Houston Supplier Ready to Offer Extended Bunker Quality Guarantees

by Ship & Bunker News Team
Friday September 7, 2018

Houston-based GCC Bunkers (GCC) is stepping up its bunker quality guarantees and has issued a new four-point quality commitment as part of ongoing efforts to rebuild customer confidence in the market's supply chain.

The move follows the recent spate of fuel contamination issues witnessed in the US Gulf, Panama, and Singapore.

"We are taking a proactive approach to improving transparency and helping ship owners regain confidence in the RMG-380 supply chain," GCC's Zach Stansbury, Senior Trader, told Ship & Bunker.

"Fuel buyer's need quality assurance that they are both securing a good fuel for their vessels, and that they are working with a supplier that takes every precaution necessary to protect those vessels."

In June, shortly after the first problems surfaced, GCC said it had engaged V-TIC Services Inc to go beyond the typical ISO 8217 testing with gas chromatography–mass spectrometry (GCMS) testing to ensure the quality of its bunkers were as expected.

In addition to providing buyers with that GCMS Analysis, GCC says for each delivery it will now not only guarantee all ISO 8217 specifications but also consider specification guaranties that go beyond ISO 8217.

"We will also not refuse to acknowledge key clauses of ISO 8217," Stansbury adds.

As reported last month, some suppliers have been quoting based on contracts with certain clauses from ISO 8217 removed, most importantly clause 5.3 that requires the bunkers to be "free from any material that renders the fuel unacceptable for use in marine applications."

Time Bars

As issues with bad bunkers typically do not surface until they are used, the industry-usual 15-day window to raise quality claims has also been a problem, with Peter Grunwaldt, Head of Bunkers at Hafnia, telling Ship & Bunker last month that certain suppliers had been hiding behind the time-bars to avoid dealing with claims.

GCC says it now offers a period of 30 days after delivery for buyers to raise quality issues that might occur after the fuel has been consumed.

And while the measures have been put in place specifically in response to the most recent problems, Stansbury sees this as just the beginning of a new era of focus on bunker quality.

"We have introduced the four-point quality commitment to our customers to ensure that they are not left to guess whether they will receive both the quality and service they require from a fuel supplier. This is relevant not only for today but also in the years ahead, as we believe that the 2020 transition will not see the end of quality issues," he said.

"Problems that have been seen this year will not go away with new fuels and will likely increase as we see new blends. Transparent, committed bunker supply is the key to buyers navigating this transition and minimizing problems."

GCC Bunkers' quality commitment in full is as follows:

  • Provide a full ISO 8217 Certificate of Quality and a GCMS Analysis prior to every delivery
  • Maintain a relationship with a key USGC research lab – V-TIC Services Inc – to prevent problems and provide technical guidance  
  • Offer a period of 30 days after delivery for buyers to raise quality issues that might occur after the fuel has been consumed
  • Maintain full insurance coverage for the rare case issues may occur with a customer's vessel