Business

Contactless bunkering operations at Singapore port ‘raises questions’ on remedies in event of breach

Senior Associate at Clyde & Co offers guidance to protect shipowners and bunker tanker operators in the event opposing counterparty breaches Covid-19 protocols, resulting in Covid-19 transmission.

Published

5 years ago

July 21, 2021

Admin

The following advice on legal responsibility during contactless bunkering operations at Singapore port amidst the Covid-19 pandemic has been written by Paul Collier, Senior Associate at global law firm Clyde & Co; the write-up was made possible through an arrangement led by the Singapore Chamber of Maritime Arbitration (SCMA):

The risk of COVID-19 spreading during bunkering operations remains a significant concern for vessel operators, bunker suppliers and authorities, particularly where vessels have previously called at ports with high infection rates.

In addition to the health impact on crew and shore staff, the transmission of COVID-19 during bunkering operations can also cause significant financial impact. If cases of COVID-19 are identified, crew are likely to be ordered to quarantine or self-isolate, and vessels and bunker barges prevented from performing their planned future employment. Bunker suppliers are concerned of the risk of repetition of the circumstances of the “NewOcean 6”, where several crew members tested positive for COVID-19 and the bunker tanker was forced to cease operations and quarantine.

Generally, standard bunker terms and conditions do not include express terms dealing with the risk of COVID-19 transmission. However, given the serious consequences and financial impact potentially arising from the transmission of COVID-19 during bunkering operations, bunker suppliers and purchasers may wish to consider including additional contractual obligations requiring their counterparties to comply with COVID-19 protocols.

The Maritime and Port Authority of Singapore has issued circulars which provide that contactless bunker operations must be carried out. The MPA circulars provide (amongst other things) that a receiving vessel’s crew must not board a bunker barge (and vice-versa), and that the receiving vessel’s crew (instead of the bunker barge crew) are to connect the fuel hose at the receiving vessel’s manifold.

It is in the interest of all parties to take all steps to reduce the risk of transmission of COVID-19 and comply with the MPA circulars in Singapore. However, there is a question as to what remedies a bunker supplier or purchaser will have if their counterparty breaches COVID-19 protocols, resulting in COVID-19 transmission. Under the standard wording of many bunker contracts, it may be difficult for bunker suppliers or purchasers to recover any losses which result from a failure or lapse in the counterparty’s compliance with COVID-19 protocols. Further, the ability to claim damages may be limited by contractual provisions restricting the ability to recover consequential losses.

If they are not already doing so, bunker suppliers and purchasers may therefore wish to press for express contractual wording providing that for bunkering operations taking place in Singapore, the other party will comply with all their obligations under the latest MPA circulars, so that if there is a breach of COVID-19 protocols by the other party leading to COVID-19 infection of their crew, there is a clearly identifiable breach of contract which they can use as an avenue to seek to recover losses. Separately, bunker suppliers may wish to consider whether their contractual terms should be amended to protect their position if there is any loss arising from a failure of the receiving vessel’s crew to properly connect the fuel hose, and whether any additional arrangements need to be made in respect of witness sampling at the receiving vessel’s manifold, given the movement restrictions between vessels.

Paul Collier
Senior Associate, Clyde & Co Clasis Singapore Pte. Ltd.
Direct Dial: +65 6544 6569
Email: [email protected]

Photo credit: Manifold Times
Published: 21 July, 2021

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

7 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

Biofuel

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

Company says it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply.

Published

7 hours ago

July 23, 2026

Admin

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

South Korean petroleum and refining company S-Oil on Wednesday (22 July) said it has started supplying B30 very low sulphur fuel oil (VLSFO), as the company seeks to support shipping’s decarbonisation efforts and growing demand for lower-carbon bunker fuels.

The company said its B30 VLSFO contains 30% sustainable biofuel blended with conventional VLSFO and can be used without requiring modifications to existing vessels, enabling shipowners to comply more readily with emissions regulations from the International Maritime Organization (IMO) and the European Union (EU).

S-Oil said it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply. The system combines VLSFO produced at its Onsan refinery with biofuel production facilities and storage infrastructure in the Ulsan region, allowing the entire process to be carried out within a single logistics hub.

According to the company, the integrated supply chain reduces transportation requirements during production while improving supply efficiency and reliability.

S-Oil also highlighted Ulsan Port as a strategic location for marine biofuel supply, noting the port has strong demand for bio-bunker fuels, particularly from car carriers, enabling prompt and stable deliveries to key customers.

An S-Oil official stated: “In the bio-marine fuel market, not only product quality but also securing a stable supply of raw materials and an efficient supply system are important competitive advantages.

“Based on our existing bunkering business capabilities and the excellent supply infrastructure in the Onsan area, we plan to supply stable and competitive low-carbon fuel.”

Photo credit: S-Oil
Published: 23 July, 2026

Decarbonisation

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

Both will explore solutions spanning emissions measurement and verification, a digital Book-and-Claim framework, and a joint maritime-land inset token package.

Published

7 hours ago

July 23, 2026

Admin

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

PSA International (PSA) on Monday (20 July) said it has signed a Memorandum of Understanding (MoU) with Yang Ming Marine Transport Corporation (Yang Ming) to jointly accelerate the adoption of low-carbon solutions across the maritime value chain.

Beyond emissions measurement and verification, the collaboration will focus on a digital Book-and-Claim framework and a joint maritime-land based inset token package.

“This synergy provides cargo stakeholders with a transparent and accountable sea-land pathway to achieve their decarbonisation targets,” PSA said on its website.

Yang Ming launched the green transport service, EcoSea+. This initiative integrates Yang Ming’s low-carbon navigation capabilities to empower customers with a flexible and transparent strategy to effectively reduce their Scope 3 transportation emissions. By joining forces with PSA, Yang Ming is able to expand the impact of these sustainability actions beyond the ocean.

Building on its position as a global port operator, PSA advances its Node to Network strategy through integrated port and supply chain capabilities that enable a green network of terminal and landside operations to reduce end-to-end supply chain emissions.

The agreement was officially signed by Mr Ivan Chiang, Chief Logistics Officer & Senior Vice President of Yang Ming, and Mr Eddy Ng, Group Head of Operations, Technology and Sustainability of PSA International.

Mr Ong Kim Pong, PSA International Group CEO, said, “As responsible stewards of tomorrow, PSA is committed to delivering sustainable impact across the global port and supply chain ecosystem.

“Tackling the challenges arising from climate change will require the collective efforts of all players in the maritime supply chain sector. We are excited to partner Yang Ming on the decarbonisation of global supply chains and support the transition towards a more sustainable global economy.”

Photo credit: PSA International
Published: 23 July, 2026