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Survey: Singapore physical bunker players not as widely hit, despite fall in crude oil prices

Manifold Times checks with industry players on how the recent sharp fall in crude oil prices have affected each node along the marine fuels supply chain in Singapore.

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Singapore bunkering operation

The sharp fall in prices of crude oil from Friday till Monday – which resulted in a significant drop in bunker prices at Singapore port – might not be leaving an indelible mark on most physical players operating within the republic’s physical bunker sphere, learned Manifold Times.

The Singapore bunker publication checked with players along each node of the marine fuels supply chain of how the earlier fall in oil prices affected their respective sector.

In short, fuel buyers for shipping firms welcomed the development due to lower operating costs while bunker traders said the cheaper oil now meant customers’ credit lines are now being reduced allowing for increased utilisation.

Bunker suppliers, thought by others to be most exposed to the historical fall in crude oil prices, offered a mixed response with most saying the risk has been somewhat mitigated.

Non-physical bunker players

One Bunker Manager noted the fall in bunker prices may not be producing much of an adverse effect for some shipowners.

“There is not much of a difference because we are mainly on term contracts. The drop has given us the opportunity to go out to look for more term contracts at better prices, and possibly over a longer-term period. So, for us it is just a normal thing as we do not see this as a huge drive to buy more or less bunkers,” he said.

Shipowners who purchase fuel from the spot market will most likely benefit from the fall in bunker prices, but under what circumstances, he notes.

“The question is if you buy now, how much more will you be able to buy as there will be other factors and constraints which may limit the amount of physical hedge available for each vessel. The other constraint may include the availability, port stay time, tank size, draft, cargo volume, credit, etc,” he added.

An international Bunker Trader believed the price drop to be a positive development for the marine fuels trading sector.

“It is a positive thing as the credit lines can now be utilised to purchase more bunkers as less cash is required for transactions,” he explained.

“The operating costs for shipowners will be lower; our customers isolated from that should have less costs for ships to run.

“The bunker suppliers who have neither hedged their inventory nor done risk management will be in trouble. But if the position was balanced then it should be no problem.”

A back-to-back trader focusing on marine fuel purchases for a foreign market says unprepared players in the physical bunker market could be taking a “very hard fall” during this period.

“It might be a problem for unprepared players with storage because some don’t really hedge all the cargo and if they can’t sell in time they will be holding onto high cargo prices.

“Prices are down almost USD 150 pmt on the prompt and futures markets, so assuming you have paid up USD 460 last month and now you can only sell USD 300 you are going to bleed. Players who bought cargo last week before the plunge in prices will be kicking themselves.”

An oil major source believes this period could see certain bunker suppliers exiting the market.

“A lot depends on their position last week, but in general I feel we might see another batch of companies falling,” said the source.

“Flat price punters, suppliers long on trades or overcommitted on expensive purchases, or operating barges with high cost will suffer.

“Before the sharp decline, we noticed certain bunkering firms have been extremely uncompetitive possibility due to them waiting out the ‘low’ flat price as their bunker fleet sits idle.

“The premiums actually edged up slightly during the last couple of trading sessions but the upside has been limited due to VLSFO and LSMGO sentiments remaining extremely bearish.”

Singapore physical bunker suppliers

Interestingly, physical players at the republic offered a mixed view of how their sector will be affected by the price drop.

“Most bunker suppliers will be affected by the development; we have fixed cost such as wages and assets including vessels to cover under P&L,” said a management level executive of a local bunker supplier.

“The price drop will cause us to turnaround more as we will need more volume to cover the cost. However, at this time due to the coronavirus demand has also slowed down so this will be a challenge.

“Moving forward, we will try to engage more customers and form more alliances with other physical suppliers to work together in order to maintain cost and volume to provide better packages for customers so everybody can move forward together.”

A Singapore bunker supplier whose business predominantly focuses on providing barging services for oil majors says his operations were least affected by the historical fall in oil prices.

“Fortunately, we were not affected at all because in our business model we operate barges and conduct bunker deliveries on behalf of oil majors so we do not have exposure to oil price fluctuations,” said the owner.

“There is no impact [on our company] and therefore we are doing nothing particularly about it.”

Another bunker supplier which operates physical storage was keen to dispel market sentiments that all such physical players will encounter huge losses due to the fall in crude oil prices.

“In the past, whenever there are big swings in prices we did find one or two players collapsing due to being caught holding the wrong position. However, these days the bunkering sector is more conservative when it comes to these type of situations,” explained the Director.

“Most people think we will be conducting long term trades in this kind of market but that is not true due to availability of product, in fact nowadays there is less speculation and many firms face much lesser risk of being adversely affected by big swings in prices.

“Besides, the cheaper oil prices bring about less financing cost for the same amount of credit. We still collect the same amount of money in every month from what we charter out and combined with most of trades being conducted back-to-back, we do not expect margins to be significantly different.”

A management executive at another bunker supply firm, meanwhile, highlights physical players which locked in cargoes in the previous two weeks may experience losses for the short term.

“However, these physical bunker players in totality already made loads of money during November and December 2019; overall, the margins may not be as great as before but if this continues they will start to lose money,” he said.

“But then again, cargo prices have also caught up substantially. Hence, losses might be not as great as suggested by others.”

 

Photo credit: Manifold Times
Published: 12 March, 2020

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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