Effective and efficient bunker operations, logistics, procurement, developments in the maritime industry. Part 2 : Effective and efficient management of bunker quality in the perspective of ship owners and operators

• Main Author: Wong, Jyun Yir
• Other Authors: Kenneth Tan
• Format: Final Year Project
• Language: English
• Published: 2016
• Subjects: DRNTU::Science
• Online Access: http://hdl.handle.net/10356/67538
• Institution: Nanyang Technological University

Bunker quality when compared to price tends to be less emphasised by owners and operators when procuring for fuels. This report sheds light on how issues such as the addition of water and sludge by some bunker blenders to increase profit margins and how cat fines size and calorific value affect the quality of bunkers which in turn results in costs for the owners and operators. Direct and indirect savings for procuring better quality bunkers are established in a scenario analysis to determine the amount of premium that could be paid for using better quality bunkers. The scenario analysis revealed that generally a premium ranging from US$4.50 to US$8.50 could be paid for the better bunker quality used for calculation in the scenario depending on the market of bunker price. Problems in current efforts in managing quality such as failure of bunker procurers to consider calorific value of bunkers procured, inefficient onboard fuel treatment system and the operators’ lack of knowledge in handling off-spec bunkers are identified. Solutions such as vendor appraisal system, two filter system and training of operators and crew to improve the efficient and effective management of bunker quality are recommended.