Short answer: who buys bunkers depends on the contract. Under a voyage charter the owner normally buys the fuel. Under a time charter the charterer usually provides and pays for bunkers, but must deliver fuel that meets the owner’s specification in the charter party. Good procurement for either party means stating the right specification, comparing offers on total cost, and keeping clean records in case of a claim.
Who is responsible for bunkers?
- Owners operating their own ships buy for their fleet and set their own specifications.
- Voyage charters: the owner pays for bunkers and prices them into the freight.
- Time charters: the charterer provides and pays for bunkers during the charter, subject to the bunker clause. Delivery and redelivery quantities and prices are often fixed in the charter party.
- Bareboat charters: the charterer operates the ship and buys fuel like an owner.
The bunker clause
For time charterers, the bunker clause defines the fuel they must supply: the ISO 8217 grade and edition, any owner limits, and sulphur requirements for the trading area. If a charterer supplies fuel that does not meet the clause and it damages the engines, the owner may claim against the charterer, who will in turn need to claim against the supplier. That chain of claims is why charterers need clear documentation and good sampling.
Procurement good practice
Specify precisely
Grade, viscosity class, sulphur limit and edition, for example “VLSFO RMG 380, S max 0.50%, ISO 8217:2017”, plus any owner limits on density, cat fines or flash point.
Compare total cost
Normalise offers by adding barging, delivery and small-quantity charges, and consider payment terms. A lower price with shorter credit or extra charges may cost more.
Know who you are contracting with
Check whether your counterparty is a broker, a trader or the physical supplier, and whose terms apply. This decides who you claim against. See bunker trading and brokerage.
Plan quantity carefully
Base quantities on voyage consumption, ECA requirements and safety margins. For charterers, consider redelivery quantities required by the charter party.
Protect quality and quantity
Insist on proper sampling, consider an independent survey, and test before use where the stem is large or the supplier new.
Credit and payment
Suppliers extend credit after checking the buyer. New buyers should allow time for credit approval, especially for urgent stems. Payment terms, typically a set number of days from delivery, are stated in the offer and are part of the commercial comparison.
Records to keep
- Enquiry, offers and written confirmation
- Nomination and any amendments
- BDN, meter printout and sample receipts
- Survey and laboratory reports
- Any letters of protest and correspondence
Frequently asked questions
How can charterers arrange bunker fuel procurement?
By sending a trader, broker or supplier the vessel, ETA, location, quantity and the exact specification required by the charter party bunker clause, then confirming the offer in their own name and keeping full delivery records.
Who pays for bunkers under a time charter?
Usually the time charterer, as set out in the charter party bunker clause.