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Costly legal and technical costs arise from contaminated bunker in US Gulf
Date:2018-09-06 Readers:
REPORTS that 100 vessels have been hit by contaminated fuel oil in Houston and other US Gulf ports, has spawned costly and complex problems, say BIMCO lawyers from the London law firm Holman Fenwick Willan (HFW).

Affected ships reported blocked fuel filters, fuel pump seizures and complete loss of power, risking collisions and groundings, say HFW lawyers Paul Dean and Rory Grout.

"Contaminated supplies of blended fuel oils, such as IFO 380, were first reported in the US Gulf region in February, the lawyers wrote in London's Tanker Operator.

"Whilst the root source remained inconclusive, gas chromatography mass spectrometry testing seemed to point to adhesive phenolic compounds as the principal contaminant," they said.

"The issue appears to have been compounded due to the lack of detection of contaminants via conventional fuel testing analysis performed in accordance with ISO 8217 requirements and fuel specifications.

Suppliers speculate that the problem is linked to a refinery, or cutter stocks that added lighter petroleum products to heavier fuel to reduce viscosity, said the report.

The immediate question for shipowners will be how to deal with the contaminated fuel remaining on board and not yet burned.

"This will need to be assessed on a case by case basis and is likely to require the input of a marine fuel specialists in conjunction with an owner's P&I Club and legal advisors," said the lawyers.

Options may include the blending or filtration of the contaminated fuel, or alternatively its complete discharge, as well as fuel tank and fuel system cleaning.

Discharge of the contaminated fuel, now designated as a chemical waste, requires specialist handling and is not suitable or permitted for onshore fuel storage facilities, they said.

"Although circumstantial evidence may point to fuel contamination, owners will need to consider and preserve the evidence necessary to prove that the cause of the problem is off-specification fuel oil and not a ship related problem," said the HFW team.

"This will include retaining samples of the contaminated fuel, as well as establishing that the relevant maintenance checks of their fuel filtration and pumping system are up to date and in order via documentary records.

"Evidence of previous bunker supplies, potentially going back over a period of time, may also be required to rule out problems caused by earlier stems," they said.
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