Bunker Quality Claims In 2020 – Issues To Consider

In recent years the shipping industry has faced a significant number of bunker quality claims, most notably arising out of the so-called "Houston problem", where there were numerous complaints that contaminated fuel had caused engine problems, including sludge blocking fuel filters and the sticking and seizure of fuel injection components. In the most serious cases, there were reports of vessel blackouts and groundings. The global impact of shipping problems was also evident; whilst complaints regarding the "Houston problem" were originally concentrated around the US Gulf region, complaints regarding off-specification fuel quickly spread across the globe, including to Panama and Singapore.

With the IMO 2020 sulphur cap now in force as of 1 January 2020, the shipping industry faces a new set of potential issues regarding bunker quality. Given that a significant number of vessels have not been fitted with exhaust gas cleaning systems or "scrubbers" (enabling the vessels to consume high sulphur fuels in compliance with the new limits in MARPOL Annex VI), there is increased demand for low sulphur fuel, and prices have risen accordingly.

However, concerns have been raised about the quality of some blends of low sulphur fuels, and in particular, the potential impact on vessels which may not have implemented comprehensive fuel management procedures to store and consume low sulphur fuel.

Owing to different fuel blends, the compositions and properties of low sulphur fuel on the market can vary widely. Experts have raised concerns about the level of catalytic fines (catfines) which can often be at relatively high levels in non-distillate low sulphur fuels, owing to the refining processes and blends with cutter stock to reduce sulphur content. If catfines levels are high and/or vessels do not have adequate purifiers in operation, then these small, hard particles can embed in soft metal surfaces in fuel pumps, injectors and cylinder lines in engines, and act as an abrasive, dramatically increasing the rate of wear of engine components, with the risk of wear beyond maximum limits occurring in weeks.

Concerns have also been raised about the stability levels of blended low sulphur fuel, and the risk that asphaltene content may precipitate out of solution, causing the formation of sludge which can block engine filters and pipes, leading to the potential loss of power and propulsion.

There are also numerous potential issues which could arise with the enforcement of the lower sulphur limits in MARPOL Annex VI, which could result in legal claims. Potential claims could arise where the MARPOL bunker sample tests on specification, but other samples when tested, generate results which narrowly exceed the prescribed 0.50% m/m limit. From 1...