Legal

SCMA: Quality issues are the future of bunker disputes

Disputing parties prefer to pursue arbitration in quality disputes rather than quantity disputes, says Executive Director.

Published

8 years ago

September 6, 2018

Admin

Implementation of the Technical Reference for bunker mass flow metering (TR 48) and the use of mass flow meters (MFM) for fuel oil bunkering operations at Singapore have significantly reduced bunker quantity claims, says the Executive Director of the Singapore Chamber of Maritime Arbitration (SCMA).

Dennis Chan told delegates at the Argus Media Singapore Bunker Fuel Seminar on Friday that parties generally do not bring their quantity disputes to arbitration.

“It is a known fact bunker disputes have been traditionally about quality and quantity,” says Chan.

“The introduction of mass flow meters and the emphasis in TR 48 operational practices has put in place a system that not only describes transfer practices but also provides industry transparency and efficiency.

“In many ways, it has effectively reduced the number of quantity claims associated with bunker delivery in Singapore”

Chan pointed out that parties have referred five bunker quality disputes to the SCMA for arbitration.

“Conversely, we think that Quality claims [at Singapore port] conversely would be much more apparent closer to 2020,” he forecasts.

“Quantifying quantity claims may be relatively straightforward but claims related to quality are very different and more complex.

“Such claims are also wider covering vessel engine damage, debunkering cost, towage chartering delays and also commercial claims.”

Moving forward, Chan noted it was important for stakeholders to maintain an up-to-date dispute resolution clause in bunker contracts to protect themselves.

“The key question is how are stakeholders positioned today to address potential disputes,” he says.

“It is not uncommon in the bunker industry to settle disputes amicably.”

“While this remains the best way to resolve disputes, contracts between buyers and sellers remain the single most important document governing their contractual obligations, and it is important to update and refresh your contracts to provide for the right forums to address such disputes, if it happens, in an efficient and cost-effective way.”

Chan highlights that both the Singapore Standard Code of Practice for Bunkering (SS 600) and TR48 already include a framework for the Singapore Bunker Claims (SBC) procedure as a quick and inexpensive avenue for dispute resolutions. The SBC Terms are administered by the SCMA and provide for a monetary cap on the time and cost of the arbitration process.

Here is where SCMA arbitration may function as a cost-effective and efficient way to handle disputes.

“We recommend that stakeholders incorporate the SBC Terms, which is the arbitration process recommended by the Maritime and Port Authority of Singapore as reflected in the SS 600 and TR48, into their bunker contracts, especially if you are taking bunker deliveries in Singapore,” he suggests.

“Parties may also, in an appropriate dispute, request that SCMA convert an SBC arbitration into a full-scale arbitration under the SCMA Arbitration Rules to accommodate larger or more complex bunker claims.”

Photo credit: Nadiah Zulkifle, IBIA (Asia)
Published: 6 September, 2018

Winding up

Singapore: Notice of intended dividend issued for Xihe Holdings’ subsidiaries

Creditors will need to produce proofs of debt to liquidators of Da Xin Tankers and Nan Chiau Maritime by 5 August, according to Government Gazette notice.

Published

12 hours ago

July 23, 2026

Admin

Two notices to declare the intended dividend of Xihe Holdings’ subsidiaries to their creditors have been posted on the Government Gazette on Wednesday (22 July).

The subsidiaries are Da Xin Tankers Pte Ltd and Nan Chiau Maritime Pte Ltd.

The following are the details of the notices of intended dividend:

Name of Company : Da Xin Tankers (Pte) Ltd (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 198400895W
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Name of Company : Nan Chiau Maritime (Pte.) Ltd. (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No.: 200814296Z
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Photo credit: steve pb from Pixabay
Published: 23 July, 2026

Winding up

Singapore: High Court to hear Norvic Shipping Asia winding up application on 31 July

Application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to Government Gazette notice.

Published

2 days ago

July 22, 2026

Admin

An application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to a Tuesday (21 July) notice on the Government Gazette.

It noted the winding up application is directed to be heard before the Judge sitting in the General Division of the High Court at 10am on 31 July.

Any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose.

A copy of the winding up application will be furnished to any creditor or contributory of the company requiring the copy of the winding up application by the solicitors of the applicant’s, Oon & Bazul LLC, on payment of the regulated charge for the same.

The Applicant’s address is Hiridostraat 5, Gebouw Prismatrium, 1101CW Amsterdam, The Netherlands.

The Applicant’s solicitors are Oon & Bazul LLC of 103 Penang Rd, #04-04/05/06 Singapore 238467.

Queries on the winding up application may be directed to the following email addresses: [email protected] and [email protected].

Photo credit: Manifold Times
Published: 22 July, 2026

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

3 days ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026