New Bunker Stem Audit Service Launched

Kaivan H Chinoy, principal, The Bunker Detectives / Ava-Marine

Bunker quantity dispute specialists The Bunker Detectives, a division of Ava-Marine, this month launched a Bunker Stem Audit Service. Ship & Bunker talked to principal Kaivan H Chinoy about the new service.

Why did you introduce the new service?

Since the official launch of Bunker Detective in March of 2013, we have been requested by numerous clients regarding our company procedures and methods in loss prevention during "bunker stem operations" and to provide a dedicated "audit" service prior stemming bunkers so that the ship operators could ascertain the exact fuel quantity onboard.

Effective September 1, 2013 to prevent bunker misappropriation AVA Marine's exclusive division 'Bunker Detective' through its global network of highly skilled marine surveyors consisting mainly of ex Master Mariners and Chief Engineers are able to provide these audit services globally and in particular in all major bunkering hubs like Singapore, Fujairah, Panama, Rotterdam etc.

What is a Bunker Stem Audit?

To put it simply, these audits are undertaken onboard the vessel prior to stemming bunkers to prevent bunker misappropriation.

At the present market rate, bunker cost is one of the largest operating expense incurred in a T/C voyage.

With such high costs involved, it becomes imperative for the charterers to know the exact bunker quantity onboard at the time of supplying bunkers.

How the audits are conducted?

Bunker Stem Audits are carried out by our experienced marine surveyors on behalf of ship operators to find concealed (hidden) bunker fuel onboard.

To find concealed fuel someone qualified has to go on board the vessel and get their hands dirty essentially looking for magic pipes, unauthorized connections; tampered gauging equipment, doctored fuel gauges etc.

In order to prevent fuel losses 'Bunker Detective' experienced surveyors offer impartial, independent quantity measurement inspection services for marine fuels, issuing detailed bunker survey reports to ascertain the exact fuel quantity onboard at the time of survey and to report any bunker fuel shortages.

The following scenarios will indicate why a stem audit is an essential loss control tool – especially for operators with a large fleet.

How do Bunker Stem Audits help with loss control tool?

The malpractices during bunkering operations which we see and hear about though quite prevalent with bunker suppliers; but on many occasion we have come across situations where the receiving vessel will be as much as involved as the supplier in these dubious practices.

Often we have found that the vessel would under-declare fuel quantity which is then either sold back to the barge supplier or simply kept hidden on the vessel until an opportunity comes along to profit from this.

For example: An order for 1000 metric tons of FO is placed at the next bunkering port - the vessel has an excess of 50 metric tons (un-declared). Now when the supply barge comes alongside (through prior negotiations) the vessel would deliberately short-receive (or barge will deliberately short-supply) 50 tons.

In other words the actual supplied quantity would be 950 tons but on the BDN it would be reported as 1000 tons and the operator will be invoiced based on this BDN quantity.

The short-received (or short- delivered bunker) profit will be shared between the supplier and the vessel. In the end it's the operator who is affected – suffering the loss twice (50 tons + 50 tons).

You can learn more about all our services on our website at www.bunkerdetective.com.