DYNAMIC Oil Trading, a trading company for marine fuels and lubricants, is urging bunker fuel suppliers to help shipping companies lower their exposure to fuel quality and quantity risks, including bunker fraud.
The company said in a release that it welcomes steps taken to drive up professional standards within the industry, as well as the use of the latest technology, including Mass Flow Meters.
But it said shipowners can achieve greater assurance over fuel quality and quantity by developing partnerships with bunker suppliers to help them reduce their exposure to disputes and fraud.
"Understandably, following the Maritime and Port Authority of Singapore's decision to make mass flow meters mandatory from 2017, there is greater optimism about the role that this technology can play in reducing short deliveries," said Dynamic CEO Lars Moller.
"But even where mass flow meters are available, shipowners need to be aware of other factors that can give rise to disputes, not just over fuel quantity, but also off-spec products or fuel contamination," he said.
"This can have extremely serious consequences, including non-compliance with emissions regulations and damage to engine components.
"Under pressure to keep costs down amid low freight rates and high bunker prices, it is easy to see how shipowners could be tempted to cut corners when it comes to conducting due diligence, purchasing fuel from the cheapest supplier.
"But they need to be aware of the risks that this poses, not just in terms of bunker fraud but also other risks that can threaten their operational activities and their reputation, as well as proving very expensive," he said.
WORLD SHIPPING
15 June 2014 - 18:23
Greater due diligence is needed to reduce bunker fraud, disputes
DYNAMIC Oil Trading, a trading company for marine fuels and lubricants, is urging bunker fuel suppliers to help shipping companies lower their exposure to fuel quality and quantity risks, including bunker fraud.
WORLD SHIPPING
15 June 2014 - 18:23
Greater due diligence is needed to reduce bunker fraud, disputes
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