Bunker Quantity Survey

DNV Petroleum Services

Revision 0 : Feb 06

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 MARPOL Annex 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.

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 of the 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 a quantity 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 as evidence of the survey operation. The photographs include those of the vessel, bunker tanker, sampling equipment and location.

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 to install 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.

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 1800.201

DNVPS 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 multiple records 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 ports around 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.

DnvPS Benefits at a glance BQS Clients can avoid costly disputes from short

deliveries.

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 provide information 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.

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 HQ Regional Office & LaboratorySingapore27 Changi South Street 1Singapore 486071Tel: + 65 6779 2475Fax: + 65 6779 5636Tlx: RS 39659 / 28597 DNVPSEmail: singapore@dnvps.com

DNVPS Regional OfficeLondon, UKPalace House3, Cathedral StreetLondon SE1 9DEUnited KingdomTel: + 44 0207 357 6080Fax: + 44 0207 716 6736Email: london@dnvps.com

DNVPS Regional Office & LaboratoryFujairah, UAEPort of Fujairah P.O. Box 1227United Arab EmiratesTel: + 971 9 2228152Fax: + 971 9 2228153Email: fujairah@dnvps.com

DNVPS Regional Office & LaboratoryRotterdam, The NetherlandsHaastrechtstraat 73079 DC RotterdamThe NetherlandsTel: + 31 10 292 2600Fax: + 31 10 479 7141Email: rotterdam@dnvps.com

DNVPS Regional Office & LaboratoryOslo, NorwayVeritasveien 1N-1322 Hovik, NorwayTel: + 47 67 57 9900Fax: + 47 67 57 9393Tlx: 76 192 VERIT NEmail: dnvps.oslo@dnv.com

DNVPS Regional Office & LaboratoryHouston, Texas, USA318 North 16th StreetLa Porte, Texas 77571, USATel: + 1 281 470 1030Fax: + 1 281 470 1035Email: houston@dnvps.com

DNVPS/BQSB/V1R0/0206