Bunkering operations in the Port of Singapore

The Maritime Port Authority of Singapore (the MPA) is keen to ensure that quality bunker services are provided in the port. Every bunkering operation carried out by bunker tankers to ships must comply with the MPAs standard code of practice for bunkering (thebunker code), which helps avoid disputes.

Sampling procedures in Singapore what should chief engineers look out for?

Chief engineers should check and ensure that the bunker code sampling procedures are carried out.

The MPA has produced a usefulplacard (see below) setting out the key steps in the sampling procedure.

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Cappuccino Bunkers what are the risks and how to avoid them?

This is a problem where air is pumped into bunkers, causing them to froth and appear to have a larger volume. When bunkers are supplied in large quantities, this may result in significant losses for the buyer.

The MPA has produced a usefulplacard setting out the main steps in the quantity measuring procedure.

From 1 January 2017 the port of Singapore will be using Mass Flow Metering systems (MFM) for all marine fuel oil deliveries,.This is expected to improve transparency in the bunkering process and to reduce any illegal bunkering activities.

What should be done when there is a bunker quantity dispute?

The bunkering code also provides guidance on what to do in the event of abunker quantity dispute. Chief engineers should:

• re-check all heights, gauging, measurements, calculations and figures
• investigate and confirm that the relevant tanks and lines were not modified
• inspect the stock movements in the bunker tankers stock movement logbook
• request copies of the relevant pages of the bunker tankers tank calibration tables and the last certificate of quantity or equivalent document
• request copies of the surveyors bunker tanker measurement reports.

A letter of protest should be issued by the master to formally declare there is a dispute. If possible, photographs should be taken as evidence.

Should bunkering be performed outside port limits (OPL)?

If a vessel is calling at Singapore only to bunker, bunkering OPL can save time and costs, e.g. port charges. Bunker suppliers and surveyors operate under anaccreditation scheme in Singapore. If bunkers are supplied by an accredited supplier, the risks of bunkering OPL may be lower. That said, there are risks associated with this practice:

• OPL is outside the MPAs jurisdiction and the bunker code will no longer apply, including the MFM systems. The protection afforded by the MPAs standards and regulations and any dispute resolution mechanism will therefore be unavailable to owners and bunker buyers should any dispute arise
• Bunkering in open waters puts the vessel at the mercy of the weather and swells
• The Straits of Malacca and Singapore is one of the busiest shipping lanes in the world. Carrying out bunkering operations there may increase the risk of a collision, especially as the vessels ability to manoeuver during bunkering operations is restricted
• The vessels safety may be compromised and the risk of pollution is increased
• There is a real risk of piracy and fuel theft in the region,

Is there a special dispute resolution mechanism in Singapore for bunker disputes?

The bunker code provides for the Singapore Chamber of Maritime Arbitration (the SCMA) to administer bunker dispute resolution in accordance with the Singapore Bunker Claims Procedure (theSBC Terms). Unless parties have agreed to submit the disputes to a court or tribunal in another jurisdiction, it is likely that a dispute under a bunker contract with an accredited bunker supplier in Singapore will be submitted to the SCMA under the SBC Terms.

The SBC Terms are intended to provide a simplified, quick and inexpensive procedure to resolve disputes arising out of the sale and supply of bunkers where the claim or counterclaim does not exceed SGD 100,000 and where only a single issue is involved in the dispute. TheSingapore International Arbitration Act 2012 applies to arbitrations commenced under the SBC Terms. Any award issued is final, binding and enforceable.

Source: The Gard P&I Club