Connect with us

Business

Singapore: Lawyer ‘strongly recommends’ bunker suppliers revisit T&Cs for contactless bunkering ops

Significant uptick in the number of quality claims being alleged by ship owners has also been seen since the implementation of contactless bunkering operations, notes Partner at Rajah & Tann.

Admin

Published

on

post 50436

The following article on legal responsibility during contactless bunkering operations at Singapore port amidst the Covid-19 pandemic has been written by Nathanael Lin, Partner (Shipping & International Trade) at legal firm Rajah & Tann Singapore LLP; the write-up was made possible through an arrangement led by the Singapore Chamber of Maritime Arbitration (SCMA):

The implementation of contactless bunkering by way of MPA’s Port Marine Circular (“PMC”) No. 21 of 2021 dated 28 May 2021 (since superseded by PMC No. 31 of 2021 dated 14 July 2021), coupled with other safe management measures enacted by the MPA (e.g., Rostered Routine Testing, strict crew change protocols, etc) have significantly reduced the risk of a COVID-19 transmission during a bunkering operation.  This is evident from the fact that we have not seen significant COVID-19 clusters forming on board bunker barges since the NEWOCEAN 6 cluster in January 2021.  Nevertheless, we would strongly recommend that bunker suppliers revisit their General Terms & Conditions, to contractually provide for the allocation of risk in the event that a bunker barge’s crew (or vice-versa) is infected with COVID-19: as we have seen in the case of the NEWOCEAN 6 cluster, any such infection could result in the quarantine of the affected bunker barge (and potentially other barges in the same management / fleet) for weeks, causing significant operational disruption and monetary losses.  Before doing so, bunker suppliers would have to carry out their own due diligence to ascertain if it would be feasible to prove, i.e., trace, the source of any such infection.

In addition to the foregoing, we have seen a significant uptick in the number of quality claims being alleged by ship owners since the implementation of contactless bunkering operations.  Bunker suppliers, bunker clerks, and the crew of the bunker barge are now unable to witness the sampling and sealing of the bunker sample at the receiving vessel’s manifold.  Some of the more creative bunker suppliers have attempted to video the sampling and sealing process through the use of unmanned aircraft, or drones, but MPA’s PMC No. 22 of 2021 dated 4 June 2021 requires the Master of any vessel within Singapore port to notify the Port Master of any unmanned aircraft (including drones).  Our anecdotal experience is that such attempts to use drones to record the sampling and sealing process have not been met with regulatory approval.

The good news for suppliers is that virtually all such quality claims have been settled commercially. Suppliers have been able to fend off such claims by making reference to tests done on the barge-retained sample, as well as the fact that other vessels who have taken delivery of bunkers from the same barge lot have not brought allegations of quality claims based on the same quality parameters which are allegedly off-specification.

The bad news is that dealing with such claims incurs significant opportunity cost, and even small discounts cut into suppliers’ already-thin profit margins – which have seen significant erosion this year following the significant increase in Zhoushan as a price-competitive alternative bunkering port to Singapore.  Any review of suppliers’ General Terms & Conditions should take into account the increased operational risk to bunker suppliers arising from contactless bunkering operations as well.

Nathanael Lin
Partner, Rajah & Tann
Shipping & International Trade
D +65 62320293
F +65 64282092
Email: [email protected]

Editor’s note: The above article is the final piece in a series of SCMA organised write-ups focusing on legal responsibility during contactless bunkering operations. Earlier two articles were:

Related: Singapore: Contactless bunkering protocol breach may lead to regulatory action and tort of negligence claims
Related: Contactless bunkering operations at Singapore port ‘raises questions’ on remedies in event of breach

 

Photo credit: Manifold Times
Published: 28 July, 2021

Continue Reading

Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

Admin

Published

on

By

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

Continue Reading

Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Admin

Published

on

By

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

Continue Reading

Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

Admin

Published

on

By

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

Continue Reading
Advertisement

OUR INDUSTRY PARTNERS



Trending