In particular, Patrick Greaney, Lawyer, Gard, explains that off-specification bunker claims can sometimes have serious consequences. However, there are certain measures that can be implemented. Patrick Greaney recommends the following:
A proactive approach is important
- The importance of a timely contractual review cannot be understated:
- Complying with time bars in the bunker supplier’s terms and conditions betters a charterer/traders’ position (and negotiating position) against the supplier.
- It is important to understand the specification(s) and standard(s) that the fuel must meet under the charterparty and sale contract.
- A charterer may be best served by trying to align all parties on sampling, testing and a testing protocol and/or pushing-back on final and binding testing.
- Early engagement of an expert is often advisable, to understand the severity of the issue, and inform solutions. Even though bunkers may be marginally off specification, it may be possible to use them as is or with alterations. An expert assessment is important when considering alternatives.
- Timely sample testing creates a better understanding of the fuel supplied, and informs solutions.
- Understanding the operational management onboard by the crew of the alleged problematic bunker stem is important. For example, commingling of incompatible bunkers, extended storage times and inappropriate storage temperatures could potentially lead to operational issues, particularly in the case of VLSFO and biofuels.
- The ship’s trading pattern should be considered, for de-bunkering and resale if appropriate.
Finally, organised and clear communication between the stakeholders can help decide on the best way forward, to prevent losses for all.
To remind, Maritec recently tested seven samples from four different suppliers representing HSD and Bio Distillate grade deliveries in Indonesia, with flashpoint as low as 35°C for the period of 10 December 2023 to 19 December 2023.
