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Recent spike in bunker disputes - more to come with 2020 sulphur cap

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The sharp rise in bunker problems seen in recent months is a precursor of what the market will see in the run up to 2020 and beyond as owners switch to hybrid, blended fuels to be compliant with the global 0.5% sulphur cap.

While marine gasoil (MGO) and LNG would be better options operationally, factors such as cost and availability and mean that the majority of owners will opt for hybrid low sulphur fuel.

Speaking at a UK Defence Club seminar in Singapore Thursday, John Gibson, partner, Brookes Bell Singapore stated: “Where we used to have about 150 bunker disputes and bunker related casualties a year we’ve had nearly 80 in the last two and half months. I believe this is an indication of what is going to be happening until 2020 and beyond.”

He said that while in theory hybrid fuels were great idea as they cost less than MGO and would require less shipboard fuel changes there was a major issue of compatibility of blends in different parts of the world. This Gibson believes is leading the sort problems being seen at the moment where there was almost instantaneous damage to the purifiers.

“Allowable low sulphur mixed fuels is the most likely way forward, and I have to say from a dispute resolution and casualty investigation side of things one of the more dangerous areas and I do think it’s why we are seeing at the moment such an increase in bunker related casualties,” he warned.

“At the moment I think it’s fair to say no-one knows exactly what type of fuel you’ll be getting when you get a blended fuel.”