum fr bunker industry issues; T represent the industry in discussins and negtiatins with natinal and internatinal plicy makers, legislatrs and ther grups and bdies; T review, clarify, imprve, develp and endrse where apprpriate, industry methds, practices and dcumentatin; T increase the prfessinal understanding and cmpetence f all wh wrk in the industry; T prvide services and facilities fr members and thers as the Bard shall frm time t time cnsider apprpriate. IBIA The Internatinal Bunker Industry Assciatin Grund Flr Latimer Huse 5-7 Cumberland Place Suthamptn, Hampshire SO15 2BH BIMCO Reflecting Yur Interests BIMCO is an independent internatinal shipping assciatin cmprised f ship wners, managers, brkers, agents and many ther stakehlders with vested interests in the shipping industry. The assciatin acts n behalf f its glbal membership t prmte higher standards and greater harmny in regulatry matters. It is a catalyst fr the develpment and prmtin f a fair and equitable internatinal shipping plicy. BIMCO Bagsvaerdvej Bagsvaerd Denmark frntffice@bimc.rg

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