Preventing Bunker Fuel Theft: Enhancing Vessel Performance

Introduction:

Bunker fuel theft remains a significant challenge in the shipping industry. Implementing effective strategies to prevent such theft can enhance vessel performance and optimize operational efficiency for increased profitability. Below, we explore the main topics related to bunker fuel theft, including effective prevention strategies, the importance of accurate measurements, and how enhancing vessel performance can mitigate risks.

Bunkering Malpractices in the Shipping Industry

A common question is why flow meters fail to detect air introduced into the system. Most existing flow meters are either incorrectly sized or outdated, measuring only volume rather than the actual mass of fuel delivered. When air is present, it is misregistered as volume. Fortunately, advanced flow meters that measure true mass are available. We will explore the issue of Cappuccino bunkers further in this guide.

Understanding the Fuel Density & Weight Relationship

Marine fuel is sold by weight (mass) but delivered by volume, making it essential for bunker receipts to be signed “For Volume Only.” Always ensure that weight is determined after testing representative samples, as the density provided on the supplier’s bunker delivery note (BDN) may be inaccurate. The true weight of fuel is only confirmed post-testing by an independent authority. Therefore, obtaining fuel samples both onboard and from the barge is crucial. If density cannot be verified, sign the BDN only for volume, and issue a letter of protest if there are concerns.

Understanding the Fuel Temperature & Volume Relationship

Petroleum products experience significant thermal expansion, which can impact the transfer or purchase of thousands of tons of fuel. Barge operators may under-report temperatures during initial gauging and over-report at closing, making it vital for ship officers to check bunker tank temperatures at both stages and periodically during pumping. Always verify temperatures with gauges at the barge and ship's manifold. Be cautious of potential inaccuracies due to tampering or faulty gauges, as incorrect readings can lead to substantial financial losses.

The Cappuccino Bunkers: (also sometimes known as the Coca Cola Effect)

The Cappuccino effect refers to the frothing caused by compressed air introduced through the delivery hose, which can mislead operators into thinking they received the full fuel quantity. Once the air settles, a shortfall is revealed, potentially resulting in significant financial losses. Most flow meters currently in use cannot detect the presence of air, as they measure only volume, not mass. However, advanced flow meters are available that can accurately measure the true quantity of fuel delivered.

Fuel Delivered with High Water Content

Bunker fuel typically contains very low water levels, around 0.1-0.2% by volume, while ISO 8217 standards allow for a maximum of 0.5% v/v. Water may enter the fuel due to equipment damage or condensation, but deliberate injection cannot be ruled out. If excessive water is detected, an immediate letter of protest should be issued. Accurate water content measurement occurs only after settling. High water levels can lead to significant issues, including costly removal and reduced fuel efficiency. Always collect fuel samples during bunkering and avoid signing for unverified samples.

Inter-Tank Transfers (Gravitating of Fuel)

During the opening gauge, fuel can be transferred from a high-level tank to a low-level or empty tank by gravity, leading to double measurement of the same fuel quantity. This practice can result in substantial shortfalls for the vessel, while the barge claims full delivery. Once bunkering begins, tracing the missing fuel becomes nearly impossible. To mitigate this, the attending surveyor or vessel representative must re-gauge all tanks systematically after the initial measurement. Precautionary re-gauging of the first tanks used during transfer is also recommended.

Quantity Measurements by Flow Meter Only

Occasionally, barges may assert that the soundings and ullage ports have been sealed by customs or otherwise rendered inaccessible, pressuring the vessel to rely solely on the volumetric flow meter for measurements. This tactic could signal potential unscrupulous behavior from the barge master, indicating that other deceptive practices may be at play. Therefore, it is crucial never to agree to depend solely on flow meter readings for fuel delivery and to issue a letter of protest whenever doubts or concerns surface.

Pumping/Mixing Slops into Bunkers

While instances of introducing slops and contaminants into fuel deliveries have become less frequent due to tighter sampling procedures, they still pose significant risks. Such practices can lead to reduced actual fuel amounts and create potential engine problems that may only become evident after independent testing of fuel samples. In cases of short supply disputes, a barge might add sludge or water to compensate. It is vital to witness and collect samples throughout the delivery process, ensuring that fuel is isolated in separate tanks until testing confirms its quality. Should a second pumping occur, re-sampling must be conducted on both the barge and vessel to check for contaminants, as contamination can lead to costly repairs.

Empty Tanks: Un-Pumpable Fuel (Zero Dip Volume Application)

Be cautious when a short delivery occurs, as empty tanks may still contain substantial pumpable fuel. Do not trust the supplier's claims without verification. Under the zero dip volume application principle, the bunker surveyor should insist that the zero dip volume of the tanks be included in calculations. Sufficient bunkers must be retained to ensure they contact all tank sides and to avoid miscalculations.

Inflated/Deflated Tank Volumes

The oil level indicated on the tape or bob should match the color and viscosity of the oil in the tank. Gauging levels can be artificially inflated by pouring diesel into the sounding pipe or injecting compressed air, resulting in inaccurate readings. Conversely, pouring paint thinner can deflate readings by washing off oil level markings. Always verify the sounding tape levels and re-gauge if necessary.

Tampering with Gauging Equipment

The condition of sounding tapes must always be verified, as they can be tampered with in various ways. Common methods include altering gauging elements, using incorrect bob sizes, or switching sounding bobs. Additionally, cutting and rejoining tapes can lead to non-linear readings. Always check for a calibration certificate for the gauging equipment in use, and if uncertain, issue a letter of protest.

Flow Meter/Pipe Work Tampering

Bunker barges equipped with flow meters should undergo thorough checks to ensure proper functioning. This involves verifying the validity of the calibration certificate and confirming that the seal on the flow meter is intact. Additionally, one must be vigilant for unauthorized piping, such as bypass lines, which could allow fuel to be registered twice through the flow meter. Consulting the barge piping diagram is advisable if there are any doubts, and in any situation where concerns arise, issuing a letter of protest is essential.

Questionable Tank Calibration Tables

It is essential to verify that the sounding and ullage tables are approved by the Classification Society and carry the necessary endorsements. It is not uncommon for multiple sets of sounding books to exist, and modifications that benefit the supplier are always a possibility. Signs of tampering may include inserted pages or corrections, as well as variations in print or paper type. Occasionally, a barge may present a new calibration table following structural modifications or repairs. It is crucial to ascertain the reason for any new calibration tables and ensure that they are Class Certified, as the same scrutiny applies to list and trim correction tables, which could also be easily modified to favor the supplier.

Under-Declaring Actual ROB and Deliberate Short-Supplying of Fuel

Ship operators must ascertain the exact fuel quantity onboard before bunkering. Under-declaring fuel quantities is a common malpractice, often involving both the bunker supplier and the receiving vessel. For instance, a vessel might order 1,000 metric tons but short-receive 50 tons, leading to shared profits between the supplier and the vessel while the operator incurs losses. Regular bunker stem audits can help mitigate these risks.

Trim & List

The optimal time for measuring bunker quantity is when the vessel is on an even keel, without any cargo or ballast operations. However, this ideal condition is not always practical. It is crucial to accurately check for list and trim before and after soundings. Always calculate using the average corrected trim and list for precise results.

Falsifying Documentation Onboard

To ensure accurate tank sounding, verify that the sounding tables are endorsed by the Class or a recognized authority. Multiple sets of sounding books are common, and modifications can be made to benefit the vessel. Look for signs of tampering, such as inserted pages or different print types. Always ascertain the reason for any new calibration table and ensure it’s Class certified.

Overstating Fuel Consumption

Fuel consumption should be verified against the last 30 days of records from engine logbooks or deck logs. Engine overconsumption might be attributed to claimed heavy weather or boiler overconsumption during idle periods. These discrepancies are often indicators of fuel misappropriation and should be investigated thoroughly to ensure compliance with operational standards.

Incorrect Fuel Densities and Missing BDN Records

Fuel densities provided by the Chief Engineer must be cross-checked against recent Fuel Laboratory Analysis Reports. If these reports are unavailable, densities stated in the Bunker Delivery Note (BDN) should be used. BDNs must be retained for three years and readily accessible for inspections by port authorities to avoid penalties for non-compliance.

Oil Record Book (ORB)

Scrutinizing the Oil Record Book (ORB) is essential to track sludge and bilge transfer operations, along with the retention and disposal of oil residues. Records should detail the identity and capacities of tanks, as well as collection and disposal operations. Concealed bunkers have been discovered in waste tanks, transferred through unauthorized connections, highlighting the need for thorough oversight.

Temperatures

Accurate temperature recording is essential for bunkering operations. Measure the temperature of the sounding tape just before extraction for a general idea of tank temperatures. If the Chief Engineer reports unusually high temperatures, use a manual thermometer attached to the tape bobs for precise readings. Investing in a good digital thermometer, which can be dipped directly into the tanks, is advisable for accuracy.

Soundings

Always verify the condition of the sounding tape and ensure no alterations have been made. Use your own sounding tape and a ruler for precise measurements, especially when sounding is below the 20 cm mark. Keep a record of reference heights for each tank, as discrepancies could indicate foul play or tampering with the sounding pipes.

Bunker Tanks

It's vital to confirm the number and location of all bunker tanks, including sludge and overflow tanks, ensuring they align with the tank capacity diagram. Refer to MARPOL I/VI Certificates to understand the exact capacities of various tanks. Investigate any claims of empty tanks, checking for evidence of sludge or ongoing repairs that may affect their status.

Settling / Service Tanks

Service and settling tanks can effectively conceal bunker fuel, though the quantities hidden are limited by tank capacity. Under normal conditions, settling tanks should have at least 60-80% of their capacity filled, while service tanks should maintain 80-85%. If tank levels drop below these thresholds, further investigation is necessary, including checking alarms and conducting full depth soundings to ensure accuracy.

Doctored Tank Gauges

It's crucial to verify the operation of tank gauges, as several types are commonly used. Check that floats are not jammed, verify empty tanks by opening drain valves, and ensure that the inlet valve to the oil column is open. Additionally, compare physical gauge readings with those from the engine control room panel for consistency, particularly in heated settling and service tanks.

Magic Pipes

The term "magic pipe" refers to a method of concealing bunker fuel. These pipes, often fabricated onboard, fit tightly within the actual sounding pipe, making it difficult to detect. When inserted, they can give false readings or make tanks appear empty. The use of magic pipes to bypass the Oily Water Separator (OWS) is a criminal offense, leading to significant penalties.

Signs of Tampering

Look for signs of tampering with flange bolts, especially beneath the engine room floor plating, where alterations can go unnoticed. Evidence of excessive oil stains or fresh paint on flanges can indicate foul play. If dissimilar metals are found within the sounding pipe, conducting a gas oil test may reveal discrepancies in the readings, signaling potential tampering.

Concealment Methods

Concealing bunker fuel can also involve lengthening the sounding pipe and obstructing the bottom with a bob or similar object, providing misleading reference heights. Investigate pipe flanges and couplings for signs of tampering, particularly near the engine room ladder. Any scratches or oil stains may suggest that a magic pipe has been used. Thorough inspections are necessary to ensure accurate readings.

Bunker Fuel Pricing and Oversight

Given current bunker fuel prices, effective supervision of bunkering operations is critical to ensure that quantities on the Bunker Delivery Note (BDN) are accurate. Unfortunately, some ship operators rely solely on the Chief Engineer for these tasks, leading to potential discrepancies and financial losses. When a surveyor is present, the Master and Chief Engineer must still maintain oversight to prevent malpractices.

Conclusion

The ongoing issue of stealing bunker fuel due to rising prices is likely to persist. Effective loss prevention during bunker stemming relies heavily on the practical experience and proactive approach of bunker surveyors. Continuous vigilance and thorough inspections are essential to safeguard against potential fraud and ensure compliance with operational standards.