OW Bunker's Quality Claims Drop Below 1%

Christensen said distributors can take initiative to reduce risk

OW Bunker has reduced quality claims against its physical product to 0.9 percent for the first quarter of 2014, down from an average of 1.6 percent in 2013, the company said in an emailed statement.

The company introduced its own Global Quality Standard (GQS) at the end of 2012 and set a goal of reducing claims below 1 percent.

GQS includes a specification analysis on physical product orders that is delivered to customers before outside testing, ensuring transparency.

"It is pleasing to see the steps that we have taken as a business come to fruition and begin to set new benchmarks for fuel quality within our industry," said Jan Christensen, vice president of OW Bunker's physical division.

"In addition to providing customers with peace of mind, it also reinforces how we, as distributors, can take more responsibility and control within the supply chain to manage risk, ensure operational efficiencies and deliver real value for money that goes beyond just the price of fuel oil."

OW Bunker has also established a quality control department to gather data on potential issues and common trends.

Jens Maul Jørgensen, chairman of the International Bunker Industry Association (IBIA), said the results are "a good example of how bunkering companies can take responsibility for implementing new, practical measures that mitigate against the risk of off-spec fuels and increase accountability for ensuring quality."

"IBIA's objective is to help the industry to meet the serious challenge of off-spec bunkers, and work collaboratively with all stakeholders within the marine fuel supply chain to improve quality standards and professionalism at every level," Jørgensen said.

"Part of this approach is to encourage transparency within the industry, and communicate 'good practice' such as that developed by leading companies such as OW Bunker."

The IBIA said earlier this year that off-spec bunkers reached an all-time high of 25 percent in 2013.