Class warning on carbon rating issues caused by bunker grade descriptions on BDN

As detailed in their ‘Class News 09/2022’, the Bunker Delivery Note (BDN) is submitted as part of the evidence pack for IMO Data Collection System (IMO-DCS) and European Union Monitoring, Reporting & Verification Regulation (MRV).  To ensure the correct emissions factor (Cf) is used, the emissions reports must state the fuel name and grade as specified in the ISO 8217 fuel standard.

It has been common practice for BDNs to name fuels in generic terms, such as ‘heavy fuel oil’, ‘HFO’, ‘IFO’ and, since the introduction of the global sulphur cap, ‘VLSFO’. However, these are not terms recognised by ISO 8217.

LR warns that reporting the incorrect fuel type and its corresponding emission factor will have implications on the vessel rating in view of forthcoming regulations, such as the Carbon Intensity Indicator (CII) and the EU Emissions Trading System (EU-ETS). LR strongly recommends that shipowners and the parties buying bunkers liaise closely with fuel oil suppliers to confirm that, in all cases, the BDN contains the fuel name and grade in accordance with ISO 8217 guidelines.

Helen Barden, Senior Solicitor (FD&D) at North adds: “Shipowners may wish to expressly stipulate in their charterparties that Charterers shall ensure that the fuel name and grade as specified in the ISO 8217 fuel standard is correctly included on any BDN, and likewise Charterers may wish to do the same in their bunker supply terms with their supplier.”

Read LR Class News 09/2022 here: https://www.lr.org/en/class-news-resources/09-22/

Find out more about North’s ‘Navigating Decarbonisation’ initiative at https://www.nepia.com/topics/navigating-decarbonisation/