Marine Insurance P&I Club News 06/05/2019
“Prepare crews for PSC spot sampling of
ships’ fuel”. This may seem like pretty minor advice at a time when ship owners
are in the midst of preparing their fleets and crews for compliance with the
2020 global sulphur cap. Onboard spot sampling of ships’ fuel is nothing new.
Since the 0.10% sulphur cap entered into force in EU ports and the designated
ECAs, spot sampling and analysis of ships’ fuel have been common as a means for
port state control (PSC) to verify the actual sulphur content of the fuel in
use.
The ECAs are still relatively limited
in terms of geographical scope whilst compliance with the global 0.50% sulphur
cap involves much larger quantities and different types of fuels. Hence, it is
anticipated that the frequency of PSC requests to take spot samples of ships’
fuel oil will increase significantly after 1 January 2020 and shipowners should
prepare their ships and crew accordingly. The IMO’s adoption of a prohibition
on the carriage of non-compliant fuel oil from 1 March 2020, the so called
‘carriage ban’, is also expected to drive the requirements for further sampling
by PSC.
Even PSC inspectors make
mistakes
There is no doubt that PSC will play an
important role in the enforcement of the 2020 global 0.50% sulphur cap.
However, while many PSC regimes are investing heavily in training and education
of their inspectors ahead of the regulatory changes, others may not be equally
well prepared for their new inspection tasks come 1 January 2020. The cases
reported below demonstrate that even PSC inspectors make mistakes from time to
time. And when such mistakes are the reason for ships being penalised – proper
onboard procedures and a well prepared and attentive crew can make a big
difference in changing the outcome of a case.
Case 1 – read the ‘small print’ before you
sign
A ship entered with Gard was recently
fined in an EU port for “using marine fuel with a content of sulphur higher
than the restriction established by law (0.10%) in port”. A sample had been
drawn from the fuel oil system while the ship was at berth and testing
established that the sulphur content of the sampled fuel exceeded the 0.10%
limit. The test results came as a complete surprise to the ship’s crew.
According to the Chief Engineer, the ship’s auxiliary engines had been running
on compliant marine gas oil (MGO) at the time of the inspection. This statement
was supported by entries in the ship’s log-books, which showed that a
successful change-over to MGO had been completed in line with the port’s
requirements, as well as the bunker delivery note for the MGO, which showed
that its sulphur content was well below the required 0.10% limit.
Further investigations revealed that
the ship’s fuel oil supply unit for the main engines had also been running at
the time of the PSC inspection, but only in re-circulation mode as part of the
procedures for securing the main engines after stopping. The shipowner
therefore concluded that it was very likely that the inspector had sampled fuel
from the ‘wrong system’ and that the sample did not represent the fuel burned
while the ship was at berth. Additional testing of the ship’s duplicate fuel
sample supported this conclusion, the fuel in the bottle was HFO, not MGO. It
appears in this instance that our Member may have been penalised because of a
mistake made by the PSC inspector.
Following further investigations, the
shipowner found that the PSC inspector’s sampling report was incomplete and could
not be directly linked to the ship’s duplicate fuel sample that had been
tested. The report did not specify the quality of the fuel sampled, the
location where the sample was taken, nor did it list the seal number on the
sample bottle. However, when it also turned out that the ship’s Master and
Chief Engineer had signed the inspector’s report, with no notification of
protest, it became very difficult for the shipowner to argue his case.
Case 2 – a picture is worth a thousand words
In another case, also in a port in the
EU, a routine port state control inspection of a ship included the taking of a
fuel sample. And, like the previous case, when the sample was tested, the
sulphur content of the sampled oil was above 0.10%, and a fine was levied on
the ship. In this case our Member was able to document that the ship had
bunkered and burned only compliant ultra-low sulphur fuel oil (ULSFO) for the
previous two years. From the shipowner’s perspective, it was therefore quite
clear that the ship’s fuel oil could not possibly contain the stated sulphur
levels.
Since the crew had taken pictures
whilst the PSC inspection was ongoing, the correct seal number on the relevant
sample bottle was easily identifiable and the duplicate sample that was kept
onboard could quickly be located. It turned out that the duplicate sample
bottle contained a thick brownish oil that did not resemble the ship’s ULSFO.
When the duplicate sample was tested, and found to contain hydraulic oil, the
fine was cancelled. Thanks to attentive crew and good routines on board, the
shipowner was in this instance able to prove the PSC inspector had made a
mistake.
Sulphur inspections – issues to
be aware of
A ship may be targeted for a sulphur
inspection for various reasons, e.g. the existence of a previous non-compliance
or warning received concerning its fuel, the ship is scheduled to bunker at a
specific port, or as part of a maritime safety administration’s enhanced
verification programme – or just randomly in order to reach an overall
percentage inspection rate set by the PSC.
Methods of verifying compliance
For the vast majority of ships that
plan to meet the 2020 requirement by burning low sulphur fuel, PSC has
essentially two methods of establishing whether a ship is compliant:
1) Verify the sulphur content of the
ship’s fuel, e.g. by reviewing procedures, bunker delivery notes (BDN), log
book recordings, analyse the MARPOL delivered sample, and taking additional
samples at different locations of the fuel oil system.
2) Measure the sulphur content in the
ship’s exhaust gas, e.g. by use of remote sensing equipment such as
sulphur-sniffing drones or similar monitoring equipment placed at strategic
locations on shore.
Document review
Much of the compliance with MARPOL
Annex VI is documented by recordkeeping. It will therefore be important to
ensure that that all MARPOL Annex VI documentation is complete and up-to-date
prior to a port entry. Results from Tokyo MOUs concentrated inspection campaign
in 2018 show that missing BDNs was one of the most notable deficiencies found
during the campaign. Regulation 18.6 of MARPOL Annex VI requires BDNs to be
retained onboard for a period of three years after the fuel has been delivered
onboard.
In the shorter term, PSC may also
consider ship implementations plans (SIP) when verifying compliance with the
0.50% sulphur limit requirement. A ship with a suitably developed SIP, and a
clear record of the actions taken in order to be compliant, should be in a
better position to demonstrate to PSC that the ship’s crew and managers have
acted in good faith and done everything that could be reasonably expected to
achieve full compliance. A SIP is, however, not mandatory and therefore, the
absence of such or incorrect entries etc. should not form the basis for a PSC
deficiency.
Initial check
The use of remote sensing equipment and
portable handheld fuel analysers is likely to become increasingly common during
initial inspections by PSC. As an example, the Danish Maritime Authorities
recently announced that a sulphur-sniffing drone is already in use to check
emissions from ships in Danish waters. When the drone enters a ship’s exhaust
gas plume, it can register the amount of sulphur in the fuel and make the data immediately
available to Danish authorities, who can follow up if a ship does not comply
with the applicable requirements. http://www.gard.no/web/updates/content/27554374/prepare-crews-for-psc-spot-sampling-of-ships-fuel
The ship’s crew should, however, be
aware that the results from such equipment may be of an indicative nature only
and should not necessarily be accepted as the sole evidence of non-compliance.
PSC inspectors are, however, likely to consider such results to be ‘clear
grounds’ for further inspection.
More detailed inspection
Given ‘clear grounds’ to conduct a more
detailed inspection, PSC may require samples of fuel oils to be analysed at a
fuel testing laboratory. This could be either the representative samples
provided with the BDN, or spot samples of fuel oil drawn from a ship’s fuel oil
lines and/or tanks.
Where the MARPOL delivered sample
required under Regulation 18.8.1 is taken from the ship, a receipt should be
provided to the ship. Where spot samples are drawn from the ship’s fuel oil
lines or tanks during the inspection, the Chief Engineer should be present at
all times to verify that samples are drawn at the right location and in the
correct way. The Chief Engineer should also inspect the immediate quality of
the sample, verify that each sampling bottle is properly labelled and make sure
the ship’s own samples are retained onboard. It is important that the PSC
inspector reports information such as the sampling point location where the
sample was drawn, date and port of sampling, name and IMO number of the ship,
and details of seal identification.
Designated sampling points
become mandatory under MARPOL Annex VI
A new retroactive requirement in MARPOL
Annex VI to designate, or if necessary fit, sampling points to facilitate the
taking of spot samples onboard ships was agreed during the sixth session of the
IMO sub-committee on Pollution Prevention and Response (PPR 6) in February
2019. Subject to approval by the MEPC 74 in May 2019, ships will be required to
designate, and clearly mark, sampling points no later than the first IAPP
renewal survey that occurs 12 months or more after the entry into force of the
amended regulation.
When designating the sampling points
shipowners should consider the “2019 Guidelines for onboard sampling for the
verification of the sulphur content of the fuel oil used on board ships”, also
agreed at PPR 6. Although the guidelines are a recommendation only, they set
out an acceptable sampling method for inspectors to determine the sulphur
content of fuel oils, both with respect to location of sampling points and
handling of the samples.
In order to distinguish between onboard
spot samples and samples taken when fuel oil is delivered onboard, currently
known as the ‘MARPOL sample’, the PPR 6 agreed to introduce two new terms in
MARRPOL Annex VI: the ‘in-use sample’ to describe a sample drawn from a ship’s
fuel oil system and the ‘onboard sample’ to describe a sample drawn from a
ship’s bunker tank. The latter was introduced as a means of verifying
compliance with the new ‘carriage ban’ and the PPR 6 further agreed that
additional new guidelines are needed to support the safe taking of samples from
ships’ bunker tanks.
Summary and recommendations
Despite ongoing preparatory work within
the IMO and the publication of numerous guidances by classification societies
and other industry stakeholders, shipowners still face a range of uncertainties
and potential operational risks post-2020. Fuel prices in 2020 are a big
unknown. Understandably, most shipowners worry about an increase in costs in an
already difficult economic environment. Equally high on shipowners’ agenda are
issues related to the availability of low sulphur fuels and the quality of new
fuel blends. Compatibility between fuel batches is a serious safety concern,
and so is the long-term stability of some of these new fuels. For those that
have invested in exhaust gas cleaning systems (scrubbers), it will be
particularly important to keep a close eye on the local regulation of wash
water discharges from open-loop scrubbers.
Shipowners can, however, be fairly
certain of one thing: PSC will start enforcing the cap from 1 January 2020,
whether the industry is ready or not! Hence, when preparing fleets and crews
for compliance with the 2020 global sulphur cap:
· Do
not forget to revisit ships’ procedures for fuel sampling.
· Make
sure the procedures describe acceptable and safe sampling methods for a ship’s
fuel oil system, both with respect to location of sampling points, handling of
the samples, and record keeping.
· Train
the relevant members of the engine crew and emphasise the importance of
escorting the attending sulphur inspector at all times while onboard.
· Consider
if the recommendations contained in existing, as well as coming IMO sampling
guidelines should be implemented in a ship’s procedures. The European Maritime
Safety Agency’s (EMSA) “Sulphur Inspection Guidance” provides useful advice and
information on the PSC’s approach to the inspection of ships and how they
ascertain a vessel’s compliance with applicable sulphur in fuel requirements.
Section 2.7 of the EMSA guidance addresses sample collection and analysis
Remember, without proper evidence, the
chances of the shipowner losing the claim in a disputed case are high.
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