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IMO2020 – How long will majors and refiners be able to bear the credit heat?

‘Huge opportunity’ for oil majors and refiners to return to being a force in retail bunkering, suggests Infospectrum.
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Shipping and commodity sector due diligence, credit reporting and risk management consultancy firm Infospectrum in September published an article originally titled ‘IMO2020 – How long will majors and refiners be able to bear the credit heat?’ The article has been shared with Manifold Times:

When many of us started our careers in risk management, bunkering was comprised of oil majors with active retail bunkering arms, dealing with a relatively small number of well known owners and operators, with the remainder mopped up by the original independent bunker traders, who were prepared to leverage their knowledge and appetite for risk (plus hands-on risk managers) to make margins from this riskier "excess". Subsequent spin offs from this core have all sought to use greater access to information or relationships to emerge into an increasingly complex sector, with all the major independents dipping their toes into this market (to varying degrees of success), and numerous nimble (and occasionally fly-by-night) traders entering and leaving the market over the last 20 years; bunker buyers have welcomed this extra competition, and margins in bunkering have narrowed as a result – at times to almost unsustainable levels.

Market participants have reacted in different ways to these very limited returns, and occasionally higher risks, on offer. Oil majors have tended to concentrate on wholesale sales to large-scale and what they regard as lower-risk enterprises, reducing the "hands on" nature of their risk management accordingly (some even folding marine fuels into their trading arms, whose risk appetite is based around very different models and security).  Independents have, in turn, invested heavily in maximising their information and liquidity advantage, seeking to trade around the risk premium offered by lower-grade credit. As a result, the bunkering playing field has shifted; while oil majors and national oil companies continue to sell the highest volumes of bunkers, the retail market is now dominated by independent traders such as World Fuel Services Corp, the Bunker Holding group, Peninsula Petroleum Ltd and OceanConnect Marine.

The impact of IMO 2020

Multiple reports have suggested that the imposition of IMO2020 regulations may change this model, with oil majors (and, to a lesser extent, refiners) seeking to leverage their access to Very Low Sulphur Fuel Oil to recover market share in bunkering retail. ExxonMobil, Shell, Total and BP have all announced significant investments in increasing refining capacity of VLSFO/ULSFO, increasing exposure to physical supply in key locations such as ARA, Fujairah, US Gulf and Singapore, and some even patenting the make-up of the fuel itself, and expanding bunker sales teams. Independent refiners have also sought to market their product directly to retail buyers. While such investments have caused concern amongst existing market participants, we have seen limited evidence that this expansion is being matched with an increased appetite for credit risk. 

While oil majors and major independents have always used the marine fuel sector as a key factor of their fuel oil trading strategies (liner companies being particular beneficiaries of this strategy, despite their own risks), their perceived lack of appetite for risk in what is an increasingly complex and compliance-heavy sector is likely to be self-limiting. Will sufficient demand be generated by sufficiently transparent owners and operators? Indeed, some major refiners are already understood to be seeking assistance from traders in selling volumes that are not already allocated to key clients. 

What next?

This situation is reminiscent of moves by banks/financiers to move into the physical and derivative freight markets in the heady conditions of the early 2000s – fine in theory, but more difficult to execute in practice; having traders grinding their teeth about an onboarding process utterly unsuited to the shipping markets (in terms of demands and timescale), isn't good for business growth or employee/client retention.

At our Forum in London last week, we speculated on how long it would take majors to bump up against their internal appetite for risk in the marine sector, and market conditions returning to the current "norm" of independents holding significant retail market share. Feedback suggested it would take no more than one or two years. With prices expected to be higher, and risks more complex, recapturing any lost market share will depend on the financial resources and intelligence of the independents concerned (witness the recent departures of smaller and/or financially stretched participants from the Singapore bunkering market). Top-quality research, and the accurate pricing of risk, will be a key factor in reestablishing these norms (or, conversely, allowing the majors to grow their share in the market).

Source: Infospectrum
Published: 8 October, 2019
 

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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.
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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

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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.
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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.
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July 22, 2026

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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