Effective and efficient bunker operations, logistics, procurement, developments in the maritime industry Part 1: Effective and efficient management of bunker quantity
Date of Issue2016-05-20
School of Civil and Environmental Engineering
Bunker and bunkering related disputes are a repeat problem for owners and charterers. While many papers and discussion focus on the container shipping industry, the tramp shipping sector is often left unevaluated. In the tramp shipping industry, industrial players believe that the weakest link along the bunker supply chain lies in the delivery stage. This report explores the difficulties associated with bunker quantity control both contractually and operationally. With the difficulties in mind, three measures identified are conducting supplier appraisal, employing Third Party Surveyor Company and purchasing bunkers from suppliers installing MFM system. These measures are then evaluated thoroughly for its effectiveness and efficiency. Scenario analysis are carried out for supplier appraisal, quantitative evaluation over the choice of independent surveyor company and for the calculation of savings or loss from the formula suggested. Adopting the suggested trade-offs formula in evaluating the scenario given, the analysis reveals that the breakeven quantity of bunker short changes to be found by surveyors is 9.05MT. Any quantity discovered above 9.05MT will result in positive net savings for the shipping company if the independent surveyors work closely together with the vessel crews and barge operators and MFM system is fitted to value add to the efficiency. The report provides an in-depth discussion on the identified measures and ways to carry out them effectively and efficiently, it also offers references for tramp shipping companies to make decisions in managing their bunker quantity.
Final Year Project (FYP)
Nanyang Technological University