Ships bunkering is generally applied to the storage of petroleum products in designated tanks for ship's main engine propulsion and power generation at sea. Bunkering is a major voyage cost for ship owners to run their business. A prudent shipowner/operator needs a
bunkering plan – allowing for the purchase of bunkers at the best price in
quantities sufficient for a safe voyage, but also allowing for the maximum
carriage of cargo. Refueling of ships is carried out at all major seaports.
The term "bunkers" is an old shipping term that goes back to the days
when coal was the primary fuel used onboard ships. The coal would be
stored onboard the ship in a space called the coal bunker. The transition from
sail to steam in the 19th and early part of the 20th century was facilitated by the
establishment of bunkering ports worldwide (where coal was widely available).
In today's busy shipping market, "bunkers" is referred to as any liquid marine fuel.
The dense, thick fuel has been used in the cargo shipping and cruise line industry for years because it is inexpensive, especially compared to other fuels. After the oil has been refined into diesel, gasoline, or jet fuel, bunker fuel is what's leftover at the refinery.
Explained below some widely used terms in the bunker industry.
Bunker delivery note
The standard document required by Annex VI of MARPOL
contains information on fuel oil delivery: name of receiving vessel, port, date, data
of a supplier, quantity, and characteristics of fuel oil. Every BDN is to be accompanied by
a representative sample of the fuel oil delivered.
Fuel oil suppliers are to provide the bunker delivery note. The note is to be retained on
the vessel, for inspection purposes, for three years after the fuel has been
delivered.
Following information to be included in the Bunker Delivery Note:
- Name and IMO number of receiving ship
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Bunkering Port
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Date of commencement of delivery
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Name, address, and telephone number of marine fuel oil supplier
- Product name
- uantity (metric tons)
- Density at 15 (kg/m3)
- Sulphur content (% m/m). Further, the seal number of MARPOL sample label to be included in the Bunker Delivery Note for cross-reference purposes.
Residual fuel oils: which are distinguished by their viscosities and are
blended with other products to meet the required viscosity. These blends are
generally known as Intermediate Fuel Oil (IFO). IFO is primarily burned in the
ship's main propulsion system.
Marine Gas Oil (MGO) and Marine Diesel Oil (MDO): which are examples
of distillates. They are burned in the main engines of smaller vessels and the
auxiliaries of larger ships. MGO is a higher quality. It has a clear color and
contains no residual oil.
Viscosity: this is the measure of a liquid's internal resistance to flow.
Viscosity is important because it indicates the amount of heating that the fuel
needs for pumping purposes and to achieve optimum burning performance
Density: this is a measurement of mass per unit volume of a substance.
For marine fuels, it is normally quoted in terms of kg/liter or kg / cubic meter at a
temperature of 15 degrees centigrade. Density is used to convert volume into
metric tons.
Flash point: this is the temperature at which vapors emitted by the oil will
ignite when a test flame is applied. The flashpoint is important for purposes of
storing the oil, preparing it for burning, and safety considerations.
There are also contaminants in fuel oil, such as vanadium, sodium,
aluminum, and silicon. Controlling the contaminants can reduce engine wear
and tear and provide for more efficient combustion.
Under MARPOL Annex VI requirements, a BDN is to be retained on board for three years. Every BDN is to be accompanied by a representative sample of the fuel supplied. The sample is to be retained on board for a minimum of twelve months. The sample is to be a minimum of 400 ml and provided with a label with information stating the location where the sample was taken, sampling method, bunker date, name of bunker barge/pier, receiving ship's name, and IMO. No, sample seal number and bunker grade.
The Bunker Market
The price and availability of ship's fuel significantly impact freight and hire
rates and the ship owner's and operator's profitability overall.
The sale and purchase of bunkers involve various players. There are many players in this volatile market, such as:
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Physical Suppliers – these include the major oil companies, as well as smaller
independent and state-owned entities.
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Brokers – these are intermediaries who, in exchange for a commission on the
sales price, will match the seller and buyer of fuel oil. They do not trade for their
account but act as agents. The seller pays the brokerage commission.
Bunker brokers understand the bunker market, provide market advice, facilitate
the negotiation of the sale and purchase, assist in dispute resolution, and provide
additional value-added services.
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Traders – these are entities that buy and sell bunkers within the supply chain.
They do not act as intermediaries/agents. Instead, they take a position and buy
and sell bunkers for their own account.
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Crude tankers- these are transport ships that move bulk volumes of crude oil from the oil extraction facility to the refinery.
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Purchasers - most often this is the shipowner, demise, or time charterer of a
vessel. The ship's owner usually is responsible for arranging and paying for
the ship's fuel oil. However, when the vessel has been chartered out on a demise
or time charter basis, it is the demise or time charterer's responsibility to provide
and pay for the ship's fuel (so long as the vessel remains on hire). The charter
party will contain detailed specifications concerning the quality of the fuel oil to be
provided.
Those in the bunker industry are involved in multi-million dollar
transactions that keep ships and aircraft moving.
Reputed bunker suppliers :
- World Fuel Services is a Fortune 500 company and provides energy
procurement advisory services, fuel oil supply, and transaction and payment
management solutions for commercial and industrial customers, principally in the
marine, aviation, and land transportation industries.
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Glander International Bunkering has offices around the U.S.A. and the world and
is longstanding bunker traders and brokers.
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Major oil companies such as Shell are a worldwide supplier of various marine fuels. Moreover Shell is investing in supply infrastructure in key global ports to serve customers who have chosen LNG as their bunkering fuel.
With the recent implementation of IMO's 0.5% global sulfur cap on fuel
content from 1 January, 2020 is a response to heightening environmental
concerns, contributed in part by harmful emissions from ships. Undoubtedly this has created a massive impact on the global bunkering industry.
In the BIMCO website many Common bunker terms published that provide useful guideline relating to various issues that might arise during the sale
and purchase of bunkers.
Related articles
- Acceptance / rejection of fuel in a quality dispute
Accepting fuel oil for ship use needs some careful consideration since poor quality fuel can cause ships main engine fuel system operational problems, such as purifier or filter clogging, fuel pump scoring or failure, severe cylinder liner wear, fuel injector seizure, exhaust valve seat corrosion or blow-past and turbocharger turbine wheel is fouling. Above is just a shortlist of potential problems. Ships chief engineer should apply his best judgment before deciding to accept or reject bunker fuel oil......
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Operational guideline during bunkering
Fuel oil bunkering is a critical operation onboard ships that require receiving oil safely into the fuel oil tanks, without causing an overflow of oil. With the cost of bunkers amounting to 50% of the total operating costs of ships, shipowners need to seek ways to monitor and control this vast expenditure continually. Typically, physical custody transfer of bunkers is made thousands of miles away from the contracting parties' offices, with neither buyer nor seller present during actual bunkering operations.
......
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Common bunker terms and related guideline
Ships bunkering is generally applied to the storage of petroleum products in designated tanks for ship's main engine propulsion and power generation at sea. Bunkering is a major voyage cost for ship owners to run their business. A prudent shipowner/operator needs a bunkering plan – allowing for the purchase of bunkers at the best price in quantities sufficient for a safe voyage, but also allowing for the maximum carriage of cargo. Refueling of ships is carried out at all major seaports.
........
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Ships bunkering guideline- planning, preparation, safety checks & confirmation
Bunkering checklists should be implemented to reduce the risk of negligence and other operational errors. They must be followed in consultation with the chief engineer, as he is normally the designated officer-in-charge of the bunkering operation. Before bunkering, usually, a junior engineering officer takes soundings of bunker tanks and calculates the volume of fuel oil available in every fuel oil tank on the ship. Then a bunker plan is prepared for the distribution of the fuel oil to be received.
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Bunkering arrangement and safety factors onboard
When disputes arise over quantity and quality transferred, investigations after delivery are usually inconclusive if the shipboard personnel of the receiving vessel is not correct and or fully informed and trained. Protests, legal fees, management time, loss of goodwill, stress all add on to costs with usually neither party concluding with certainty what transpired onboard......
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Bunkering safe procedure and detail guideline for ships
Bunkering may take place offshore, at anchor or alongside. It may be pumped from a road tanker, bunker barge, or another tanker or ship. Whatever the provider, the procedures followed are similar. Bunkering should be considered a high-risk operation, where mistakes can result in pollution, high financial penalties, or even imprisonment......
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How to keep bunkering record ?
The consequences of bunker shortage or off-specification bunkers can be very severe. A lower quality bunker supply can lead to ship engine failure, incur loss-time, and additional expenses for refueling. In many parts of the world, greedy bunker suppliers make tricks to supply less.
Both this situation not only increases the financial burden of a shipowner but also damages business reputation. Some critical considerations, therefore, need to be made for a safe bunkering operation.
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Precautions prior transferring fuel oil into storage tanks
Fuel oils are loaded through deck fill connections that have sample connections provided to allow the fuel to be sampled as it is taken aboard. HFO is placed in storage tanks fitted with heating coils. In preparation for use, HFO is transferred to the fuel oil settling tanks via FO transfer pumps, which are equipped with a suction strainer. Piping is so arranged that the pumps can convey fuel between storage tanks and the deck connections for offloading. Settling tanks are used to sanction gross water and solids to settle on the bottom.
......
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Treatment of waste oil and oily bilge
All modern cargo ship types are now essentially equipped with incinerators to process waste oil, bilge, and sludge generated in ships' machinery spaces and also overboard discharge arrangements under 15 ppm. However, if such onboard disposal is improper or impossible especially when ship transiting through a special area, all waste items should be taken ashore for disposal at a shore receiving facility......
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Procedure for oil tankers and how to maintain records
Tankers are specialized vessels that include crude oil, product, chemical, LNG, and other tanker types. Tankers spend considerable time in ballast given the typical one -way nature of the underlying trades. Tankers are selfdischarging and most are equipped with a series of pumps that allow for a fast turnaround in port......
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Heating of fuel oil storage tank
Ships fuel oil bunker tanks and waste oil tanks must have some form of tank heating. Normally the heating is by way of steam produced by an oil-fired boiler and passed through coils inside the oil tank. Other ways to heat the fuel tanks are by using thermal oil. It also utilizes an oil fired boiler that heats the thermal oil, which is circulated through coils inside the tank by a pump. Temperature regulation and monitoring can be automatic and self-adjusting but are commonly effected by checking the tank temperature and manually adjusting the heating accordingly......
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Fuel oil viscosity control
Fuel viscosity control is a method to control viscosity and temperature of Fuel Oil (FO) for an active fire in diesel engines of motor vessels and generators of oil-fired energy plants. Fuel oil's viscosity heavily depends on the temperature; the higher is the temperature, the lower is the viscosity......
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Tanker vessel safety guideline - inert gas system
Vessels carrying cargos that produce hydrocarbon vapors require an inerting solution to eliminate the risk of explosions and fires in cargo tanks ( crude oil tankers, chemical tankers, product tankers, gas carrier, etc.). Inert Gas System is used to keep the oxygen content below 8%, a standard set by the International Maritime Organisation ( IMO )......
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Tanker vessel safety guideline - gas freeing procedure
The safest way to gas free an oil tank which is fitted with an inert gas system is to use a fan and vent the tank. Before entry, an O2 meter must be used and the tank must also be checked with an explosimeter. These meters must also be used while in the tank. The sketch shows a diagrammatic view of an explosimeter.....
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Precautions prior entering freezing zone - Check items in oil tankers operation
Ocean water freezes just like freshwater, but at lower temperatures. Freshwater freezes at 32 degrees Fahrenheit, but seawater freezes at about 28.4 degrees Fahrenheit, because of the salt in it. Due to the presence of many hostile conditions, any merchant ship, while entering a freezing sea area, significant challenges are being encountered concerning safety and reliability of navigation. Shipmaster should ensure that the following measures have been taken to prevent damage to Vessel, Machinery, Pipelines, and Equipment prior entry into areas with Freezing Conditions......
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Tanker vessel safety guideline - how to prevent oil spillage
There exists an inherent risk of oil spillage while handling oil cargo on board an oil tanker. However, good prevention initiatives can go a long way in reducing the risk of oil pollution from ships. In the event of any oil spillage from the ship, it is necessary to ensure that effective preparedness measures are in place to ensure a timely and coordinated response to limit the adverse consequences of pollution incidents involving oil and hazardous and noxious substances (HNS). We have summarized below some fundamental guideline for safe handling of oil cargo.....
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Tanker vessel safety guideline - tank cleaning procedures
Tank cleaning is the process of removing hydrocarbon vapors, liquids, or residues from cargo tanks onboard a tanker. Tank cleaning may be required for one or more of the following reasons:
To carry clean ballast, gas-free tanks for internal inspections, repairs, or before entering the dry dock. Also to remove sediments from tank top plating.
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Pumproom procedure
A pump room onboard an oil tanker contains the largest concentration of cargo pipelines of any space within the ship and leakage of a volatile product from any part of this system could lead to the rapid generation of a flammable or toxic atmosphere......
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Pumproom inspection for tankers
Correct use and setup of pump room(s) ventilation systems are essential to ensure that pump room(s) remain free from explosive or toxic atmospheres. Invariably the system fans are set up to make suction from below the bottom floor plates, i.e., from the bilge area. It gives full and proper circulation of all air in the pumproom to maintain a safe atmosphere......
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Crude oil washing for tankers
Crude oil washing (C.O.W.) is a system whereby oil tanks on a tanker are cleaned out between voyages not with water, but with crude oil - the cargo itself. The solvent action of crude oil makes the cleaning process far more effective than when water is used. However, such a technique of washing cargo tanks involves many hazards, and careful consideration will need to be made for safe planning and execution. ......
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Oil pollution prevention method
Any misuse of fuel oil can lead to significant claims and jeopardize the safety of the ship. The International Safety Guide for Oil Tankers and Terminals (ISGOTT) makes recommendations for the safe carriage and handling of petroleum cargo, which is seen as a fundamental part of overall Tanker Safety.
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General precautions for tankers
Navigating through thunderstorms should be avoided as far as practically possible by changing of course while cargo related activities are carried out which may result in discharge of flammable vapors. If the passing through thunderstorms cannot be avoided, all open cargo oil tank hatches should be closed until the vessel has passed through the thunderstorm The valves in the main vent lines may be temporarily secured in locked position, but must be opened immediately after passing through the thunderstorm........
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Tanker equipment and machinery
The Chief Engineer and Chief Officer shall jointly be responsible for the inspection and maintenance of the following cargo oil transfer equipment and machinery before entering port. The Chief Engineer shall prepare and maintain the equipment manuals of machinery and equipment, including critical components related to cargo operations including the procedures for their Emergency operation. All items should be in good operational condition.
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How to ensure safe working atmosphere onboard?
ShipBoard Safety Checklist- Safety & House Keeping Checklist....
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