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Thu 22 Sep 2016, 07:23 GMT

New guides to help avoid bunker disputes and handle claims


Publications provide advice on how to avoid bunker disputes and how to handle them if a claim arises.

A pair of new publications have been published by West of England P&I providing advice on how to avoid bunker disputes and how to handle them if a claim arises.

The Loss Prevention Bulletin 'Bunker Quality Disputes Part 1: Practical and Technical Measures' deals with the actions and steps that should be considered in order to avoid off-specification bunker disputes, whilst the Claims Guide 'Bunker Quality Disputes Part 2: Legal and Claims Handling Considerations' sets out the legal and claims handling steps that should be taken in the event of an off-specification bunker claim arising.

Avoiding disputes

"When a vessel has been provided with off-specification bunkers the consequences can be severe, possibly leading to the breakdown of the vessel's machinery. Even if off-specification bunkers do not result in a breakdown, the loss of time and expenses incurred if it is necessary to de-bunker or deviate to stem fresh bunkers can be significant," West of England P&I explains in the Loss Prevention Bulletin.

The document addresses onboard procedures for fuel sampling, the bunker delivery note (BDN), onboard fuel testing, fuel blending and storage. It also takes a look at the factors that can lead to off-specification and/or contaminated fuel.

Handling claims

"Off-specification bunkers can potentially give rise to claims under an owner's hull and machinery insurance as well as under Club cover, whether as a FD&D claim against time charterers or bunker suppliers or a P&I claim such as for delay in delivery of cargo if that causes the cargo to deteriorate. There may also be a charterer's liability to owners for providing off-specification bunkers," West of England P&I says in the Claims Guide.

This report looks at the contractual obligations under a time charter party, handling off-specification bunker claims and common allegations and defences to off-specification bunker claims.

Links to the two documents have been provided below.

Loss Prevention Bulletin - 'Bunker Quality Disputes Part 1: Practical and Technical Measures'

Claims Guide - 'Bunker Quality Disputes Part 2: Legal and Claims Handling Considerations'

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