WHY SABA?

 

Identification of problems

 

Majority of ships are sampling and testing bunker deliveries (DnV,Fobas,Viswa,Lintec)
Ship’s samples may not be representative, barge staff do not witness ship sampling
Barge asked to sign for ship’s samples
•Supplier’s samples rejected by ships
•Barge staff may not take representative samples
•Ship claims poor quality fuel and sample evidence cannot be relied upon ship or supplier
Suppliers receive fuel into barges ex-shoretanks but quality delivered to barge/ship can be different

B. Impact on the Supplier

•Exposed because his retained samples do not correspond with ship samples
•Cannot relate quality of shore tank analysis to ship taken sample
•Not sure if problem was with the terminal,barge or ship.
•High costs of management time, sampling, testing, witnessing, risk of loss of clients, reflects badly on the bunkering port
•Could happen again as no change made to procedures

C. Costs to Suppliers

•Average management time spent on trying to resolve each incident between 2 and 7 full working days of a senior member of staff
•Communications costs (telephone,fax,email,letters)
•Re-sampling and testing, expert advice etc can easily reach  $5000 per incident or more.
•If a counter claim against the terminal or barge cannot be successful –Supplier may have to accept all costs (de-bunkering,re-supply and possible damages) Could amount to $100,000 per claim.  
•May have protection of insurance but probably has a substantial own risk and premiums may rise due to repeat claims
•The risk of losing an important client may force the supplier to make a commercial settlement and absorb the loss

D . Evaluation of the risk

 

•Independent surveys have shown that quality problems are associated with 5% of bunker deliveries world-wide. These are not just HFO but include MDO and Gas Oil.
•In ARA some 12 million tons of bunkers are delivered to ships each year and the average quantity per delivery is 800 tons.
•Some 15000 parcels are delivered in ARA each year
•Potential problem deliveries (5%) 750 across ARA!!! Each year
•Belgian ports account for about 1/3rd of the ARA deliveries
•Therefore there is a risk of some 250 incidents per year in Belgian ports alone.

•No supplier can absolutely guarantee the quality of each delivery because he cannot be in total control of the entire delivery chain process. Barge activities are often the weak link in the supply chain

MARPOL REGULATIONS – NO CHOICE !

•Continuous drip sampling
•Certified Density and Sulphur content on BDR
•Sealed samples
•Specific information on Sample Labels
•Non Compliance would entail heavy fines and perhaps loss of trading permit.

•

Perception of Cost (USD) of Risk Reduction

•Appointing an independent surveyor to monitor every delivery from start to finish, take samples at every stage in the delivery chain and test all the samples would cost at least $5000 for each delivery- CORRECT
•Or for the average size delivery $6/ton-CORRECT
•This is not commercially viable-CORRECT
•The buyer would not pay this premium-CORRECT

•Then we need a better solution - CORRECT