Bunker Quantity Survey

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    BUNKER QUANTITY SURVEY

    DNV Petroleum Services

    Revision 0 : Feb 06

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    Bunkers are typically the largest contributor to the operational costs of a ship,

    with the physical transfer of fuel often taking place thousands of miles away

    from the contracting offices. As neither the buyer nor the seller is present to

    witness the bunker quantity transfer and sampling procedures on board, any

    post-delivery investigation on quantity shortages is usually futile and inconclu-

    sive. Protests, demurrages, physical shortages, legal fees, management time, loss

    of goodwill, inconvenience and stress add to overall costs.

    DNV Petroleum Services (DNVPS)Bunker Quantity Surveys (BQS)

    Responding to these concerns, DNV Petroleum

    Services, the world leader in bunker fuel testing,

    offers an impartial and independent Bunker Quantity

    Survey through its own in-house surveyors in major

    bunkering ports worldwide.

    DNVPS BQS surveyors provide comprehensive and

    credible documentation of delivered quantity, and

    representative sampling and compliant with MARPOLAnnex VI requirements. As a complementary service

    to the DNV Fuel Quality Testing Programme, our

    surveyors also facilitate prompt dispatch of fuel oil

    samples to the nearest DNVPS laboratory.

    Given that bunkers account for 30-50% of the vessels

    operating costs, it is in the fuel buyers interest to

    engage a DNVPS surveyor for quantity verification. In

    a bunker dispute, the fuel buyer will be well placed to

    substantiate his claims.

    DNVPS is the first company to implement a world-wide Code of Practice with regular on-the-job quality

    assurance audits to ensure a high level of integrity and

    service performance. We actively promote best prac-

    tices in the trade.

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    Procedures on the Vessel

    To avoid delays to the bunker delivery, the DNVPS

    BQS surveyor will board the vessel at least one hour

    before the bunker tankers arrival to complete the

    initial vessel tank gauging measurements.

    Procedures on the Bunker Tanker

    All the bunker tankers tanks, including non-nominat-

    ed bunker tanks will be measured in the presence ofthe ship and supplier representatives and the DNVPS

    surveyor will instantly record the readings on the

    gauging tickets. If a short delivery arises, these records

    together with non-cargo tanks declaration can be used

    in the subsequent investigation.

    When all initial bunker tanker measurements are

    done, the transfer may start. On completion of the

    bunker transfer, the DNVPS surveyor is required to

    close the measurement on the bunker tanker first

    to determine the quantities supplied. If there is aquantity difference between the vessel and the bunker

    tanker exceeding DNVPS BQS Code of Practice re-

    quirement, the surveyor will carry out a dispute inves-

    tigation after consulting the Chief Engineer and the

    supplier representative.

    Scope of Service

    DNVPS surveyors remain onboard for the entire

    duration of the bunkering ensuring continuous su-

    pervision and support.

    DNVPS requests all clients to have their Chief Engineer

    or his representative present during the extensive in-

    spection and gauging of all the bunker tanks on the

    vessel and the bunker tanker.

    Accurate assessment of the opening soundings on

    both the vessel and the bunker tanker is critical to the

    determination of the actual fuel quantity transferred.

    In order to perform a thorough job, sufficient time

    should be allocated. The measurements may take up

    to an hour on both the vessel and bunker tanker.

    Our surveyors are required to use their own measuring

    tape and digital thermometers instead of third party

    instruments which may introduce uncertainties.

    Water finding paste is used routinely to detect free

    water. All vessel and bunker tanker measurements are

    recorded on the spot in the DNVPS Gauging Ticket,

    a copy of which will be given to each of the parties

    present. In the event of uncertainty or during routine

    quality control checks, these independent records

    can be recalled for verification. The DNVPS gauging

    ticket and recording procedures provide an audit trail

    which detects alteration of figures and other malprac-

    tices.

    Where permissible, digital photographs are taken asevidence of the survey operation. The photographs

    include those of the vessel, bunker tanker, sampling

    equipment and location.

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    Sampling

    According to Incoterms 2000 published by the Inter-national Chamber of Commerce, the seller fulfils his

    obligation to delivery when the goods have passed

    over the vessels rails.

    In addition, MARPOL 73/78 ANNEX VI requires a

    representative sample to be taken at the receiving

    vessels bunker manifold.

    As a bunker delivery is a commercial transaction which

    also requires the determination of fuel properties,

    DNVPS advocates custody transfer sampling at the re-

    ceiving vessels manifold. Vessels are recommended toinstall a line sampler to collect representative samples.

    Line samplers can be purchased from DNVPS.

    During the bunker transfer, the DNVPS Code of

    Practice requires the surveyor to take a representative

    sample at the point of custody transfer.

    Reporting

    Based on the suppliers bunker receipt density, calcu-

    lations are carried out using ASTM Tables 54B and

    56 to determine the preliminary weight of the fuel

    transferred.

    However, DNVPS BQS requires actual density, viscos-

    ity and water for conclusion. In order to do this, the

    sample is promptly dispatched to the nearest DNVPS

    laboratory for testing.

    The results for density, viscosity and water of the fuel

    sample are factored into the final recalculation of

    the actual weight of the fuel delivered. The DNVPS

    Bunker Survey Report is then transmitted by email or

    fax to the client.

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    Volume at

    15C (M3)

    Density at

    15C (kg/m3)Mass* (M/tons)

    Weight Factor

    (kg/m3)

    Weight

    (M/tons)

    Bunker Delivery Note (BDN) 1822.804 988.7 1802.206 987.6 1800.201DNVPS Measurement

    (Bunker Tanker)1822.805 957.3 1744.971 956.2 1742.966

    Difference 0.001 -31.4 -57.235 -31.4 -57.235

    DNVPS Measurement (Vessel) 1832.753 957.3 1754.494 956.2 1752.478

    BDN value Tested value Differential Calculation**Commercial

    losses

    Density 988.7 957.3 57.235 M/tons 57.235 x USD 300 USD 17,170

    Viscosity*** 180 380 USD 5 USD 5 x 1742.966 USD 8,715

    Water Trace 3.4% 3.4% 0.034 x 1742.966 x USD 300 USD 17,778

    Total $ Loss USD 43,663

    * Mass in our Report refers to Weight in Vacuo but commercial fuel transactions are typically based on Weight in Air given here as Weight.** Bunker cost @ USD 300 per metric ton.*** Price differential between 180 and 380 cSt(mm2/s) fuel @ USD 5.

    BQS Experience Database

    The DNVPS BQS experience database has multiplerecords of bunker tanker performance in a specific

    port and if there are no dubious practices, the conclu-

    sion is typically based on the bunker tanker out-run.

    Such dubious practices may include non-disclosure

    or incomplete stock movement records, questionable

    calibration tables, gravitation of bunkers among tanks,

    unpacked pipe-line from shore tanks and adjusted

    delivery figures.

    However, DNVPS also has an extensive database on

    vessels that have been surveyed in multiple portsaround the world and exhibit good bunker experi-

    ence factor. The importance of extensive vessel meas-

    urements before and after delivery, in conjunction

    with the vessels bunker experience factor, justifies

    DNVPS conclusion based on the vessels out-turn in

    some short delivery situations.

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    DNVPS Benefits at a glance

    BQS Clients can avoid costly disputes from shortdeliveries.

    DNVPS provides an independent and credible

    verification of bunker quantity delivered, using

    qualified and experienced bunker surveyors

    applying DNVPS Code of Practice.

    DNVPS provides comprehensive and accurate doc-

    umentation as evidence in potential legal claims.

    As opposed to other survey companies, DNVPS

    surveyors stay onboard during the entire duration

    of the bunkering operation. This ensures continu-ous supervision of the entire bunkering operation.

    DNVPS surveyors will make certain that representa-

    tive sampling is carried out and assist the ship crew

    to comply with MARPOL Annex VI requirements.

    While most other survey companies base their

    weight calculations on the suppliers bunker receipt

    density, DNVPS calculates the weight of the fuel oil

    delivered based on actual density of representa-

    tive samples tested in DNVPS laboratories. Further,

    DNVPS tests representative samples to provideinformation on fuel viscosity (grade) and water

    content. This assists clients in avoiding commercial

    losses related to inaccurate bunker delivery receipt

    values as well as water content.

    DNVPS uses in-house surveyors, permanently

    employed by DNVPS, for surveys in major bunker

    ports world wide.

    DNVPS is the only bunker survey company to

    conduct regular on-the-job quality audit by senior

    Quality Auditors to maintain high service standards.

    DNVPS provides onboard hydrogen sulphide (H2S)

    monitoring.

    DNVPS provides objective conclusion when there is

    a short delivery, based on comprehensive documen-

    tation and an extensive BQS experience database.

    BQS reports are presented in user-friendly PDF

    format with colour codes for quick identification of

    problem, executive summary, and relevant pictures

    of the bunker survey. The report also includes doc-umentation of sampling procedures and MARPOL

    Annex VI compliance.

    DNVPS bunkers survey are available in major

    bunker ports worldwide.

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    DNV is a global provider of services for managing risk. Established in 1864, DNV is

    an independent foundation with the objective of safeguarding life, property and the

    environment. DNV comprises 300 offices in 100 countries, with 6,400 employees.

    DNVPS Worldwide HQRegional Office & LaboratorySingapore

    27 Changi South Street 1Singapore 486071Tel: + 65 6779 2475Fax: + 65 6779 5636Tlx: RS 39659 / 28597 DNVPSEmail: [email protected]

    DNVPS Regional OfficeLondon, UKPalace House3, Cathedral StreetLondon SE1 9DEUnited KingdomTel: + 44 0207 357 6080Fax: + 44 0207 716 6736Email: [email protected]

    DNVPS Regional Office& LaboratoryFujairah, UAE

    Port of FujairahP.O. Box 1227United Arab EmiratesTel: + 971 9 2228152Fax: + 971 9 2228153Email: [email protected]

    DNVPS Regional Office& LaboratoryRotterdam, The NetherlandsHaastrechtstraat 73079 DC Rotterdam

    The NetherlandsTel: + 31 10 292 2600Fax: + 31 10 479 7141Email: [email protected]

    DNVPS Regional Office& LaboratoryOslo, Norway

    Veritasveien 1N-1322 Hovik, NorwayTel: + 47 67 57 9900Fax: + 47 67 57 9393Tlx: 76 192 VERIT NEmail: [email protected]

    DNVPS Regional Office& LaboratoryHouston, Texas, USA

    318 North 16th Street

    La Porte, Texas 77571, USA

    Tel: + 1 281 470 1030Fax: + 1 281 470 1035

    Email: [email protected]

    DNVPS/BQSB/V1R0/0206