the international bunker industry association capt peter w hall · 2 ibia’s-aims ? to provide an...
TRANSCRIPT
The International
Bunker Industry Association
Capt Peter W Hall
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IBIA’s-AIMS ? To provide an international forum for bunker industry issues;
To represent the industry in discussions and negotiations with national and international policy makers, legislators and other groups and bodies;
To review, clarify, improve, develop and endorse where appropriate, industry methods, practices and documentation;
To increase the professional understanding and competence of all who work in the industry;
To provide services and facilities for members and others as the Board shall from time to time consider appropriate.
Looking at the Supply chain
supplier Fuel Port Interface ship Engine
Who sells the bunkers
Independent Local Suppliers
NOCs
International Independent
Traders/Brokers
Majors
Into-Ship Revenues
23%
33%
22%
17%
BP Shell ExxonMobil Chevron
World Fuels Services Chemoil Aegean TotalFinaElf Gasprom/Lukoil – Russia Saudi Aramco NIOC – Iran PDVSA – Venezuela Petrobras – Brazil Chimbusco - China
Argos bunkering, Equatorial Macoil Maxcom as well as some 350 independent suppliers
There are some 1,200 supply offices operated by 600 companies
Trading Houses Marubeni, Sumitomo, Toyota,Dan Bunkering 5%
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The chain Ship’s Agent
Chosen oil Supplier
4 4 4
4 3 3 3 3
10 1 2 5
6
8
9
12
12
11
11
11
7
Supply / Distribution Department
Shipowner
Ship
broker/trader/ Bunker dept.
Oil Supplier
Oil Supplier
Local Oil Supplier
Local Oil Supplier
Inquiry to purchase 1
Enquiry acknowledged 2
Enquiry to Suppliers 3
Quotation or refusal 4
Optimum price option 5
Counter or accept quotation, delivery details, agents name
6
Further possible price negotiations 7
Firm nomination plus delivery details 8
Acceptance of nomination 9
10 Confirmation: nomination placed and accepted
11 Instructions to supply ship, liaise with ship’s agent
12 Instructions to ship/ships agent and vessel
Current Marine Fuel Supply Chain? Buyer
Ship owner
Ship manager
Charterer
Supplier
Seller
Trader
Supplier
Refinery
Delivery
Barge
Jetty
Lorry
Ship
The Process is simple or is it? Fuel
Grade
MGO
LMDO
MDO
Distillate Diesel
ADO
Standard
8217
2005
2010
2012
Sample
Method and custody transfer
Laboratory accredited
People and equipment
Ship
Tank segregation
pipework
On board processing
Europe
UK/Ireland 2005 – 68.6%
2010 – 30.7%
France 2005 – 30.3%
2010 – 20.3%
ARA 2005 – 49.6% 2010 – 50.0%
Gib/Algeciras 2005 – 35.6% 2010 – 17.6%
Eastern Med
2005 – 80.4%
2010 – 17 1%
Italy 2005 – 66.8%
2010 – 15.4%
Baltic 2005 – 76.8%
2010 – 23.2%
Black Sea 2005 – 79.6%
2010 – 20.1%
Pressures on Quality Blending to meet lower sulphur requirements Inappropriate selection of blend components Low cost blend components Resulting problems – Stability, Ignition quality and
Contamination Buyers seeking lowest price in rising market. Fuel is
highest operating cost
What history tells us CARB Jan 2009 - Jul 2010
Source: CARB
LOP incidents doubled with the induction of CARB distillate regulation
Cost of Failure Engine damage Loss of power Safety issues – flash point De-bunkering Off hire Arrest
What is being done to improve quality? IMO - Contracts and ISO standards improved Ports Charter Ship owners and Operators Insurance Competency and understanding throughout
What is being done to improve Fuel Quality?
Test Samples
Ports Charter IMO-BDN Contract
Competency and understanding across the chain
Ports Charter Ports that sign the charter are committed to three key
principles, Establish measures to enable a Quality bunker fuel
supply to be delivered. Establish measures to ensure that the correct
Quantity is delivered. Demonstrate that the system that is operated within
the port is Transparent
.
ENFORCEMENT & COMPLIANCE– A PORT’S PERSPECTIVE
Bunkering Regulations in Gibraltar:
• Bunker company must be licenced
• Each Bunker Barge must be licenced
• All licences subject to annual renewal
• Compliance with the Bunkering Code of Practice is compulsory
• Bunker Barges undergo annual Safety Survey inspection Flag State / Port State Standards
• Bunker Barges are subject to unannounced inspections / audits during operations
• Bunker Barges are subject to unannounced cargo sampling
Copyright Gibraltar Port Authority
Inspection Regime
Licence Requirements
Regulatory Framework
Bunker Operator
Port Operators Licence
Annual Review Process
Bunker Barge Licence
Unannounced Bunker Barge
Operation Audit
Unannounced Cargo Sampling
Annual Safety Survey
Conclusions Environmental and cost pressure -presses quality Standards play catch up - On board capability impaired Supply chain fragmented and with “new fuels” Participation – better solution with all involved New fuels are on the horizon. Become a member of IBIA?
Thank You
Why not join IBIA
Web site - www.ibia.net
Peter W Hall