Case Study: Resolving a Bunker Quantity Delivery Dispute in East Africa

Observater Surveys and Services Group (OSSG), a trusted authority in marine and bunker survey solutions, was called upon to resolve a significant bunker fuel dispute at a major port in East Africa. The case involved a medium-range tanker taking on 1,200 metric tons (MT) of very low sulfur fuel oil (VLSFO).
Upon completion, the vessel’s Chief Engineer reported a 45 MT shortfall compared to the supplier’s recorded delivery. With the disputed amount valued at approximately $40,000, the issue posed financial and operational risks. OSSG was tasked to investigate, mediate, and ensure a fair resolution for all stakeholders.

The Challenge
East Africa’s ports are known for operational complexities:

Inconsistent Equipment Standards: Variations in Mass Flow Meter (MFM) calibration and maintenance.
Environmental Factors: High ambient temperatures affecting fuel volume and density.
Operational Gaps: Local suppliers often lack strict adherence to pipeline stripping and measurement procedures.

OSSG needed to examine these challenges, and other technical challenges both on the receiver vessel and supplier barge to determine the cause of the discrepancy, with impartiality, and protect the client’s interests, and supplier-buyer relations, thus ensure fairness.

How OSSG Helped
OSSG deployed a highly skilled team with extensive experience in East African port operations to manage the situation.

Step 1: Pre-Delivery Inspection
OSSG began with a thorough audit of all equipment and processes:
Verified the supplier’s MFM calibration certificates to ensure compliance with international standards.

Cross-checked initial tank soundings on both the barge and the vessel.
Conducted a pipeline inspection to assess potential points of fuel retention.

Step 2: Real-Time Monitoring of Bunkering Operations
During the fuel transfer, OSSG surveyors maintained a vigilant presence to ensure transparency and procedural accuracy:

Independently monitored MFM readings alongside the supplier’s logs.
Conducted mid-transfer and final manual soundings on both the barge and vessel tanks.

Supervised pipeline stripping procedures to minimize residual fuel.

Step 3: Post-Delivery Analysis
After the transfer, OSSG identified several key issues:
MFM Inaccuracy: The supplier’s MFM had not been recalibrated for over a year, casting doubt on the recorded figures.
Unstripped Fuel in Pipelines: OSSG’s inspection revealed 45 MT of fuel remained in the supplier’s barge and pipeline system.
Temperature Variations: The supplier’s calculations did not account for temperature differences, resulting in inflated delivery figures.

Resolution
OSSG compiled a comprehensive report detailing its findings, complete with photographic evidence, measurement logs, and procedural analyses. Armed with these facts, OSSG facilitated negotiations between the vessel operator and the supplier.

The supplier, unable to refute the evidence, agreed to:

Deliver the missing 45 MT of VLSFO to the vessel at no additional cost.
Implement immediate recalibration of its MFM system under guidance of approved calibration services provider.

Adopt stricter operational protocols, including mandatory pipeline stripping and temperature-adjusted calculations.

OSSG supervised the supplementary delivery, ensuring the vessel received the agreed quantity and resolving the dispute amicably.


The Importance of Competent Surveyors
This case underscores the critical role of skilled and independent surveyors like Observater Surveys and Services Group:

Technical Expertise:
OSSG’s advanced methods, including real-time MFM validation and temperature-adjusted manual soundings, ensured precise and reliable assessments.

Impartial Authority:
OSSG’s reputation as an objective and authoritative party helped de-escalate tensions and foster trust among all stakeholders.

Proactive Oversight:
By supervising every stage of the bunkering process, OSSG prevented errors from compounding and ensured transparency.

Regional Adaptability:
OSSG’s experience with East African operational challenges allowed for tailored solutions that accounted for local environmental and procedural conditions.

Conclusion
Through its expertise and authoritative approach, Observater Surveys and Services Group successfully resolved a complex bunker fuel dispute in East Africa. By ensuring the delivery of the missing 45 MT and enhancing operational accountability, OSSG not only protected its client’s interests but also set a higher standard for transparency and accuracy in the region’s bunkering operations.

Observater Surveys and Services Group – Your Trusted Partner in Marine Survey Excellence.

We are specialists in: all types of bunker surveys. From Off/ On hire bunker surveys, BDS (Bunker Detective Survey), BIS (bunker detective surveys), ROB (bunker remaining onboard survey), BQS (Bunker Quantity Survey), Stem Bunker surveys, etc. Office Hours: Monday – Sartuday 08:00 to 17:00 Hrs, with 24/7 Availability for Operations.

For Bunker Surveys In Mombasa and Africa Ports Visit: Observater Marine Surveyors Mombasa/ Africa for professional service.