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KPI OceanConnect: Counterparty risk assessment in an era of market transformations

Partnering with a transparent, innovative partner is beneficial for shipowners and operators looking to be guided through the evolving market towards decarbonise.
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Charley Davies, Director at international bunkering firm KPI OceanConnect, on Tuesday (14 December) published an opinion piece about the underappreciated challenge of counterparty risk during the market transformation towards decarbonisation. The article covers four core areas: counterparty risk, digitalization, future fuels and sustainability; and carbon offsetting.

Counterparty risk and the role of the trader

There is already a growing portfolio of fuels for shipowners to choose from, and picking the right one for each vessel requires financial and technical analysis. Alongside this evolution, there’s an increased need for counterparty risk assessment.

For some, it will be mostly related to capital access or claims handling and while for others there will be a greater focus on the transparency requirements that enable access to credit and insurance. There’s no doubt that the importance of working with a trusted partner and – most importantly – asking them the right questions is becoming more prominent in this era of marine decarbonization and as we continue to innovate with digital tools.

Digitalisation and the era of advanced technology

Digitalisation will be an important contributor to success moving forward. One of the core advantages of digitalization is its ability to streamline processes and enhance productivity. Though electronic workflows are commonplace in many areas of shipping, there are still endless opportunities in the marine fuels space.

At the forefront of this technology is our digital marketplace for marine fuels: KPI AuctionConnect. The platform provides full transparency to our counterparts. Buyers see prices drop in real time, and they can choose the most suitable fuel for their vessel.

The whole auction lasts up to 15 minutes, and the buyer has full access to the quality certificates and fuel analysis. 

The instant messaging between counterparts builds further on transparency, while ensuring clear communication between both sides.

With many countries continuing to prioritise remote working and relying upon online shopping, KPI AuctionConnect has achieved good traction. 

This further reinforces the need for digital tools, and KPI OceanConnect is in a leading position to provide the right solutions to support the bunkering industry on its journey towards a greener future. Digitalisation can support the transition towards a low-carbon future by enabling transparency and trust between counterparts, especially at a time where we start to explore different marine fuels.

Future fuels

There’s unlikely to be one dominant fuel in the coming transition. Container lines will have a much clearer sense of where and when they will need to bunker because they often operate on fixed routes, and can invest accordingly. However, those in the tramp trades are likely to face substantially more complexity in their marine fuels procurement and planning.

To thrive in this new market transformation, ship owners and operators will need to work with experienced marine fuels services providers and trusted counterparties that know their markets inside and out. Moreover, they’ll want to prioritise a partner that has a consultative approach, as well as the financial strength, independence, and flexibility to provide the right solutions to meet their current and future demands.

We’re fully committed to this sustainable transition, and are the first marine fuels company to set up an Alternative Fuels and Special Projects division. This has already been acknowledged by several clients and prospective partners who have recognised the need to augment their in-house knowledge. It’s been an exciting year for KPI OceanConnect as we have continued to recognise and implement impactful solutions that reduce carbon emissions from the shipping industry.

Carbon offsetting

In our conversations with clients, there’s an almost uniform desire to reduce their carbon footprint. However, in many cases, it’s not yet operationally feasible for them to decarbonize as rapidly as they would like. Green fuels, for example, are only available at scale in a small number of ports. Similarly, many vessels’ engines are only capable of using traditional marine fuels.

The shipping industry will become incrementally subject to the EU’s Emissions Trading System (ETS) under its “Fit for 55” proposals, possibly as early as 2023. The ETS will apply to intra-EU shipping as well as to ships calling at EU ports whose voyages start or end outside of the EU. Under the current proposals, shipping companies will need to surrender allowances for all intra-EU voyages and half for those which are global.

To meet this demand for progress, we launched our carbon offset program. Carbon offsets enable emissions and CO2 output to be balanced with the purchase of an equivalent offset that funds certified projects that generate clean and renewable energy. Moreover, it’s a “now” and “then” strategy because it supports the scale-up of renewable energy projects that can lead to the production of zero-carbon fuels.

In July 2021, we were one of the first marine fuels companies to complete a carbon offset transaction, which we did with an American seismic research vessel owner and long-term client. The voluntary carbon units were derived from a wind farm in Texas and verified by Verra Registry.

We expect more ship operators to offset their fossil fuel use while new fuel availability is limited. In the medium-term, we anticipate that offsets will remain important as the global fleet gradually transitions to engines that are future fuel compatible, and because many new fuels are likely to not be fully carbon neutral.

This reinforces the need to work with a trusted partner as we transition towards low-carbon energy to meet our 2030 and 2050 targets. Partnering with a transparent, innovative partner is hugely beneficial for shipowners and operators looking to be guided through the evolving market on the journey to decarbonisation. 

 

Photo credit: KPI OceanConnect
Published: 15 December, 2021

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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.
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July 23, 2026

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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

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Bunker Fuel

Antwerp-Bruges biofuel bunker sales drops 36% on year in Q2 2026, LNG down 13.4%

Biofuel recorded 26,833 mt in Q2 2026 with 41,939 mt recorded in the same period the year before while port data showed 76,513 mt of LNG being delivered in Q2 2026, down from 88,328 mt.
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July 23, 2026

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Port of Antwerp-Bruges, Deurganck Dock

The Port of Antwerp-Bruges recently published bunker fuel sales data for the second quarter (Q2) of 2026.

Total bunker sales at the port was 2.05 million metric tonnes (mt) in Q2 2026, compared to sales of 1.99 million mt (+3%) during the similar period in 2025.

Deliveries of ultra low sulphur fuel oil, very low sulphur fuel oil, high sulphur fuel oil and marine gas oil in Q2 2026 (against on year) recorded respectively 164,987 mt (+43.6%  from 114,917 mt), 537,926 mt (+12.8% from 476,746 mt), 659,182 mt (+11.6% from 590,544 mt) and 366,329 (-15.7% from 434,766 mt).

Biofuel recorded 26,833 mt in Q2 2026 with 41,939 mt (-36%) recorded in the same period the year before. 

Port data showed 76,513 mt of liquefied natural gas (LNG) being delivered as a marine fuel in Q2 2026, down by 13.4% from 88,328 mt in Q2 2025. Meanwhile, there has been no deliveries of methanol at the port for the year so far.

Related: Antwerp-Bruges biofuel bunker sales plunge 50.6% on year in Q1 2026, LNG soars 214%

 

Photo credit: Port of Antwerp-Bruges
Published: 23 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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July 22, 2026

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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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