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Rajah & Tann: Vessel arrests in Singapore continue to be on the up, despite COVID-19

The arrest of vessels at the world’s largest bunkering port continues to be an effective method of obtaining recovery on maritime-related claims, says Partner Max Lim.
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Max Lim, a Partner of legal firm Rajah & Tann Singapore LLP, on Wednesday (20 August) provided marine fuel industry readers of Manifold Times a briefing on why the arrest of vessels at the world’s largest bunkering port continues to be an effective method of obtaining recovery on maritime-related claims.

SINGAPORE.

It is business as usual as far as vessel arrests in Singapore are concerned.

Notwithstanding the COVID-19 pandemic, 2020 has not seen a slowdown in vessel arrests, with numbers comparable to years past.

In 2020, there have been 25 vessel arrests in Singapore to date, or an average of just over 3 arrests per month so far. This figure is comparable to last year’s numbers, and bears testament to Singapore remaining the jurisdiction of choice for vessel arrest.

As at the time of writing, there are 7 vessels presently still under arrest in Singapore.

Further, in 2020 alone, as of date, an impressive total of about 194 court actions (or writs) have been filed against vessels and vessel owners in the Singapore court.

Singapore is one of the few jurisdictions in the world which allow maritime claimants to file a protective claim in Court, even before the vessel calls into Singapore. It is “protective” because upon filing, the claim is lodged as against the owner as of that date, and protects against any subsequent change in ownership.  That protective claim may then serve as the basis for arresting the vessel when she comes, notwithstanding that ownership may have changed in the interim.

Other key reasons for Singapore being a jurisdiction of choice for vessel arrests, apart from geography and being a popular bunkering hub, include the efficient and reliable system and because there is no requirement for counter-security or power of attorney.

So far in 2020, 2 vessels have been sold by the Singapore Court.  S&P brokers will also be keen to know that there are currently a further 5 vessels up for sale.

SG vessel arrest numbers

Fig.  Singapore arrests – YTD numbers at a glance

A quick word on COVID-19.  The Singapore Court was quick to implement Zoom hearings for urgent applications, including vessel arrest and release.  Anecdotally, this actually proved to be more efficient than the traditional physical hearing. No doubt, the implementation of Zoom hearings has been instrumental in ensuring that Singapore remains the jurisdiction of choice for arrests.

The parties making the arrests in Singapore primarily tend to include banks seeking to enforce their mortgages. At least one of the arrests in 2020 was a bank enforcement action, taken out by a Swiss-headquartered bank.

Bunker players are also active in vessel arrests here – no surprise given Singapore’s status as a bunkering hub.  For bunker players, swift and decisive action to arrest is necessary, especially before the shipowner takes steps towards restructuring which may impede enforcement.

Parties with cargo-related or charter party-related claims also look to arrest in Singapore to obtain security for their arbitration (whether taking place in Singapore, London or elsewhere).

The spate of commodities-related defaults in 2020 (both here and elsewhere) has also contributed to the arrest numbers in Singapore, but perhaps not to the extent one may have expected.  One such case that springs to mind would be the Hontop-related arrest in (“Miracle Hope”) that was reported in the international press.

Trade financiers seeking to arrest the carrying ship to enforce their security may do so on the basis of original, bona fide bills of lading. Part of the reason why there has not been that many vessel arrests relating to the collapse of the commodity players could be because of the apparent use of forged bills of lading as has been widely reported, or duplicates. Trade financiers who find themselves in such a position would have to seek alternate means of recovery.

If the year-to-date numbers are anything to go by, the arrest of vessels in Singapore continues to prove to be an effective method of obtaining recovery on maritime-related claims.

 

Written by: Max Lim, Partner, Rajah & Tann Singapore LLP © 2020
Photo credit: Manifold Times
Published: 20 August, 2020

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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.

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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.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

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July 21, 2026

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RESIZED Drew Beamer

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

  • That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

  • that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
  • that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
  • that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd. 

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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July 21, 2026

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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