Factory life can be boring in the whole world, except my factory
You have no system - "no system is the best system, as we can respond to changes faster than anybody" - so say me defacto boss then - he is not totally wrong, at that time that is
The sleeping giant has began to awaken - run by a bunch of enthusiastic technocrat - dedicated, hard working and do anything to meet buyers' requirement
The factory operators call them FOC committee - Free of charge, OT that is. The first shift operators saw them in the morning when they go home and the last shift still see them around when coming to work
What make them tick? I dont know but i followed through. The pay is good but not fantastic. The bonus is huge but not uncommon in Old style china man company. The only comment i can draw is RK is blessed. Later in my career in shipping, plantation, i found similar heroes there
During the management course, lecture told us that the first hour of work - the manager should close his door and plan for the day. When i drive to work every morning, I just wondering what fire need to put out today. What planning
When I first started i worked until maybe 10pm....... until one day one old timer tell me i can sit until 2 am in the morning there will be still unfinished business.....why.....because you are there
Maybe that's one of the reason i like about this job - there is no politics. The job is so taxing that you can volunteer or assume any responsibility or authority - it will be gladly presented to you
I started as QC head and normally this is the department say pass or fail and stop there. Production say it has produced the oil and up to the operation to move. Operation will say vessel is coming if no cargo it is not their responsibility
When QC take over the responsibility, there is no quarrel - it is gladly given to me. My experience outside the factory is beneficial for decision making. Of course I am young then and not afraid of decision making.
I do make mistakes sometimes but the spirit is there and everybody help to turn the tide. It was a wonderful 12 years working there until i was transfer to China - which is the second turning point of my life
Monday, June 14, 2010
Sunday, June 13, 2010
Entrepreneurship
After working for 7 years - think i am ready to run my own business. Venture out and tried it out and ended disastrously. Some year later attend a seminar on the road to entrepreneurship - i did everything they advise not to
1) Have enough capital
2) Not too many partners (or friends)
3) Study the market well - a lot of customers will said they'll support you before venturing out; but when you actually ventured out, their support vaporised
I come out with 3 other who were my better friend at that time. Think only one left who will still hug me when met outside. Maybe both of us beer drinkers have some common bonds
We joint-venture with the Japanese to form surveyor/laboratory company. Of course the Japanese suppose to deliver the customers but did not. Overhead is high with 4 managers and no business.
Inter disagreement is the biggest sore point - too much in fighting. The 1988 CNY is the most miserable time of my life. The saving is disappearing fast, 2nd daughter is just 1 year old and the company is collapsing
Then received a call from an old friend - he is looking for a laboratory manager for his factory. I recommended two of my friends to him and both declined. Well the factory at that time is indeed laughing stock of town. New boy in town and desperate to expand and hence a lot of confusion. But by then i am more desperate n the old friend call again, why don't i joined him
After i say yes, the news spread and received three calls
- one from wife's best friend - if i cannot survive in that company, call him out and he'll help me
- my drinking kaki call - he is the good friend of the ex-Chemist of the factory - "this is the hot seat and no body can sit there except me, and yet i am leaving" - my drinking kaki asked me i am sure
- then an old university mate called - laughing - when we graduate he went to the factory. Factory people are very square and boring and after working 7 yrs, he want to get out but i am getting in.
All are very encouraging calls indeed - but i have no much choice. There was a famous Chinese Movies at that time "Fu San Xing" - Journey to Tiger Moutain
"We know there are tigers in that moutain, and yet we plan our journey right across the Tiger Moutain"
Heroic? or Desperate
End up that switch is the 1st turning point of my career
1) Have enough capital
2) Not too many partners (or friends)
3) Study the market well - a lot of customers will said they'll support you before venturing out; but when you actually ventured out, their support vaporised
I come out with 3 other who were my better friend at that time. Think only one left who will still hug me when met outside. Maybe both of us beer drinkers have some common bonds
We joint-venture with the Japanese to form surveyor/laboratory company. Of course the Japanese suppose to deliver the customers but did not. Overhead is high with 4 managers and no business.
Inter disagreement is the biggest sore point - too much in fighting. The 1988 CNY is the most miserable time of my life. The saving is disappearing fast, 2nd daughter is just 1 year old and the company is collapsing
Then received a call from an old friend - he is looking for a laboratory manager for his factory. I recommended two of my friends to him and both declined. Well the factory at that time is indeed laughing stock of town. New boy in town and desperate to expand and hence a lot of confusion. But by then i am more desperate n the old friend call again, why don't i joined him
After i say yes, the news spread and received three calls
- one from wife's best friend - if i cannot survive in that company, call him out and he'll help me
- my drinking kaki call - he is the good friend of the ex-Chemist of the factory - "this is the hot seat and no body can sit there except me, and yet i am leaving" - my drinking kaki asked me i am sure
- then an old university mate called - laughing - when we graduate he went to the factory. Factory people are very square and boring and after working 7 yrs, he want to get out but i am getting in.
All are very encouraging calls indeed - but i have no much choice. There was a famous Chinese Movies at that time "Fu San Xing" - Journey to Tiger Moutain
"We know there are tigers in that moutain, and yet we plan our journey right across the Tiger Moutain"
Heroic? or Desperate
End up that switch is the 1st turning point of my career
Colour - the history and frustration in the early days
Before I joined the sugar industry - i used to complain about colour testing in oils & fats
Now I have joined the sugar industry - they have my prayer for colour testing :- take a sugar sample, dissolved in water, and take an absorptions reading reading using a spectrophotometer - a common lab instrument.
Why can's oil do the same??
The common method employed us oil is color measuring device called Lovibond tintometer. Take a sample of oil n filled into cell of length 5 1/4" cell for refined and 1" for crude. you view the color through an aperture and compare with some standard color discs in Red, Yellow, Blue
in unit 0.1, 0.2, 0.3......0.9, 1, 2 ,3, 4......9, 10, 20, 30, 40,
red disc is consider the "primary" color or main color
yellow disc is the "secondary" color or supporting color
by using red and yellow disc -- red + yellow, the method call for the naked eyes, even though trained or otherwise, to match the natural orange-color oil with artificial color slide. Of course it will not be 100% matching and subjective to operator error. The repeatability (ie within the same lab) is already high, not to mention inter-laboratory (between 2 different lab). Ever participate in AOCS Smalley cross check and an interlab reproducibility is 0.6Red is reported
As though it is not confusing enough, when palm oil industry first started in the early eighties - they bring in an Tintometer model "D" - this is a multi-purpose tintometer for all product from solid curry powder to liquid oil. This tintometer doest not correspond to the official AOCS Tintometer. Also the users observed a phenomeno - a 2.9Red oil is the same as 3.1 Red Oil - in other word 2.9 Red is darker than 3.0 Red. How come?
the industry normally used Red:yellow in 1:10 ratio, ie 2.9 Red 29 Yellow. To match this oil we used 4 disc - 0.9Red + 2Red + 9 Yellow + 20 Yellow whereas a 3Red 30Yellow oil use 2 disc ie 3 Red + 30 Yellow. The 2- disc less results in a lowering of the color being matched
Later the industry did attempt to bring in the actual aocs tintometer - called model "E" that can rectify problem with a compensating disc. However the industry discover model E give a higher color reading than model D and hence resistance
There was a period where by there is conflicting results due to model D or model E. I have not get in touch with the issue anymore and it seemed by now model D shud be obsolete and problem resolved, i think
Then the USA color come - they asking for Gardner color scale, FAC color etc..... then when Eastern Europe collapse and started to trade, we were horrified when the ex-communists buyer asking for Iodine Color???? what the hell is that
Finally going through some very very old textbook, those day when they don't even have tintometer, the oil chemists then compare color of oil with fixed amount iodine or dichromate dissolved in water. The Eastern block brethren is still using it in the 21st century. Well they are the buyers and we complied by taking our test tube and dissolved iodine with water to check the color of the oil
Of course the capitalist come to assistant again - Lovibond actually developed an Iodine Color Tintometer
having say so much bad thing about the Lovibond Tintometer, it did provide certain standard for the measuring of Refined Oil
However, the distinction stop here. In high color oil like crude palm oil, fatty acid etc the use of Lovibond is limited. Of course we can use a shorter cell to measure the color to give better matching but in the absent of any standard, it rarely used for commercial purpose - one of the problem is fixing the yellow or supporting color. The 1:10 ratio did not work here. Some lab fixed 60 yellow and start to adjust the red color to give the best match
Gardner scale is one used for high color - more for petrochemical industry
Another common scale for PFAD is the FAC color scale (FAC did not standard for Fatty Acid Color, as some trader misintepreted"
FAC color is in odd inter, 1, 3, 5, 7, 9, 11, then for some reason 11A, 11B, 11C and then 13, 15, 17........
CPKO normally around 5 - 9 but fresh PFAD 9 and deterioate very fast to 11C due to iron pick up
The blue color is only used when you have odd color like browish that you need the blue. so far i encounter only twice in my career - one from CPKO milled from burnt crude palm kernel seed, another time is the Crude Rapeseed oil from frost-damaged rapessed. Of course there is one time at our new refinery at china - the water-like refined rapeseed oil was match with Red, Yellow and Blue and nobody anything. Yours truly arrived and found the Tintometer is being assembled wrongly - not by the local but the expat "chemist" - can anyone guess who he is??
Now I have joined the sugar industry - they have my prayer for colour testing :- take a sugar sample, dissolved in water, and take an absorptions reading reading using a spectrophotometer - a common lab instrument.
Why can's oil do the same??
The common method employed us oil is color measuring device called Lovibond tintometer. Take a sample of oil n filled into cell of length 5 1/4" cell for refined and 1" for crude. you view the color through an aperture and compare with some standard color discs in Red, Yellow, Blue
in unit 0.1, 0.2, 0.3......0.9, 1, 2 ,3, 4......9, 10, 20, 30, 40,
red disc is consider the "primary" color or main color
yellow disc is the "secondary" color or supporting color
by using red and yellow disc -- red + yellow, the method call for the naked eyes, even though trained or otherwise, to match the natural orange-color oil with artificial color slide. Of course it will not be 100% matching and subjective to operator error. The repeatability (ie within the same lab) is already high, not to mention inter-laboratory (between 2 different lab). Ever participate in AOCS Smalley cross check and an interlab reproducibility is 0.6Red is reported
As though it is not confusing enough, when palm oil industry first started in the early eighties - they bring in an Tintometer model "D" - this is a multi-purpose tintometer for all product from solid curry powder to liquid oil. This tintometer doest not correspond to the official AOCS Tintometer. Also the users observed a phenomeno - a 2.9Red oil is the same as 3.1 Red Oil - in other word 2.9 Red is darker than 3.0 Red. How come?
the industry normally used Red:yellow in 1:10 ratio, ie 2.9 Red 29 Yellow. To match this oil we used 4 disc - 0.9Red + 2Red + 9 Yellow + 20 Yellow whereas a 3Red 30Yellow oil use 2 disc ie 3 Red + 30 Yellow. The 2- disc less results in a lowering of the color being matched
Later the industry did attempt to bring in the actual aocs tintometer - called model "E" that can rectify problem with a compensating disc. However the industry discover model E give a higher color reading than model D and hence resistance
There was a period where by there is conflicting results due to model D or model E. I have not get in touch with the issue anymore and it seemed by now model D shud be obsolete and problem resolved, i think
Then the USA color come - they asking for Gardner color scale, FAC color etc..... then when Eastern Europe collapse and started to trade, we were horrified when the ex-communists buyer asking for Iodine Color???? what the hell is that
Finally going through some very very old textbook, those day when they don't even have tintometer, the oil chemists then compare color of oil with fixed amount iodine or dichromate dissolved in water. The Eastern block brethren is still using it in the 21st century. Well they are the buyers and we complied by taking our test tube and dissolved iodine with water to check the color of the oil
Of course the capitalist come to assistant again - Lovibond actually developed an Iodine Color Tintometer
having say so much bad thing about the Lovibond Tintometer, it did provide certain standard for the measuring of Refined Oil
However, the distinction stop here. In high color oil like crude palm oil, fatty acid etc the use of Lovibond is limited. Of course we can use a shorter cell to measure the color to give better matching but in the absent of any standard, it rarely used for commercial purpose - one of the problem is fixing the yellow or supporting color. The 1:10 ratio did not work here. Some lab fixed 60 yellow and start to adjust the red color to give the best match
Gardner scale is one used for high color - more for petrochemical industry
Another common scale for PFAD is the FAC color scale (FAC did not standard for Fatty Acid Color, as some trader misintepreted"
FAC color is in odd inter, 1, 3, 5, 7, 9, 11, then for some reason 11A, 11B, 11C and then 13, 15, 17........
CPKO normally around 5 - 9 but fresh PFAD 9 and deterioate very fast to 11C due to iron pick up
The blue color is only used when you have odd color like browish that you need the blue. so far i encounter only twice in my career - one from CPKO milled from burnt crude palm kernel seed, another time is the Crude Rapeseed oil from frost-damaged rapessed. Of course there is one time at our new refinery at china - the water-like refined rapeseed oil was match with Red, Yellow and Blue and nobody anything. Yours truly arrived and found the Tintometer is being assembled wrongly - not by the local but the expat "chemist" - can anyone guess who he is??
Tuesday, June 8, 2010
Melting Point, MP
I hate this test
The official method used is by AOCS Cc3-25
AOCS - American Oil Chemists Society - reputable
CC 3- method numer
25??? hehe stand for 1925
At this age palm oil industry is still using method formulated about 100yrs ago because at that time there is no better instrumentation for testing the plasticity.
Take a capillary tube, filled up the fat, solidified for 16 hr and melt slowly in a beaker of water and at the point where the fat is ABOUT to melt and melting, take the temperature
sound simple but there are so many factors affecting it making the reproducibility so difficult. The American couldn't be bother as they are only interested in Tallow which is high melting and easier to handle. Palm Oil, with the liquid fractio Olein 24deg C, is a nightmare
When I first joined, Madam Siew WL conducted the 1st round round-robin and give a reproducibility of 0.5 deg C. Very good indeed - bec if selected few lab run by experienced and dedicated chemists - the first generation
There I come along with a bunch new chemists and the second cross check is 1 deg C.
A lot of commercial pressure eventually chemists called each other to "cross-check" before reporting to the round-robin .....eventually ..... but life goes on...... but then we produced SuperOlein - MP 18, how to test even in air-cond lab of ambinet 24degC. Some jungle mill the lab has no air-cond and site next to the stainless tank of Crude Palm Stearin ----it's an oven.
Until today Msia lab still report 18 for SuperOlein but the Chinese Conter-part say it is 15 deg C
Years ago certain surveyor-laboratory always report mp 1 deg C than rest of the community - generally complied but producing mp around 23 so that the surveyor will report 24 which is within the Poram specs..... they live happily ever after until one day a big buyer open a spec of mp 22 max
The smart shipper who got the contract distribute the contract to 4 other shipper and of course all five are declare off-spec - So it is the surveyor vs the community
Actually both are correct. The method called for "stir slowly with agitation during melting" The Surveyor chemist - being a slow motion person, when being asked to do something slowly, stir extremely slow and results in reporting a higher mpt.
If only we can get rid of the spec especially for low melting oil
For Palm Oil it is rather useful - going back to the IV problem. Generally there is an IV-MP loose correlation. A normal cpo will have 51-52 IV and 36-37 MP. It is rather unfortunate that Poram spec give allowance for MP 33-39 & IV 50-55. Some smart Indian/Pakistan trader takes advantage of this yr ago but blending 5-10% Sterin into PO given a 50.1 IV and 38.8 MP to the sub-continent. The Indian/Pakistan fight back by imposing the melting point 37 max and IV 51 - 54.
Melting Point for Stearin is ok until you sell soft or blended Stearin of IV 42 MP 48 - its a nightmare with the Middle East market - the mt is on the so-called inflection point - highest interlab error of 2-3 deg C.
The official method used is by AOCS Cc3-25
AOCS - American Oil Chemists Society - reputable
CC 3- method numer
25??? hehe stand for 1925
At this age palm oil industry is still using method formulated about 100yrs ago because at that time there is no better instrumentation for testing the plasticity.
Take a capillary tube, filled up the fat, solidified for 16 hr and melt slowly in a beaker of water and at the point where the fat is ABOUT to melt and melting, take the temperature
sound simple but there are so many factors affecting it making the reproducibility so difficult. The American couldn't be bother as they are only interested in Tallow which is high melting and easier to handle. Palm Oil, with the liquid fractio Olein 24deg C, is a nightmare
When I first joined, Madam Siew WL conducted the 1st round round-robin and give a reproducibility of 0.5 deg C. Very good indeed - bec if selected few lab run by experienced and dedicated chemists - the first generation
There I come along with a bunch new chemists and the second cross check is 1 deg C.
A lot of commercial pressure eventually chemists called each other to "cross-check" before reporting to the round-robin .....eventually ..... but life goes on...... but then we produced SuperOlein - MP 18, how to test even in air-cond lab of ambinet 24degC. Some jungle mill the lab has no air-cond and site next to the stainless tank of Crude Palm Stearin ----it's an oven.
Until today Msia lab still report 18 for SuperOlein but the Chinese Conter-part say it is 15 deg C
Years ago certain surveyor-laboratory always report mp 1 deg C than rest of the community - generally complied but producing mp around 23 so that the surveyor will report 24 which is within the Poram specs..... they live happily ever after until one day a big buyer open a spec of mp 22 max
The smart shipper who got the contract distribute the contract to 4 other shipper and of course all five are declare off-spec - So it is the surveyor vs the community
Actually both are correct. The method called for "stir slowly with agitation during melting" The Surveyor chemist - being a slow motion person, when being asked to do something slowly, stir extremely slow and results in reporting a higher mpt.
If only we can get rid of the spec especially for low melting oil
For Palm Oil it is rather useful - going back to the IV problem. Generally there is an IV-MP loose correlation. A normal cpo will have 51-52 IV and 36-37 MP. It is rather unfortunate that Poram spec give allowance for MP 33-39 & IV 50-55. Some smart Indian/Pakistan trader takes advantage of this yr ago but blending 5-10% Sterin into PO given a 50.1 IV and 38.8 MP to the sub-continent. The Indian/Pakistan fight back by imposing the melting point 37 max and IV 51 - 54.
Melting Point for Stearin is ok until you sell soft or blended Stearin of IV 42 MP 48 - its a nightmare with the Middle East market - the mt is on the so-called inflection point - highest interlab error of 2-3 deg C.
Monday, June 7, 2010
Iodine Value (IV)
IV is the most widely use test to identify the oil's purity and check contamination and/or adulteration
It is a measure of the unsaturated fatty acid in the oil (see oil composition)
Typical IV value
Coconut Oil - 9
Palm Kernel Oil - 18
Palm Oil - 52
Palm Olein - 56
Palm Stearin - 25 to 33
Rapeseed Oil - 110
Maize Oil - 103 - 125
Soyabean Oil - 130
Linseed Oil - 180
The test method is fast, reliable and especially useful in identifying mixing of high IV oil into loo IV. The other way round could be tricky and further test such as FAC by GLC is required (Fatty acid composition by Gas-Liquid Chromatography). Non Chemist trader just stick to GLC or GC as it is commonly understood, tough technically no correct. GLC or GC is a testing method
Some typical example of IV test for contamination
1. CPKO in CCNO
There are no standard trade specification for CCNO - range from 10.5 max to 12 max while typical value of Indonesia/Phillipine origin is around 9. In those day when there is good price disparity and when the spec is 12 max, inevitable 5-10% CPKO went into CCNO (yes - you can calculate by numerical ratio the resultant mixture IV)
2. Palm Oil IV 50 - 55 while typical is 51 - 52. Unfortunately CPO domestic spec has no IV spec - when you received IV 50.1 and complained, seller will claimed it is bottom stock cargo, or some 5% stearin is being added.
3. Maize Oil has wide range of IV due to origin - some soya oil will added in Maize Oil due to price disparity
4. Soyaoil from south america - watch out linseed contamination when yr IV is excessively high
It is a measure of the unsaturated fatty acid in the oil (see oil composition)
Typical IV value
Coconut Oil - 9
Palm Kernel Oil - 18
Palm Oil - 52
Palm Olein - 56
Palm Stearin - 25 to 33
Rapeseed Oil - 110
Maize Oil - 103 - 125
Soyabean Oil - 130
Linseed Oil - 180
The test method is fast, reliable and especially useful in identifying mixing of high IV oil into loo IV. The other way round could be tricky and further test such as FAC by GLC is required (Fatty acid composition by Gas-Liquid Chromatography). Non Chemist trader just stick to GLC or GC as it is commonly understood, tough technically no correct. GLC or GC is a testing method
Some typical example of IV test for contamination
1. CPKO in CCNO
There are no standard trade specification for CCNO - range from 10.5 max to 12 max while typical value of Indonesia/Phillipine origin is around 9. In those day when there is good price disparity and when the spec is 12 max, inevitable 5-10% CPKO went into CCNO (yes - you can calculate by numerical ratio the resultant mixture IV)
2. Palm Oil IV 50 - 55 while typical is 51 - 52. Unfortunately CPO domestic spec has no IV spec - when you received IV 50.1 and complained, seller will claimed it is bottom stock cargo, or some 5% stearin is being added.
3. Maize Oil has wide range of IV due to origin - some soya oil will added in Maize Oil due to price disparity
4. Soyaoil from south america - watch out linseed contamination when yr IV is excessively high
Sunday, June 6, 2010
MNI - Moisture & Impuriteis
All crude or refined oil carried with them some inherent moisture (water) & insoluble impurities
When MNI is too excessive, there will be water separation and sedimentation, especially in crude oil
Generally speaking, crude oil conform to commercial specification as per standard trading rules are generally homogeneous with no visible or little impurities.
Refined oil MNI spec is 0.1% but generally <0.02% - anything higher than that you will see free water droplets - likely cause sampling during raining day with small umbrella
Impurities generally is about 0.02% for crude and 0.01% for refined
Standard specification for CPO - MNI 0.25% for Malaysia domestic specs but 0.5% for Indonesian CPO
When MNI is too excessive, there will be water separation and sedimentation, especially in crude oil
Generally speaking, crude oil conform to commercial specification as per standard trading rules are generally homogeneous with no visible or little impurities.
Refined oil MNI spec is 0.1% but generally <0.02% - anything higher than that you will see free water droplets - likely cause sampling during raining day with small umbrella
Impurities generally is about 0.02% for crude and 0.01% for refined
Standard specification for CPO - MNI 0.25% for Malaysia domestic specs but 0.5% for Indonesian CPO
Saturday, June 5, 2010
FFA deterioation
FFA is the most important criteria in almost all trading contracts and always a subject of contention.
This is due to the inherent hydrolysis reaction of water on oil, converting oil to water.
FFA hydrolysis rate depend on a number of factor, such as temperature, moisture content and shipment period
Of course - sometimes people cheat.
Generally based on experience, a good crude, even cpo with heating, are relatively stable in FFA. I have ever kept 3000mt Crude Soyabean Oil for 2 years and 1000mt Crude Groundnut Oil for 1 year with no significant increase in FFA. (why i keep so long, must asked the pseudo-Japanese trader)
But I also received a shipment of Crude Soyabean Oil with FFA increase 0.1% per week. When the courier sample from loadport arrived 1 week after loading, the FFA has differ from loadport results by 0.1%. At first we thought the shipper cheated, but one week later the same sample was tested FFA increase by another 0.1%. Further analysis by Dr. Verwey lab indicate the presence of certain bacteria that catalyze the FFA deterioration. Finally vessel arrive 40 days later and FFA increase by almost 0.5%
Crude Rice-Bran Oil, if not properly treated, could have FFA increase by 1% per day. I ever received an "Rice-Bran Acid Oil" of FFA 35% - too low for Acid Oil. Later found it is Crude Rice Bran Oil that has to be downgraded
The same enzymatic action on Crude Palm Oil resulted high FFA during wet season. The fruits need to be sent to the factory as soon as possible and first step is sterilization - using steam to soften the fruits and at the same time kill the enzyme. During rainy season when there is a delay in transport of fruits to the mill, FFA increases
As a summary - A good crude (with lower FFA/Moisture) will have a better stability than a poor crude. If one is loading CPO shipment from Malaysia FFA <4%, MNI < 0.25%, you shud be at east even the destination is Europe 40 days away.
Similarly A crude Soya oil from USA of FFA <0.75
Refined Oil is however, generally unstable, despite the enzyme is killed & FFA is <0.1% and MNI <0.1%. The FFA deterioration is fastest in heating oil like stearin than non-heated oil like olein. No scientific study but speculation is
a) Hydrolysis is a naturally occurring process. Chemical reaction rate generally fasten by raise of temperature
b) naturally occurring compound in crude actually protect the oil - e.g. the crude that i have been keeping for 1-2 yrs).Refining removed all these goodies
c) during Fractionation, the unsaponifiable matter is concentrated in the Stearin. Presumably, these are the "rubbish" that hasten the hydrolysis reaction
There is even an on-board study on FFA rate of increase from Msia to Korea - I remember the rate is about 0.01% for a 7-days journey. So for the rule of thumb if you want to be safe for the Chinese Market (the official surveyor is a communist bureaucrat), the safe level to ship is 0.07% + 0.01% of increase + 0.01% of testing uncertainty = 0.09% at disport
Of course time has change some Chinese port is very liberal but in those day when CCIB issue certificate of FFA 0.11%, you have to sell at a discount to local market because the oil is "olein" and not "refined olein"
This is due to the inherent hydrolysis reaction of water on oil, converting oil to water.
FFA hydrolysis rate depend on a number of factor, such as temperature, moisture content and shipment period
Of course - sometimes people cheat.
Generally based on experience, a good crude, even cpo with heating, are relatively stable in FFA. I have ever kept 3000mt Crude Soyabean Oil for 2 years and 1000mt Crude Groundnut Oil for 1 year with no significant increase in FFA. (why i keep so long, must asked the pseudo-Japanese trader)
But I also received a shipment of Crude Soyabean Oil with FFA increase 0.1% per week. When the courier sample from loadport arrived 1 week after loading, the FFA has differ from loadport results by 0.1%. At first we thought the shipper cheated, but one week later the same sample was tested FFA increase by another 0.1%. Further analysis by Dr. Verwey lab indicate the presence of certain bacteria that catalyze the FFA deterioration. Finally vessel arrive 40 days later and FFA increase by almost 0.5%
Crude Rice-Bran Oil, if not properly treated, could have FFA increase by 1% per day. I ever received an "Rice-Bran Acid Oil" of FFA 35% - too low for Acid Oil. Later found it is Crude Rice Bran Oil that has to be downgraded
The same enzymatic action on Crude Palm Oil resulted high FFA during wet season. The fruits need to be sent to the factory as soon as possible and first step is sterilization - using steam to soften the fruits and at the same time kill the enzyme. During rainy season when there is a delay in transport of fruits to the mill, FFA increases
As a summary - A good crude (with lower FFA/Moisture) will have a better stability than a poor crude. If one is loading CPO shipment from Malaysia FFA <4%, MNI < 0.25%, you shud be at east even the destination is Europe 40 days away.
Similarly A crude Soya oil from USA of FFA <0.75
Refined Oil is however, generally unstable, despite the enzyme is killed & FFA is <0.1% and MNI <0.1%. The FFA deterioration is fastest in heating oil like stearin than non-heated oil like olein. No scientific study but speculation is
a) Hydrolysis is a naturally occurring process. Chemical reaction rate generally fasten by raise of temperature
b) naturally occurring compound in crude actually protect the oil - e.g. the crude that i have been keeping for 1-2 yrs).Refining removed all these goodies
c) during Fractionation, the unsaponifiable matter is concentrated in the Stearin. Presumably, these are the "rubbish" that hasten the hydrolysis reaction
There is even an on-board study on FFA rate of increase from Msia to Korea - I remember the rate is about 0.01% for a 7-days journey. So for the rule of thumb if you want to be safe for the Chinese Market (the official surveyor is a communist bureaucrat), the safe level to ship is 0.07% + 0.01% of increase + 0.01% of testing uncertainty = 0.09% at disport
Of course time has change some Chinese port is very liberal but in those day when CCIB issue certificate of FFA 0.11%, you have to sell at a discount to local market because the oil is "olein" and not "refined olein"
Monday, May 31, 2010
Free Fatty Acid
All oil will under hydrolysis (action with water liberating one the of fatty acid - this liberated fatty acid is called FFA or Free Fatty Acid
Oil (Triglyceride) + Water - FFA + Diglyceide (DG, ie One glycerol + 2 Fatty Acid)
So during the raining season, CPO quality deteriorate in FFA increase due to the water come into contact with the fruits (especially the part that is being bruise when the fruit bunch drop onto the ground)
Free Fatty Acid is the most important quality parameter in all oil trades, crude or refined, and is well governed by established trading rules
FFA is always expressed in terms of the majority of the fatty acid molecules present
e.g. of FFA in oil
CPO (as palmitic) - 5% max (Poram)
CPKO (as Lauric) - 4% max (Meoma)
CDSBO (as Oleic) - 0.75 % max (NOPA) or 1% max (NSPA)
Another parameter that sometimes used is called Acid Value - this parameter need not mentioned the fatty acid involved
Convertion
Acid Value = FFA as Oleic x 2 or FFA as pamitic x 2.19 or ffa as lauric x 2.805
During the refining, FFA is reduce to 0.05 - 0.1%. For most modern Food Act legilation, FFA < 0.2 to be fit for human consumption (funny concept -our ancestor have been consume crude peanut oi (chinese), crude coconut oil (india), crude palm oil (even now at africa), and all of them are healthy)
Why??.....to be continue
Oil (Triglyceride) + Water - FFA + Diglyceide (DG, ie One glycerol + 2 Fatty Acid)
So during the raining season, CPO quality deteriorate in FFA increase due to the water come into contact with the fruits (especially the part that is being bruise when the fruit bunch drop onto the ground)
Free Fatty Acid is the most important quality parameter in all oil trades, crude or refined, and is well governed by established trading rules
FFA is always expressed in terms of the majority of the fatty acid molecules present
e.g. of FFA in oil
CPO (as palmitic) - 5% max (Poram)
CPKO (as Lauric) - 4% max (Meoma)
CDSBO (as Oleic) - 0.75 % max (NOPA) or 1% max (NSPA)
Another parameter that sometimes used is called Acid Value - this parameter need not mentioned the fatty acid involved
Convertion
Acid Value = FFA as Oleic x 2 or FFA as pamitic x 2.19 or ffa as lauric x 2.805
During the refining, FFA is reduce to 0.05 - 0.1%. For most modern Food Act legilation, FFA < 0.2 to be fit for human consumption (funny concept -our ancestor have been consume crude peanut oi (chinese), crude coconut oil (india), crude palm oil (even now at africa), and all of them are healthy)
Why??.....to be continue
The compositon of oil
Oil is mixture of triglyceride molecules
will be confusing for non-chemistry
Triglyceride molecule = 1 glycerol + 3 Fatty acids combined chemically together
There are many types of fatty acids and characterized by their number of carbon atoms, and always in even number - from 6 - 24
common fatty acid
C12 - Lauric acid (found in coconut/palm kernel oil)
C16 - Palmitic (found in palm oil)
these are call saturated fatty acid
When carbon number getting bigger, there will be unsaturation or presence of double bind
common unsaturated fatty acid
C18.1 Oleic acid (found in Olive Oil)
C18.2 Linoleic acid (Soyabean Oil)
C18.3 Linolenic acid (Linseed Oil)
C22.1 Euricic (Rapedseed Oil)
The characteristic of the oil is determined by the carbon number and the unsaturation
So if you analysis palm oil, typical composition
C12 - 0.4%
C16 - 42%
c18.1 - 38%
others - C14, C18, C18.2 etc
will be confusing for non-chemistry
Triglyceride molecule = 1 glycerol + 3 Fatty acids combined chemically together
There are many types of fatty acids and characterized by their number of carbon atoms, and always in even number - from 6 - 24
common fatty acid
C12 - Lauric acid (found in coconut/palm kernel oil)
C16 - Palmitic (found in palm oil)
these are call saturated fatty acid
When carbon number getting bigger, there will be unsaturation or presence of double bind
common unsaturated fatty acid
C18.1 Oleic acid (found in Olive Oil)
C18.2 Linoleic acid (Soyabean Oil)
C18.3 Linolenic acid (Linseed Oil)
C22.1 Euricic (Rapedseed Oil)
The characteristic of the oil is determined by the carbon number and the unsaturation
So if you analysis palm oil, typical composition
C12 - 0.4%
C16 - 42%
c18.1 - 38%
others - C14, C18, C18.2 etc
Friday, May 28, 2010
Oil Chemistry - the very basic
Oil Chemistry - the basic , very
RESIGNED AND ENDING 20MONTHS OF SURVEYOR AND BACK TO BASIC - WORKING AS CHEMIST IN INDEPENDENT LABORATORY.
Thanks to the new boss who is kind and academic - learn a lot of palm oil and its practical approach to solve commercial dispute
This is the famous PORAM spec
FFA
MNI
IV
MP
Color
Thanks to the knowledgeable founding member of Malaysian Palm Oil Industry - this is a simple and practical specification that cover quality (FFA, MNI, Color) and indicative test for oil characteristic to avoid adulteration/contamination (IV, MP). The testing method may have its undesirable reproducibility problem but over the years the industry has accepted it.......until the Indonesia Palm Oil comes along
The Indian/Pakistan fuzzy buyers had claimed the spec is too simple (due to "adviser" with vested interest) and come out with their respective but same STC/GCP respectively) but if u analyse the spec it is
PORAM
+ Cloud Point (the reproducibility as bad as mpt - give rise to more argument
+ Refractive index + density + (Not an indicative test as all)
+ Sap Value and Unsap Matter (laborious testing procedure and less indicative compare to IV)
+ certify oil is bland in taste/falvor, free from contamination, colouring or flavouring matter,,,,,,,,,,,,,,,, and fit for human consumption"
Basically given more revenue to the testing laboratory, hehe
RESIGNED AND ENDING 20MONTHS OF SURVEYOR AND BACK TO BASIC - WORKING AS CHEMIST IN INDEPENDENT LABORATORY.
Thanks to the new boss who is kind and academic - learn a lot of palm oil and its practical approach to solve commercial dispute
This is the famous PORAM spec
FFA
MNI
IV
MP
Color
Thanks to the knowledgeable founding member of Malaysian Palm Oil Industry - this is a simple and practical specification that cover quality (FFA, MNI, Color) and indicative test for oil characteristic to avoid adulteration/contamination (IV, MP). The testing method may have its undesirable reproducibility problem but over the years the industry has accepted it.......until the Indonesia Palm Oil comes along
The Indian/Pakistan fuzzy buyers had claimed the spec is too simple (due to "adviser" with vested interest) and come out with their respective but same STC/GCP respectively) but if u analyse the spec it is
PORAM
+ Cloud Point (the reproducibility as bad as mpt - give rise to more argument
+ Refractive index + density + (Not an indicative test as all)
+ Sap Value and Unsap Matter (laborious testing procedure and less indicative compare to IV)
+ certify oil is bland in taste/falvor, free from contamination, colouring or flavouring matter,,,,,,,,,,,,,,,, and fit for human consumption"
Basically given more revenue to the testing laboratory, hehe
Bill of Lading, shore figure or ship's figure?
One of the most confusing aspect of BL figure is using shore figure
After some 25yr with traders, i always thought shore figure as BL figure is engrave in stone in bulk oil industries
the last 5 yrs i spent some times with the chartering people & start to see a new perspective in bl figure
All official contracts, poram, fosfa, have inevitability bind bl figure to shore figure - this practice is based on technical rather than the legal concept. Any way buyer-seller accepted it and it become industrial practice and never been really challenge in arbitration or court. The court has great reluctance to challenge the established trading rules unless in involved principle of law.
The what if the challenge involved ship's owner or charterer? Can you sue ship's owner for outturn shortage when there is a ship-shore difference at time of loading?
In the good old days, the scenario is as followed
BL based on shore : 1000mt
Ship's figure at l/port : 900
ship's figure at d/port : 900
Outturn : 900
Owner has no liability on this case as ship's figure is used as a guide only. BL based on shore as given to Owner - Quantity and Quality unknown to owner and hence there is no liability. Unless one can prove there is a hidden compartment in the vessel that stowed the 100mt, the ship's has no ability
Now this is what u called the good old days - the gentlemen
Now the legal challenge - when u sell cnf and at disport, the buyer or its insurance company at some fierce continent - arrest the vessel and hold them responsible - why?
go back to what is the meaning of BL?
it is an official receipt of oil - if vessel received 900 but issued 1000, it means vessl has received 1000mt, period and hence responsible for the shortage.
If one is confused -go back to non-bulk cargo. When you load 1000 cartons to the ship, there is always one or two telly clerk to count the number when being loaded into the ship's hold. The Master will issued bl based on its own telly on quantity loaded into the ship's hold. Master has the rights to reject the carton if it is not in the sound condition, e.g, torn, or it clause the bl ie no more clean bl
After several several round to the disport insurance and/or buyer, PNI club has advise ship's owner to issue bl based on ship's figure if the ship-shore difference is too great. If charterer insisted on shore, the owner require the letter of indemnity
After some 25yr with traders, i always thought shore figure as BL figure is engrave in stone in bulk oil industries
the last 5 yrs i spent some times with the chartering people & start to see a new perspective in bl figure
All official contracts, poram, fosfa, have inevitability bind bl figure to shore figure - this practice is based on technical rather than the legal concept. Any way buyer-seller accepted it and it become industrial practice and never been really challenge in arbitration or court. The court has great reluctance to challenge the established trading rules unless in involved principle of law.
The what if the challenge involved ship's owner or charterer? Can you sue ship's owner for outturn shortage when there is a ship-shore difference at time of loading?
In the good old days, the scenario is as followed
BL based on shore : 1000mt
Ship's figure at l/port : 900
ship's figure at d/port : 900
Outturn : 900
Owner has no liability on this case as ship's figure is used as a guide only. BL based on shore as given to Owner - Quantity and Quality unknown to owner and hence there is no liability. Unless one can prove there is a hidden compartment in the vessel that stowed the 100mt, the ship's has no ability
Now this is what u called the good old days - the gentlemen
Now the legal challenge - when u sell cnf and at disport, the buyer or its insurance company at some fierce continent - arrest the vessel and hold them responsible - why?
go back to what is the meaning of BL?
it is an official receipt of oil - if vessel received 900 but issued 1000, it means vessl has received 1000mt, period and hence responsible for the shortage.
If one is confused -go back to non-bulk cargo. When you load 1000 cartons to the ship, there is always one or two telly clerk to count the number when being loaded into the ship's hold. The Master will issued bl based on its own telly on quantity loaded into the ship's hold. Master has the rights to reject the carton if it is not in the sound condition, e.g, torn, or it clause the bl ie no more clean bl
After several several round to the disport insurance and/or buyer, PNI club has advise ship's owner to issue bl based on ship's figure if the ship-shore difference is too great. If charterer insisted on shore, the owner require the letter of indemnity
Thursday, May 27, 2010
Examples of Ship-shore difference
Example 1
---------
A Japanese Vessel loaded 6000 mt off Dumai port from certain infamous installation. Ship shore difference 29mt or 0.48% (<0.5%). Everybody is happy. Shipping document signed & vessel release and info relay to Principal at 0800hr. GM, FM, OM and yrs truly received info and equally happy & filed the fax. Very rarely one got good loading figure from Dumai
At about the same time, our workaholic CEO flew off to HK for meeting and flew back on the same day after the meeting. Understanding he went back to the office to pick up the faxes (yes, it's correct. Those day no email and he read all faxes. When we have email, he read all email and faxes). Before midnight all the above 3M receiving screaming call from the CEO. One of them did not pick up the call as he is soundly asleep. The luck did not last - next morning at 7am while driving to work, the screaming call arrived
At discharge port, as expected, outturn lost is 30mt and buyer scream
Lesson learn
a) Japanese vessel have good vef - u dont even have to check
b) take 0.5% with a pinch of salt - supposedly meant for skin loss - if 30mt is about the weight of 2 trucks and that's a lot of oil
c)Beware of the infamous installation - u have no hope of good ship-shore figure. If you do, you must be mistaken
Example 2
---------
It is no more 1980 - we have enter int0 21st century. But we never learned
Loaded 20,000mt CPO at Indon port by barges (yes, B/L still based on shore) to India and discrepancy is 100mt or 0.5%. Again everybody is happy and vsl reached India and discharged. Outturn short by 100mt. A a lot of screaming from buyer but everybody say it is VEF but nobody bother to check
Vel second voyage now calling different port and again another 100mt short but this time it is bound for china. People tend to forget that China is Communist Country despite its growth & prosperity. When China Insurance learn of the ship-shore difference, it obtain a court order to arrest the vessel (Court Order to arrest vsl is commercially not possible in Msia, doable in Spore but in China anyone can arrest the vessel, even CCIB, the govt surveyor). Vsl PNI have to put forward Bank Guarantee before vessel can be release. Shipper indemnify ship's owner and cargo is discharge and as expected, short 100mt
If one analyze the loading figure, the VEF is ok for the set of tanks loaded for China and one should take preventive action
Example 3
---------
Funny example
Loading completed on a lazy saturday afternoon in leisure East Malaysia Port. We have a gain in ship's figure even thought VEF is good. There should not be any problem but to make record looks good, hei, Master, why dont we lower the ship figure to match the the shore/bl figure. Well, why not, Master say ok
Come monday factory come to life and stock take showed 100 mt short and this trace back to the loading on saturday. Oops, there is a calculation mistake on the shore figure
Panic call to ship owner to adjust the BL figure. Adjust BL is already a no-no, what more with a huge ship-shore difference and the vessel is destined to another infamous snake-hole in the Sub-continenet. It is easier to ask Sister Theresa to post center page for Playboy
Vessel is then asked to divert to Singapore, discharge into the shore to re-established the B/L, and then loaded back into the vessel. All at the cost of shipper
Lesson learn - go back to basic - plse check the shore figure before venture into complicated area like vef
Example 4
---------
Actually some yr before that, the same factory actually send a CPOL vessel to associate company in that show a gain of 100mt as compare to VEF
After discharge, the China factory manager call the shipper thanking him for the 100mt extra but wish that the 100 mt to be CPOL instead of CPO
U cannot say they did not learn - they did and know the implication of VEF and a little knowledge is a very dangerous thing
Example 5
---------
This is a god-bless-me example
U r attending the CEO 60-something birthday with all traders and Chief Treader and Senior Chief Trader and sb senior chief trader
Phone call and Dumai again - 150mt short for a 20,000mt vessel. Its a infamous snake hole at right but some people have overlooked a simple precaution steps - to load shipper by shipper so as to pint point the king copra. No, its commingle and all shipper oil are rojak into few common tanks.
Letters of Protest are issued to all shipper and all shipper say "not me"
The vessel is sold based land quantity to some gentleman buyer - manage to convince the ship's owner to use shore figure as BL figure
On arrival to destination,prior to unloading, some ship's crew open the wrong valve and contaminate the whole cargo (yes the 20,000 + some other oil on board) and we claimed total loss
Praise the Lord and pass the ketchup
---------
A Japanese Vessel loaded 6000 mt off Dumai port from certain infamous installation. Ship shore difference 29mt or 0.48% (<0.5%). Everybody is happy. Shipping document signed & vessel release and info relay to Principal at 0800hr. GM, FM, OM and yrs truly received info and equally happy & filed the fax. Very rarely one got good loading figure from Dumai
At about the same time, our workaholic CEO flew off to HK for meeting and flew back on the same day after the meeting. Understanding he went back to the office to pick up the faxes (yes, it's correct. Those day no email and he read all faxes. When we have email, he read all email and faxes). Before midnight all the above 3M receiving screaming call from the CEO. One of them did not pick up the call as he is soundly asleep. The luck did not last - next morning at 7am while driving to work, the screaming call arrived
At discharge port, as expected, outturn lost is 30mt and buyer scream
Lesson learn
a) Japanese vessel have good vef - u dont even have to check
b) take 0.5% with a pinch of salt - supposedly meant for skin loss - if 30mt is about the weight of 2 trucks and that's a lot of oil
c)Beware of the infamous installation - u have no hope of good ship-shore figure. If you do, you must be mistaken
Example 2
---------
It is no more 1980 - we have enter int0 21st century. But we never learned
Loaded 20,000mt CPO at Indon port by barges (yes, B/L still based on shore) to India and discrepancy is 100mt or 0.5%. Again everybody is happy and vsl reached India and discharged. Outturn short by 100mt. A a lot of screaming from buyer but everybody say it is VEF but nobody bother to check
Vel second voyage now calling different port and again another 100mt short but this time it is bound for china. People tend to forget that China is Communist Country despite its growth & prosperity. When China Insurance learn of the ship-shore difference, it obtain a court order to arrest the vessel (Court Order to arrest vsl is commercially not possible in Msia, doable in Spore but in China anyone can arrest the vessel, even CCIB, the govt surveyor). Vsl PNI have to put forward Bank Guarantee before vessel can be release. Shipper indemnify ship's owner and cargo is discharge and as expected, short 100mt
If one analyze the loading figure, the VEF is ok for the set of tanks loaded for China and one should take preventive action
Example 3
---------
Funny example
Loading completed on a lazy saturday afternoon in leisure East Malaysia Port. We have a gain in ship's figure even thought VEF is good. There should not be any problem but to make record looks good, hei, Master, why dont we lower the ship figure to match the the shore/bl figure. Well, why not, Master say ok
Come monday factory come to life and stock take showed 100 mt short and this trace back to the loading on saturday. Oops, there is a calculation mistake on the shore figure
Panic call to ship owner to adjust the BL figure. Adjust BL is already a no-no, what more with a huge ship-shore difference and the vessel is destined to another infamous snake-hole in the Sub-continenet. It is easier to ask Sister Theresa to post center page for Playboy
Vessel is then asked to divert to Singapore, discharge into the shore to re-established the B/L, and then loaded back into the vessel. All at the cost of shipper
Lesson learn - go back to basic - plse check the shore figure before venture into complicated area like vef
Example 4
---------
Actually some yr before that, the same factory actually send a CPOL vessel to associate company in that show a gain of 100mt as compare to VEF
After discharge, the China factory manager call the shipper thanking him for the 100mt extra but wish that the 100 mt to be CPOL instead of CPO
U cannot say they did not learn - they did and know the implication of VEF and a little knowledge is a very dangerous thing
Example 5
---------
This is a god-bless-me example
U r attending the CEO 60-something birthday with all traders and Chief Treader and Senior Chief Trader and sb senior chief trader
Phone call and Dumai again - 150mt short for a 20,000mt vessel. Its a infamous snake hole at right but some people have overlooked a simple precaution steps - to load shipper by shipper so as to pint point the king copra. No, its commingle and all shipper oil are rojak into few common tanks.
Letters of Protest are issued to all shipper and all shipper say "not me"
The vessel is sold based land quantity to some gentleman buyer - manage to convince the ship's owner to use shore figure as BL figure
On arrival to destination,prior to unloading, some ship's crew open the wrong valve and contaminate the whole cargo (yes the 20,000 + some other oil on board) and we claimed total loss
Praise the Lord and pass the ketchup
Thursday, May 20, 2010
Vessel Experience Factor
Vessel Experience Factory VEF defined as a ratio
Vessel weight
-------------------------------- = VEF
B/L weight established at shore
If VEF > 1, vsl is over-calibrated,
<1 , under calibrated
There is some elaborate and systematic calculation involved in establishing VEF, e.f last five voyage & some statistical method in rejecting outllayer
VEF has been used quite extensively in petroleum shipment but to applied to palm oil pose some problem, bec
1) Petroleum - normally involved the whole vessel involving all tanks and single product. In palm oil normally problem arise over cerain parcel occupied some of the tanks
2) It is still not an industrial practice for palm oil to demand for VEF - resistance from ship's Master/Owner in releasing the VEF. (Some vessel claimed there is no VEF which is rubbish - the raw data are there, just provide the last 5 cargo as per vessel Cargo Log Book and you can calculate the VEF)
When using VEF in applying Palm Oil shipment consider the following palm oil factor
1) loading mode - if loading at Indonesia off-port, likely is it by barge-to-ship transfer. The barge is non-heated and there will be cargo ROB (remained on board). Some ROB are intentionally created as obvious
2) Heated cargo like PFAD/Stearin - view the loading temperature. if it is too low, then check whether there is stripping of shore tank
3) Generally rule of thumb, normally Japanese/Korean Vessel has good vef, old vsl and/or Russian ship, god help you
First recheck all shore calculation and pipeline properly cleared.
Then look at the vessel experience
Check with Vsl Master the last 5 loading to established the usual ship-shore difference - generally known as Vessel Experience Factor
rule of thumb
a) Japanese vessl are generally calibrated and give good shore-ship figure
b) Old vessel like Russian has no calibration figure
c) preferably vef based on whole vsl
Take the 0.5% with a pinch of salt - for 6000mt vsl 0.5% is 30mt - if it happen to a Japanese Ship - you better watch it
but time has change - saw 20k vessel loading with 100mt short and there is no feeling at all
Vessel weight
-------------------------------- = VEF
B/L weight established at shore
If VEF > 1, vsl is over-calibrated,
<1 , under calibrated
There is some elaborate and systematic calculation involved in establishing VEF, e.f last five voyage & some statistical method in rejecting outllayer
VEF has been used quite extensively in petroleum shipment but to applied to palm oil pose some problem, bec
1) Petroleum - normally involved the whole vessel involving all tanks and single product. In palm oil normally problem arise over cerain parcel occupied some of the tanks
2) It is still not an industrial practice for palm oil to demand for VEF - resistance from ship's Master/Owner in releasing the VEF. (Some vessel claimed there is no VEF which is rubbish - the raw data are there, just provide the last 5 cargo as per vessel Cargo Log Book and you can calculate the VEF)
When using VEF in applying Palm Oil shipment consider the following palm oil factor
1) loading mode - if loading at Indonesia off-port, likely is it by barge-to-ship transfer. The barge is non-heated and there will be cargo ROB (remained on board). Some ROB are intentionally created as obvious
2) Heated cargo like PFAD/Stearin - view the loading temperature. if it is too low, then check whether there is stripping of shore tank
3) Generally rule of thumb, normally Japanese/Korean Vessel has good vef, old vsl and/or Russian ship, god help you
First recheck all shore calculation and pipeline properly cleared.
Then look at the vessel experience
Check with Vsl Master the last 5 loading to established the usual ship-shore difference - generally known as Vessel Experience Factor
rule of thumb
a) Japanese vessl are generally calibrated and give good shore-ship figure
b) Old vessel like Russian has no calibration figure
c) preferably vef based on whole vsl
Take the 0.5% with a pinch of salt - for 6000mt vsl 0.5% is 30mt - if it happen to a Japanese Ship - you better watch it
but time has change - saw 20k vessel loading with 100mt short and there is no feeling at all
Ship-Shore difference
Try to avoid ship shore difference before loading
1) Established the problematic load port. If you have a choice of Belawan/Dumai Port - Dumai is the champion
2) Shipper - you should have the rating of the reputable of shipper
3) Installation - the infamous snake hole
I ever loss 100mt of oil loading at the Snake hole at the infamous port and 3-bullets shipper. God is on my side - vessel reached Rotterdam and master accidentally awing the wrong valve and contaminate the whole cargo. We claimed total loss and I get off the hooks
If by no choice you Chief/Cheap Trader decide to take the cargo from the triple jeopardy port because it is usd2/mt cheaper, well, pray and do the following :-
a) Get a good surveyor to attend (Good has nothing with the company name - its the person)
b) Load not to be the last shipper to laod - usually they steal from the pipeline quantity and the last shipper suffer
c) Do not sweep empty the tank
d) It may not be legal but we ever refuse to issue BL to the shipper until they revise the shore figure
1) Established the problematic load port. If you have a choice of Belawan/Dumai Port - Dumai is the champion
2) Shipper - you should have the rating of the reputable of shipper
3) Installation - the infamous snake hole
I ever loss 100mt of oil loading at the Snake hole at the infamous port and 3-bullets shipper. God is on my side - vessel reached Rotterdam and master accidentally awing the wrong valve and contaminate the whole cargo. We claimed total loss and I get off the hooks
If by no choice you Chief/Cheap Trader decide to take the cargo from the triple jeopardy port because it is usd2/mt cheaper, well, pray and do the following :-
a) Get a good surveyor to attend (Good has nothing with the company name - its the person)
b) Load not to be the last shipper to laod - usually they steal from the pipeline quantity and the last shipper suffer
c) Do not sweep empty the tank
d) It may not be legal but we ever refuse to issue BL to the shipper until they revise the shore figure
Monday, May 17, 2010
Ship quantity
The biggest problem of ship's figure is its conflicting role with Bill of Lading
Traditionally
a) BL - acknowledge receipt of goods by vessel LOADED into the ship's Hold/Tanks. BL figure has legal implication as it implied transfer of custodian of ownership form exporter to carrier. Normally it refer to quantity ALREADY loaded into the ship's hold or tanks
b) Ship figure in bulk is also traditionally by trade practice used as a guide and shore quantity is used as BL. Reason
a. Vsl afloat do not give accurate sounding/ullaging due to the swaying and movement of the ship
b. Vsl can be down by stern/head and listing affecting the accuracy of sounding, even tough some vls do provide correction
c. Some old vessel is not even calibrated
Unlike packages that are countable, weight or volume generated by sounding or ullaging are never absolute. (see previous article). Even the best calibrated ship's tank with sea as calm as solid ground, there will be a difference. (Alternatively oil transfer from one calibrated shore tank to another shore tank will bound to be different even assuming no skin loss)
When there is difference the trade practice is that the tolerance should be less than 0.5%. Traditionally, for trade practice, Ship's Owner liability is ship's figure from loadport to discharge Port. To bulk oil carrier, BL quantity, being established at shore, is not their responsibility. The often Disclaimer clause "Quantity & Quality unknown to Master"
This gentlemen approach has been challenge recently due to
- bigger vessel - the 0.5% can come to 100mt
- the fast pace of Indonesian CPO expansion resulted in many river ports with dubious loading practice,
- Loading involved transfer of non-heated barge to ship
ie there is indeed actual loss of few hundred tons of oils and buyers started to lay claims. Some insurance start to refute the claims stated Owner by issuing BL knowing very well vessel figure is different. Others resort to arrest the vessel forcing the owner to pay at least some of the losses (esp in Pakistan and India, now China has started to learn the trade)
When ship's owner refuse to issue BL based on shore figure and insisted on ship's figure, there is several implication
a) Shipper will insist shore as BL as per Trading terms - PORAM OR FOSDA
b) Many country take BL as official for duty & tax other. If there is discrepancy it may problem to the local authority.
c) Trader will suffer as they pay shipper based on shore and at disport faced claims from buyer for short loading
Traditionally
a) BL - acknowledge receipt of goods by vessel LOADED into the ship's Hold/Tanks. BL figure has legal implication as it implied transfer of custodian of ownership form exporter to carrier. Normally it refer to quantity ALREADY loaded into the ship's hold or tanks
b) Ship figure in bulk is also traditionally by trade practice used as a guide and shore quantity is used as BL. Reason
a. Vsl afloat do not give accurate sounding/ullaging due to the swaying and movement of the ship
b. Vsl can be down by stern/head and listing affecting the accuracy of sounding, even tough some vls do provide correction
c. Some old vessel is not even calibrated
Unlike packages that are countable, weight or volume generated by sounding or ullaging are never absolute. (see previous article). Even the best calibrated ship's tank with sea as calm as solid ground, there will be a difference. (Alternatively oil transfer from one calibrated shore tank to another shore tank will bound to be different even assuming no skin loss)
When there is difference the trade practice is that the tolerance should be less than 0.5%. Traditionally, for trade practice, Ship's Owner liability is ship's figure from loadport to discharge Port. To bulk oil carrier, BL quantity, being established at shore, is not their responsibility. The often Disclaimer clause "Quantity & Quality unknown to Master"
This gentlemen approach has been challenge recently due to
- bigger vessel - the 0.5% can come to 100mt
- the fast pace of Indonesian CPO expansion resulted in many river ports with dubious loading practice,
- Loading involved transfer of non-heated barge to ship
ie there is indeed actual loss of few hundred tons of oils and buyers started to lay claims. Some insurance start to refute the claims stated Owner by issuing BL knowing very well vessel figure is different. Others resort to arrest the vessel forcing the owner to pay at least some of the losses (esp in Pakistan and India, now China has started to learn the trade)
When ship's owner refuse to issue BL based on shore figure and insisted on ship's figure, there is several implication
a) Shipper will insist shore as BL as per Trading terms - PORAM OR FOSDA
b) Many country take BL as official for duty & tax other. If there is discrepancy it may problem to the local authority.
c) Trader will suffer as they pay shipper based on shore and at disport faced claims from buyer for short loading
Sunday, May 16, 2010
Shore quantity
Sounding - the height of the oil level
Ullaging - the height of the space above the oil level
Bulk Oil and liquid (except petroleum & solvent) are measured by simple formula
Volume in M3 or Kilo-Liters (KL) @ obsd temp x density @ the same temp = metric tons
a) Volume in vertical uniform storage tank
The calibration consists of 2 parts
- the bottom cone of the tank - irregular and measure by direct pouring of water or other liquid of known density - terms as dead-stock
- the uniform vertical cylindrical section using the formula Volume (V)
V = 4/3 (pi)x H x R3 where R is the radius & H is the height of oil
Volume of oil at any point = dead-stock + volume @ H height
Sound logical - what seemed to be the problem then?
1. the measurement of dead-stock - if there is an inherent error as it is done by physical poring of known volume of liquid (laborious and subject to human error). It is why never encourage emptying of the tank
Latest quickie method using optical method cast more doubts to the accuracy of the method
2. The formula assuming a perfect cylindrical shell of a perfect circle, in actual case it is not and complicated by the thickness of the steel
3. Some standard like Chinese take the expansion of steel into consideration. Personally i think it is pure academic
The most important factor is still commercial
The official custodian of the oil is normally the storage terminal. Oil is delivered to the terminal by truck or tankers and the weight is registered by the weighbridge weighing. - this is called book figure
During export, the weight is ascertaining by ullaging in the presence of surveyor or independent party - obviously installation do not wish to see the ullaging less than the book-figure, even by 1mt out of 2000mt - some fuzzy exporter will complaint.
The installation didn't cheat actually - as the calibration is often done by independent calibrator - they are being called back for recalibration.
Due to competition - the recalibration is at calibrator due to their "mistakes". A smart calibrator is calibrate the physical slightly above the tolerance, say 0.1% - hardly noticeable by any standard. However for a medium refinery @ 1000mt capacity, the gain is 1mt per day or 300-400mt for yr and @ usd500per mt = usd150,000. This is the "operation yield" as compare to production yield (Imagine if they do cheat actually, a medium size terminal that i know reportedly gain 2000mt per year in book figure...... not me company of course)
Interesting question, if the shipper one day turn importer?? will they suffer "operation loss" - possible but avoidable.
How? covered the dead-stock with some oils before receiving the oil - this is the place the smart calibrator likely to give the bonus to the installation
Ullaging - the height of the space above the oil level
Bulk Oil and liquid (except petroleum & solvent) are measured by simple formula
Volume in M3 or Kilo-Liters (KL) @ obsd temp x density @ the same temp = metric tons
a) Volume in vertical uniform storage tank
The calibration consists of 2 parts
- the bottom cone of the tank - irregular and measure by direct pouring of water or other liquid of known density - terms as dead-stock
- the uniform vertical cylindrical section using the formula Volume (V)
V = 4/3 (pi)x H x R3 where R is the radius & H is the height of oil
Volume of oil at any point = dead-stock + volume @ H height
Sound logical - what seemed to be the problem then?
1. the measurement of dead-stock - if there is an inherent error as it is done by physical poring of known volume of liquid (laborious and subject to human error). It is why never encourage emptying of the tank
Latest quickie method using optical method cast more doubts to the accuracy of the method
2. The formula assuming a perfect cylindrical shell of a perfect circle, in actual case it is not and complicated by the thickness of the steel
3. Some standard like Chinese take the expansion of steel into consideration. Personally i think it is pure academic
The most important factor is still commercial
The official custodian of the oil is normally the storage terminal. Oil is delivered to the terminal by truck or tankers and the weight is registered by the weighbridge weighing. - this is called book figure
During export, the weight is ascertaining by ullaging in the presence of surveyor or independent party - obviously installation do not wish to see the ullaging less than the book-figure, even by 1mt out of 2000mt - some fuzzy exporter will complaint.
The installation didn't cheat actually - as the calibration is often done by independent calibrator - they are being called back for recalibration.
Due to competition - the recalibration is at calibrator due to their "mistakes". A smart calibrator is calibrate the physical slightly above the tolerance, say 0.1% - hardly noticeable by any standard. However for a medium refinery @ 1000mt capacity, the gain is 1mt per day or 300-400mt for yr and @ usd500per mt = usd150,000. This is the "operation yield" as compare to production yield (Imagine if they do cheat actually, a medium size terminal that i know reportedly gain 2000mt per year in book figure...... not me company of course)
Interesting question, if the shipper one day turn importer?? will they suffer "operation loss" - possible but avoidable.
How? covered the dead-stock with some oils before receiving the oil - this is the place the smart calibrator likely to give the bonus to the installation
Sampling
Surveying is tough but as Calvin dad always said, it built character
learn the very basic of weight measurement (ullaging) and samppling
What at difference between University Text and Real World
1) Sampling
a) University - representative sample - what does it means
b) AOCS method (American Oil Chemists' Society)
Draw bottom sample at ascertain sludge; there after inch by inch until sample is free from sludge, then foot by foot until the top
Composite these 60-100 samples into one composite
well for a 60ft tank, we have enough samples to fill a small truck and may take a whole. India (STC) and Pakistani (GCP/TCP) insisted on it and all surveyors certify with their eyes closed that "that the sampling is done accordance to AOCS official methods". This method is drafted about 100yrs ago and nobody bother to dispute it; simply nobody followed it
3) Practical approach
Porim (old MPOB) formulate 3-level sampling - Top/Middle/Bottom
Top - 1 foot from Top, Bottom - 1 foot from Bottom, Middle - middle of Top & Bottom
the above work well with Refined product
As for Crude, practical approach is do not empty out the tank and extend 3 level sampling to 5-level - middle of Top and Middle of Bottom - think it is good enough
If u do have to sweep, prepare to receive sludge (as common to seedoil from South Ameirca) and losses
You always lost oil when emptying out the tank. Why?..... to continue
learn the very basic of weight measurement (ullaging) and samppling
What at difference between University Text and Real World
1) Sampling
a) University - representative sample - what does it means
b) AOCS method (American Oil Chemists' Society)
Draw bottom sample at ascertain sludge; there after inch by inch until sample is free from sludge, then foot by foot until the top
Composite these 60-100 samples into one composite
well for a 60ft tank, we have enough samples to fill a small truck and may take a whole. India (STC) and Pakistani (GCP/TCP) insisted on it and all surveyors certify with their eyes closed that "that the sampling is done accordance to AOCS official methods". This method is drafted about 100yrs ago and nobody bother to dispute it; simply nobody followed it
3) Practical approach
Porim (old MPOB) formulate 3-level sampling - Top/Middle/Bottom
Top - 1 foot from Top, Bottom - 1 foot from Bottom, Middle - middle of Top & Bottom
the above work well with Refined product
As for Crude, practical approach is do not empty out the tank and extend 3 level sampling to 5-level - middle of Top and Middle of Bottom - think it is good enough
If u do have to sweep, prepare to receive sludge (as common to seedoil from South Ameirca) and losses
You always lost oil when emptying out the tank. Why?..... to continue
Saturday, May 15, 2010
The begining
Graduate with Class II Upper Honors in Chemistry - hard work, all study and no play.
A bit regret. Dont consider myself very smart and need hard work to subtantiate
Final Year exam over in February but 6 month before that start looking for job. A friend went for Europe tour saying that it is the only time we have time to travel. Second Sister agreed but only moral support. No money
Government under Hussein Onn and practically no development. All of us gather at library waiting for employment, Slowly the number decreasing and i am one of the lucky one who get job before the graduation
Started work as Chemist-Surveyor with Caleb Brett - turn out to be surveyor. 20 months experience but good training ground. Suddenly land-duck like me got to go on board the ship - and i cant swim - never fear until some 20yrs later i was almost drown in Pontianak River when my speed boat over turn. No jacket and i miraculously survive
A bit regret. Dont consider myself very smart and need hard work to subtantiate
Final Year exam over in February but 6 month before that start looking for job. A friend went for Europe tour saying that it is the only time we have time to travel. Second Sister agreed but only moral support. No money
Government under Hussein Onn and practically no development. All of us gather at library waiting for employment, Slowly the number decreasing and i am one of the lucky one who get job before the graduation
Started work as Chemist-Surveyor with Caleb Brett - turn out to be surveyor. 20 months experience but good training ground. Suddenly land-duck like me got to go on board the ship - and i cant swim - never fear until some 20yrs later i was almost drown in Pontianak River when my speed boat over turn. No jacket and i miraculously survive
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