Two Guides for Bunker Quality Disputes Issued by West of England P&I

by Ship & Bunker News Team
Thursday September 22, 2016

The West of England P&I club has announced the release of two new guides to assist owners and operators in dealing with bunker quality disputes.

The first of the two publications is a Loss Prevention Bulletin "Bunker Quality Disputes Part 1: Practical and Technical Measures," which addresses actions and steps to be considered to prevent off-specification bunker disputes.

The second publication is a Claims Guide "Bunker Quality Disputes Part 2: Legal and Claims Handling Considerations," which lays out steps in legal and claims handling that should be followed in the event of an off-specification bunker claim arising.

"When a vessel has been provided with off-specification bunkers the consequences can be severe, possibly leading to the breakdown of the vessel's machinery," explained West of England.

"Even if off-specification bunkers do not result in a breakdown, the loss of time and expenses incurred if it is necessary to de-bunker or deviate to stem fresh bunkers can be significant."

The club notes that off-specification bunkers can lead to claims under an owner's hull and machinery insurance and other cover, "whether as a FD&D claim against time charterers or bunker suppliers or a P&I claim such as for delay in delivery of cargo if that causes the cargo to deteriorate."

West of England also notes that a charterer may also have liability to owners in relation to providing off-specification bunkers.

Earlier this year, Ship & Bunker reported that Veritas Petroleum Services (VPS) and INTERTANKO voiced concern over proposed revisions to the ISO 8217 specifications for marine fuels, suggesting that some changes may undercut the efforts of the shipping industry toward improving fuel quality.