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Argus Media Analysis: Bunker premiums surge at Singapore market

Delivered premiums in Singapore or China not expected to fall back to more typical levels anytime soon.

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Global energy and commodity price reporting agency Argus Media in on Tuesday (9 July) provided a marine fuels industry related update:

A shortage of fuel oil cargoes and tight barging schedules are pushing up delivered bunker premiums in the port of Singapore in the run-up to the IMO 2020 sulphur cap.

The delivered premium to the 380cst high-sulphur fuel oil (HSFO) cargo price in Singapore rose to $26.50/t yesterday, the highest since November 2018. The premium averaged $8.50/t during the first half of 2019, according to Argus data.

Strong summer demand for fuel oil in the Middle East has restricted inflows to Singapore, with fewer arbitrage cargoes arriving during the summer months. The tightness has been compounded by efforts by refiners globally to limit fuel oil production ahead of the IMO's tougher cap on sulphur content in marine fuels, which takes effect on 1 January 2020.

Fuel oil inventories in Singapore declined by 14pc from a week earlier to fall below 20mn bl last week, with an increasing number of market participants giving up storage leases in anticipation of dwindling demand for HSFO by the end of the year. This has pushed the backwardation in the fuel oil market to a record $20.50/t yesterday.

Barging schedules in Singapore are also tightening. Tensions in the Middle East have diverted some demand from Fujairah to Singapore, just as a few suppliers have had their bunker craft operator licences suspended by Singapore's Maritime and Port Authority (MPA) after tampering with mass-flow meters (MFM). Availability has also been curbed as some barges are taken out of the market for servicing and recalibration of their MFMs.

Barge availability is also being squeezed by preparations for the IMO 2020 regulations, which will cut the maximum sulphur content to 0.5pc from 3.5pc now. Some barges are being cleaned so they can deliver low-sulphur fuel oil (LSFO) and marine gasoil (MGO). Market participants are anticipating a surge in demand for gasoil because of concerns from some buyers about possible instability in LSFO specifications. Marine gasoil is widely seen as the best substitute to ensure comply with the 0.5pc sulphur cap, albeit at a higher price.

The strong rise in Singapore premiums has led to an increasingly wide price differential with other bunker ports. The availability of abundant and heavily discounted fuel in the Mideast Gulf has sent Fujairah bunkers to discounts of nearly $50/t relative to Singapore, according to Argus data. Demand in Fujairah has weakened as buyers have been hit by higher insurance premiums, including war risk clauses, because of the tensions in Mideast Gulf. This has left shipowners increasingly hesitant to bunker in Fujairah, despite the much lower prices there.

In Asia-Pacific, delivered bunker prices in Hong Kong have turned from a premium to a discount to Singapore prices over the past week. Argus yesterday assessed 380cst high-sulphur bunkers in Hong Kong at a $17/t discount to Singapore, down from average premiums of around $5-15/t a month earlier. Demand in Hong Kong, Shanghai and the Yangtze river is weak to average, market participants said, in line with the global picture.

Delivered premiums in Singapore or China are not expected to fall back to more typical levels anytime soon, as some suppliers keep their cargoes in tanks to take advantage of these higher premiums.

Source: Argus Media
Published: 10 July, 2019

 

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Business

IBT Bunkering & Trading appoints Kevin Döhmen to lead Singapore expansion

Döhmen will lead the new Singapore office, with responsibility for managing and developing the operation and strengthening relationships with customers and partners.

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IBT Bunkering & Trading appoints Kevin Döhmen to lead Singapore expansion

Hamburg-based marine fuels firm IBT Bunkering & Trading on Wednesday (12 August) said it has appointed Kevin Döhmen as Executive Vice President to lead the company’s new Singapore office. 

Manifold Times previously reported the company announcing that it is opening its doors in Singapore and will be running a trading desk in the city-state after trading bunkers out of Hamburg since 1976.

The company said Kevin Döhmen will lead the new Singapore office, with theresponsibility for managing and developing the operation and strengthening relationships with customers and partners.

IBT said the Singapore office represents an important first step in strengthening its presence in Asia.

“At the same time, we are actively exploring further opportunities to expand our activities and establish new partnerships in this key maritime hub,” the company said. 

Döhmen said: “Singapore is the heartbeat of global bunkering. Bringing IBT’s Hamburg roots — 50 years of them — onto the ground in this hub is a real privilege, and I couldn’t be more ready for it.”

IBT said it will maintain the service approach established through its Hamburg operations while building its activities in Singapore.

The company described the move as bringing together its Hamburg roots and Singapore presence through a global bunker network. 

Related: German firm IBT Bunkering & Trading establishes Singapore presence, adds second trading desk

 

Photo credit: IBT Bunkering & Trading
Published: 13 August, 2026

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Bunker Alerts

Low flashpoint found in Indonesia bunker fuels, alerts Maritec-Naias

Firm tested eight bunker samples representing LSMDO and B40 fuel grade from vessels that took fuel oil /bunkered in Indonesia ports, which indicated flashpoints as low as 39.5°C.

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RESIZED Shaah Shahidh on Unsplash

Bunker fuel testing and marine surveying business Maritec-Naias on Wednesday (12 August) issued an alert regarding bunker samples from vessels that took fuel oil/bunkered in Indonesia showing flashpoints as low as 39.5°C:

During the period of 21 July to 04 August 2026, Maritec-Naias tested eight bunker samples representing Low Sulfur Marine Distillate Oil (LSMDO) and B40 fuel grade from vessels that took fuel oil /bunkered in Indonesia ports, which indicated Flashpoints as low as 39.5°C.

All eight fuel samples tested were sourced from a single supplier.

Regulatory Implications:

Based on the results of the eight samples tested, the fuels do not comply with the minimum flashpoint requirement of 60 °C set by SOLAS and ISO 8217.

As per SOLAS requirements, the minimum flashpoint of any fuel carried in the tanks of a ship should be not less than 60 °C (with exception of fuel for lifeboats, which can be grade DMX with a flash point min of 43 °C).

ISO 4259 interpretation for tested flashpoint temperature is not taken into consideration here as the safety of onboard crew and vessel is of higher precedence.

Since 01 May 2024, it has been a MARPOL Annex VI requirement that the Bunker Delivery Note (BDN) includes either the actual flashpoint of a fuel as supplied or a declaration that its flashpoint has been determined as being at or above 70°C.

From 1 January 2026, SOLAS amendments clarified that the flashpoint requirement applies to fuels, which were specifically intended to have a flashpoint not less than 60°C as required under SOLAS II‑2/2.1.1 These amendments now align with MARPOL by requiring flashpoint details to be recorded on the BDN. Additionally, prior to bunkering, suppliers must provide the ship’s representative with a signed declaration confirming that the fuel meets the SOLAS flashpoint standard.

MARITEC-NAIAS RECOMMENDATIONS

When ordering fuels from Indonesia it is advised to insist on getting the actual flash point values from the supplier. If your vessel has bunkered a low flashpoint fuel it is prudent to observe/implement the precautions below:

  • Flame screens on tank vents should be maintained in good condition and there should be no sources of ignition in the vicinity of the vents. This will assist in safe natural ventilation of volatile components in the fuel.
  • No Smoking, no naked flame and no hot work must be allowed at any areas near to tank air vents.
  • Send additional tank(s) samples upon arrival in port to check the fuel properties and flash point results especially if there has been co-mingling of fuels in bunker tanks
  • If the vessel is out at sea, it may be possible to obtain dispensation from your Flag State Administration up to the next arrival port.
  • Put the supplier on notice promptly and notify your P&I club.

 

Photo credit: Shaah Shahidh on Unsplash
Published: 13 August, 2026

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Methanol

China: Xiamen issues safety guidelines for methanol bunkering operations

New guidelines establish safety requirements across the full methanol bunkering process, supporting the expansion of green marine fuel supplies at Xiamen Port.

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Xiamen, China

Xiamen Free Trade Zone on Monday (10 August) said its Administrative Committee recently jointly issued the Safety Guidelines for Marine Methanol Fuel Bunkering in Xiamen Waters with Xiamen Port Authority and Xiamen Maritime Safety Administration, establishing a framework for methanol bunkering operations in the port.

The guidelines are the first safety operating standard in Fujian province specifically covering marine methanol fuel bunkering. They apply to methanol bunkering operations conducted by bunker vessels in Xiamen waters and set out safety requirements covering the entire operation, from preparation through completion.

The guidelines specify requirements for bunkering companies, equipment and materials used on bunker vessels, hose inspection intervals, personnel certification and personal protective equipment.

They also require operators to conduct dedicated risk assessments and prepare emergency response plans before operations begin. During bunkering, operators must maintain continuous monitoring and comply with specified weather restrictions. After completion, pipelines must undergo procedures including purging and inerting.

Xiamen Port has previously carried out ship-to-ship bunkering of biofuels and LNG. The new guidelines provide a regulatory framework and operational basis for methanol bunkering and are intended to support the safe and orderly conduct of such operations.

The move is also expected to help Xiamen Port expand its market and bunkering capacity for green marine fuels. 

 

Photo credit: Woo Winter on Unsplash
Published: 13 August, 2026

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