Introduction
In time charter-parties, a vessel is usually described as capable of steaming fully laden, under good weather conditions, at about "x" knots on a consumption of about "y" tons of fuel oil and "z" tons of diesel oil. The owners' obligation is to ensure that at the time the charter is entered into and during the period of the charter the vessel complies with this description.
This chapter examines the following:
Evidence required from the Vessel in underperformance or overconsumption claims:
- Speed,
- Consumption of fuel,
- Checklist :
Basic data,
Factors affecting performance;
Evidence required from the Vessel in disputes arising in connection with the supply of substandard bunkers:
- Procedure at commencement of bunkering,
- Procedure if suspected that substandard bunkers have been placed on board,
- Procedure if substandard bunkers are used and damage results.
In the appendix to this chapter, a case history is provided.
Speed and Consumption of Fuel
Time charterers frequently bring claims against owners for underperformance, which means that the vessel is not complying with the speed specifications described in the charter-party. Underperformance claims often go hand in hand with claims for "overconsumption" which means that the vessel is using more fuel per day than specified in the charter-party. In order to defend these claims, owners rely heavily on accurate and comprehensive data collected by the Master and the officers.
Speed
With regard to underperformance claims, the basic data required are listed in the checklist. This information is generally recorded in the deck logbook.
In order to check whether the vessel is performing as described in the charter-party, the Master should use only information acquired under good weather periods as specified in the charter-party. This type of information is not always easy to gather, and in practice the Master may have to make allowances for such factors as a particular sea state, changes in course, slow steaming, stoppages, or the effect of tidal waters and currents.
The basic data, which are customarily gathered on a day to day basis, may be insufficient to determine accurately the vessel's performance. The Master may find it helpful to establish a more frequent method of collecting information, for example, on a watch by watch basis.
Consumption of Fuel
The basic evidence required to defend overconsumption claims is recorded in engine logbooks. As in the case of claims for underperformance, it is important to stress the necessity for accurateand frequent entries in engine logbooks. For example, the crew ideally should take flow rate meter readings for every watch. The Master should also keep careful records of periods when the vessel is instructed to proceed at an economical speed or when the vessel uses diesel oil in congested waters.
Many time charter-parties state that "domestic" consumption of fuel is for owners' account. Domestic consumption includes fuel used for heating, cooking, air conditioning, fresh water generating, and any other electrical power used solely by the officers and crew. In order to estimate the amount of domestic consumption of fuel, the vessel should maintain records of times when the air conditioning system, which is a major consumer of electricity, is in operation.
Checklist
Basic Data
1. Direction of wind and sea;
2. Beaufort wind force;
3. Swell;
4. Direction of predominant swell;
5. Height and length of waves;
6. Propeller revolutions per minute;
7. Noon position;
8. Observed speed - if an accurate position fixing device is fitted;
9. Log speed;
10. Air and sea temperature;
11. Barometric pressure;
12. Vessel's course;
13. Fuel consumption - flow rate meter readings;
14. Soundings of fuel tanks in port;
15. Periods when vessel proceeding at economical speed;
16. Periods when vessel uses diesel oil in congested waters;
17. Periods when air conditioning systems are in use;
NOTE: Ideally, data should be collected on a watch by watch basis.
Factors Affecting Performance
1. Alterations of course;
2. Speed reductions;
3. Heavy weather;
4. Restricted visibility;
5. Manoeuvring;
6. Hull and propeller damage;
7. Changes in trim or displacement;
8. Tank cleaning in progress;
9. Presence of ocean currents.
Bunker Quality Disputes
In recent years there has been a general deterioration in the quality of fuel supplied for bunkers. Substandard fuel is one major cause of loss of speed and overconsumption of fuel, and may also have a detrimental effect on the vessel's machinery. The Master should take care to ensure that the bunkers supplied match the specifications required by the vessel. If poor quality fuel has been supplied, the Master should follow the correct procedures, which are listed below in order to minimize damage. In case the fuel does cause engine damage and any subsequent expense and loss of time, it is important that the Master records all the relevant information listed below in order to establish the cause of the damage, particular attention being given to the retention and preservation of samples. Finally, in addition to thorough reporting procedures, the Master should promptly report the matter to owners.
Procedure at Commencement of Bunkering
1. The Chief Engineer should be responsible for supervising bunkering and should liaise closely with the duty deck officer;
2. The flash point, viscosity and other characteristics of fuel supplied should be checked to ensure that the fuel is suitable for the vessel - If the fuel fails to conform with the specifications required by the vessel, the Master should notify in writing the bunker supplier and charterers' port agents (sample letters which should be sent to bunker supplier and charterers' port agents are provided);
3. The Chief Engineer and Barge Master should check the security of the hose couplings on the bunker barge and the receiving vessel, and should agree on the pumping rate Failure to observe these precautions may lead to oil pollution and result in heavy fines and possibly even the arrest of the vessel;
4. New bunkers should be segregated from old bunkers on board if bunkers are mixed, a mixed sample of the old and new fuels must be tested for compatibility;
5. New bunkers should be tested for the presence of water after loading The results should then be checked against engine manufacturer's specifications;
6. Representative samples, which should be marked and sealed, should be taken at the ship's manifold, and the Master should request in writing the supplier or the charterers' port agents to attend during sampling (a sample letter is provided ) -If the supplier or port agents fail to attend, the Master must make a protest in writing (a sample letter is provided).
Procedure if Suspected that Substandard Bunkers have been Placed on Board-
1. Records must be kept of which tanks the bunkers were placed in on delivery and whether or not there was oil in the tanks prior to delivery, and if so, full details must be given;
2. The location of the tank in which the suspect bunkers have been kept must be recordedand full details of all movement of bunkers between tanks must be noted;
3. Details of ullages must be noted and copies of bunker receipts for the new bunkers must be preserved
4. All Notes of Protest and the engine and deck logs must be preserved;
5. The sealed sample taken during bunkering must be retained and samples from previous bunkers kept safe on board until specific instructions received from owners to dispose of thesamples;
6. A note must be kept of the following
a. the Chief Engineer and other crew members involved in the bunkering operation,
b. the names of those present at the time the bunker samples were taken,
c. the crew members involved in correcting any problems associated with substandardbunkers;
7. Owners must be notified promptly
Procedure if Substandard Bunkers are Used and Damage Results:
1. The Master should keep records of the following :
a. when was fuel first burned,
b. what were the immediate manifestations of the problem,
c. what action was taken to reduce the problem,
d. was the action effective,
e. when were repairs carried out and under whose supervision,
f. what parts were overhauled or renewed,
g. when was contaminated fuel last burned,
h. disposition of contaminated fuel,
i. performance of engine once vessel had ceased to burn contaminated fuel;
2. If available, all contemporaneous reports of repairs from owners, charterers, enginemanufacturers and underwriters' surveyors should be kept;
3. Any damaged machinery parts should be kept for future inspection;
4. Photographs should be taken of damaged parts when discovered.
APPENDIX
Case History concerning Main Engine Damage due to Substandard Fuel
The subject vessel, a bulk carrier (117,950 DWT; LOA: 264m; Beam: 40m; Main Engine B&W 9K 8 4EF), was let on an NYPE Form time charter. She bunkered at Rio de Janeiro, with fuel stemmed by charterers. The crew members followed routine bunkering procedure, which included the following on board tests: specific gravity, viscosity, compatibility, water, and pourpoint. The test results were all within acceptable limits. The crew also sent by air courier a sample for laboratory analysis-
The vessel continued her voyage and proceeded for loading at Tubarao for Burnside, and then proceeded to Norfolk for loading. At Norfolk, excessive cylinder liner/piston ring and fuel pump wear was discovered in all cylinders. The vessel was off-hire for one day while repairs were carried out.
After some delay caused by incorrect shipment by the agent at Rio, the laboratory analysis of the bunker sample was received. The results indicated sediment and catalytic fine contamination(Sample 1:36PPM silicon; Sample 2: 77PPM; Sample 3: 67PPM). Further analyses of the sludge from the scavenge space and lubricating oil purifier confirmed this conclusion.
The time charterers were put on notice. The vessel was ordered not to exceed 50% MCR on the main engine to allow for maximum purification. However, the maximum purification was not effective and resulted in a further reduction of speed on the vessel's next voyage to Sepetiba, Brazil. The vessel was ordered to stop using contaminated fuel and complete the voyage on diesel oil.
512 MT of contaminated fuel were segregated for pumping ashore at a later date. Time charterers were informed of owners' action, and were asked to increase the next stem. Owners arranged for the fuel to be pumped ashore at a port in Brazil, but the oil company refused to accept the fuel at a reasonable price. The fuel, finally, was pumped ashore at a later port, but by this time had caused a loss of DWT capacity for charterers.
Although owners held charterers responsible for the consequences of using the contaminated fuel,the time charterers argued successfully that the bunkers supplied conformed with "International Specifications" and the charter-party terms. The charter-party contained no bunker specificationsother than calling for 180 CST fuel oil. Furthermore, details of the engine were not provided in the charter-party description clause.
Owners suffered a loss in excess of $100,000, which included off-hire, spare parts, and replacement fuel and diesel oil. Although owners were able to recover $50,000 from the proceeds of the sale of contaminated oil, they were unable to recoup the rest of their losses from charterers, primarily because of the lack of clear bunker history.
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