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Economics of Supplying Bunker Fuel 31 March 2009, Rotterdam, the Netherland

                                                    Handling bunker claims& disputes
                                             Rotterdam, the Netherlands, 30 March 2009

Lecturer: Chris Fisher, IBIA

This workshop is designed to help delegates clarify what should be done and what does work in cases of inferior quality fuel delivery, poor performance related to fuel delivery obligations, and non-compliance with requirements of Marpol Annex VI. Delegates are presented with a claim case study and asked to consider all aspects and develop a strategy to resolve the issues, plus carry out exercises on fuel treatment and on fuel quality.

Key learning outcomes: 

  • Get updated on recent developments in bunker & fuel standards 
  • Understand fuel quality characteristics and their importance
  • Understand quality aspects of Low Sulphur Fuels
  • Know why to buy high viscosity fuels and how to identify the right one
  • Enhance knowledge of on-board and lab test methods 
  • Interpret test results correctly 
  • Get updated on environmental legislation developments 
  • Understand bunker sales & purchase terms, conditions and responsibilities 
  • Understand charter party agreements and their clauses
  • Strengthen your knowledge on bunker delivery procedures

    The programme:

    Production of bunker fuel & blending 

  • Crude oil types and impact on fuel quality 
  • Refining methods and impact on fuel quality 
  • Fuel oil blending

    Fuel standards and specifications 
  • ISO 8217 & CIMAC
  • Quality characteristics and their importance

    Bunker delivery procedures
  • Quantity determination
  • Sampling
  • Bunkering procedural standards (ISO & CP60, etc.)

    Treatment of fuel on board ship
  • Storage
  • Purification
  • Filtration
  • Heating/Injection

    On-board fuel testing and quality monitoring
  • Test equipment & methods
  • Value of the results
  • Routine analysis v specific sampling and testing

    Laboratory test methods
  • Test equipment and methods

    Environmental legislation regarding bunker fuel and emissions from ships 
  • Marpol Annex VI – Low Sulphur Fuel and NOX
  • Regional rules
  • Current developments and expected future changes
  • Quality aspects of Low Sulphur fuels
  • Legal aspects

    Purchase and use of high viscosity fuels
  • Why use high viscosity fuels? 
  • Quality v viscosity, what does viscosity tell us about a fuel and how important is it?
  • Energy content. Why the cheapest fuel may not be the best value.

    Unusual contaminants and their effect on engines and fuel treatment systems
  • Acids- what types and where are they from?
  • Esters- what are they and how do they get into fuel?
  • Polypropylene – has the problem gone away? 
  • Legal aspects

    Legal session. Sale and purchase of bunkers 
  • Terms and conditions of sale 
  • Responsibilities of the parties
  • Dispute handling

    Legal session. Charter party agreements
  • Bunker clauses – general 
  • Bunker clauses – Bimco
  • Dispute handling – Types of dispute resolution


                                                Economics of Supplying Bunker Fuel
                                         Rotterdam, the Notherlands, 31 March, 2009 

    Lecturers: Chris Fisher, IBIA
                       Robin Meech, Marine and Energy Consulting


    The final ratification of MARPOL Annex VI has raised concerns that bunker fuel quality in many of Europe's key ports could deteriorate without improvement in fuel blending techniques. Under the revised regulations, the requirement to blend residual fuel to 1.0% sulphur at the lowest possible cost could result in an increasing number of 'off spec' low sulphur bunker fuel supplies. In order to meet 1.0% sulphur specifications, intermediate fuel oil (IFO) with higher sulphur content is blended with low sulphur cleaner fuel, or distillates, as part of a delicate blending process undertaken by the bunker supplier. The workshop focuses on blending and component selection as well as supply and demand of all types of bunkers, storage and distribution economics, quality standards, sampling and test methods.

    The programme: 
                                                   
    Introduction

  • The residual fuel oil market and bunkers in particular
  • Market players and shares

    Crude Oils & Refining processes and their impact on residual quality 
  • Crude Oils
  • Refining
  • Refined products 
  • Residual 
  • Potential blend components

    Standards 
  • ISO 8217 
  • Characteristics within the standards
  • The development of ISO 8217 and where it is going 
  • Specific clauses and their impact

    Regulation and Practical Constraints 
  • Sulphur regulations 
  • Global constraints on marine fuels 
  • Emissions – PM’s, H2S
  • Safety – flash point

    Storage and Handling 
  • Types of tank storage
  • The economics 
  • Commercial terms 
  • Blending procedures 
  • Tank farm management – controlling third party blending 
  • Safety

    Blending
  • Why blend 
  • Blend components
  • Sourcing blend stocks
  • Blend stock characteristics 
  • Price implication

    Blending Issues (Density, Viscosity, Carbon residue, Water, Sulphur, Sediments, Ash, Vanadium, Aluminium and silicon, Flash point, Pour point, Cloud point, Ignition quality, Zinc, Phosphorous, Calcium, Additives, Blenders, Precision of test methods and repeatability)

    Storage and Handling
  • Types of tank storage 
  • The economics 
  • Commercial terms
  • Blending procedures
  • Tank farm management – controlling third party blending 
  • Safety

    Blending Calculations 
  • Worked examples of blending 
  • The economics
  • Tools and software

                                                                  Shipping in Cleaner Air
                                                     Rotterdam, the Netherlands, 1 April, 2009,


    Lecturer: Robin Meech, Marine and Energy Consulting  

    The workshop “Shipping in Cleaner Air” provides insight into the changing legislation to curb emissions form shipping. Although the focus will be on the Baltic and North Sea, participants will obtain an awareness of the global implications in terms of the regulations, compliance, demand for lower sulphur fuels, the longer term switch to distillate marine fuels and the price implications. The challenges faced by both suppliers and buyers will be demonstrated and proposed solution proposed, again setting out the associated costs. There will be ample time for questions and answers throughout the workshop. The workshop will be conducted simultaneously in Russian and English.

    The Programme:

    Marine Emissions 

  • Quantification 
  • The regulatory process

    Legislation
  • Quantification
  • The regulatory process 
  • Annex VI 
  • EU Directives 
  • California 
  • Other regions
  • Global outlook

    Bunker & Fuel Oil Demand 
  • Marine and inland demand for high and low sulphur fuels 
  • Demand by region
  • Demand by ship type
  • The supply pressures

    Exhaust Gas Scrubbing 
  • Technologies
  • Economics
  • Future utilisation

    Green House Gas 
  • Quantification 
  • How GHG trading works 
  • Future schemes 
  • Economics

    Financial Implications 
  • Credit and pricing risks 
  • Credit insurance 
  • Price hedging 
  • The future

    Case Study

    Summing up

    Lecturers:
    CHRIS FISHER
    – Honour Treasurer, IBIA, Managing Director, Bunkers Claim International Company Chris Fisher can look back on almost 30 years of experience in the bunkering industry. A renowned expert in his field, he has published, together with Jonathan Lux, the book “Bunkers – An analysis of the practical, technical and legal issues”, which is regarded as a classic in the bunkering business. He is currently Director of Bunker Claims International, which he founded himself. BCI is serving clients worldwide with its expert advice. As a consultant, Chris Fisher has worked with a multitude of clients. The major P&I clubs as well as many international law firms, shipping companies, bunker suppliers, bunker traders and charter organizations and bunker suppliers can be counted among his clients. He began his career at Texaco, where he started as Chief Engineer and became Superintendent Engineer later on. In 1984, he began his work as a surveyor and consultant, specializing in liquid cargo and bunker quality disputes. In 1987, he began to work at DNV Petroleum Services. From 1991 to 1995, he took up the post of Regional Manager Europe for this company. In 1996, he was appointed Northern Europe Director at the British Standards Institute. The BSI group of companies provide independent Inspection and Certification services related to the sale and purchase of Oil and Petrochemical cargoes. Since 2003, he has concentrated on running his own business at Bunker Claims International. In addition, Chris Fisher is honorary treasurer of the International Bunker Industry Association, member of the Heavy Fuel Working Group of CIMAC and a Fellow of the Institute of Marine Engineering, Science and Technology. He has a long-standing experience in holding workshops on bunkering topics.

    ROBIN MEECH is Managing Director of Marine and Energy Consulting, an independent consultancy practice focusing on the marine industry with an emphasis on the transport of energy. He has a particular interest in the bunker sector where he has undertaken assignments for ship owners, the Major Oil Companies as well as independent traders and national oil companies. He advises clients in the bunker sector on environmental issues, forming alliances, purchasing strategies, organisation, new business ventures, credit insurance, logistics, IT systems and e-business. He has also been a director of an independent tanker company where his responsibilities included managing the purchasing of bunkers. Robin Meech is co-author of “Outlook for Bunker Fuel Oil and Heavy Fuel Oil to 2015” due to be published later this year. Robin Meech has worked extensively throughout Russia including fours years’ resident in Moscow. He holds an honours degree in engineering from the University of Bristol, UK.



    ATTENTION! Register for any 2 workshops and receive 20% discount for the third!