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Argus Media: Singapore ship owners grapple with HSFO contamination

Several vessels that have bunkered HSFO in Singapore are now experiencing mechanical issues because of contaminated fuel, according to several fuel testing agencies.
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Several vessels that have bunkered high-sulphur fuel oil (HSFO) in Singapore are now experiencing mechanical issues because of contaminated fuel, according to several fuel testing agencies.

31 March, 2022

Organic chloride compound, a substance which may cause excessive sludging, was found on 15 March in several samples of HSFO delivered earlier that month, according to testing agency Maritec.

Several dozen vessels have since experienced power outages as a result, owing to a loss of power and propulsion, testing agency Veritas Petroleum Services said.

Very-low sulphur fuel oil (VLSFO) bunkers have also suffered from quality issues, such as low flashpoints, in recent weeks, which has resulted in some debunkering operations in the region. The contaminated HSFO is heard to have originated from only a couple of suppliers.

But it is too early to say if any switching to LSFO will occur, with switching possibly unlikely given high LSFO prices as well, traders said. Outright Singapore 0.5pc sulphur marine fuel prices rose to record highs of $1,009.75/t on 9 March. They have since fallen slightly, but remain supported at $828.75/t yesterday.

“The lack of availabilities and high flat price can lead both suppliers and buyers to compromise on quality,” said one local bunker trader.

The premium of HSFO bunkers over HSFO cargoes in Singapore has risen as a result, averaging $15.50/t in March and $25.75/t yesterday, compared to a more typical $10/t, according to Argus data.

Large vessels which are fitted with scrubbers — very large crude carriers (VLCC), very large ore carriers (VLOC), Capesize, and Suezmax vessels — are the ships that will continue to be most affected by the contaminated HSFO. Shipowners with vessels affected by the contaminated fuel have two options, depending on the severity of the contamination and the effect the contamination has had on the vessel’s engine. One option is to return to Singapore to debunker and obtain a new supply of HSFO, while the other is to proceed with their voyage and be compensated financially.

How claims proceed would also be dependent on which version of ISO8217 is used, if it is based on 2005, 2010, or 2017. Clause 5 for each of these revisions differ, with 2005 being the most rigid in its writing. For example, in 2005, it states that bunkers “shall not include incorporation of small amounts of additives”, while in 2010, the term “small amounts” was removed.

A temporary measure would be to perform more lab tests, but these tests can take 2-3 days, which would eat into shipowners’ margins. Argus’ TCE rates for a scrubber-fitted Capesize vessel on the Tubarao to Qingdao route was at $20,554/d on 31 March, with rates for a scrubber-fitted Suezmax vessel from Ras Tanura to Qingdao at $14,164/d.

The contamination of HSFO supplies at Singapore, along with likely supply losses from Russia and utility demand picking up in south Asia, have been driving up 180cst HSFO margins, traders said. Singapore 180cst HSFO margins against Dubai crude values shot up to over one-year highs of -$0.08/bl on 11 March, according to Argus’ assessments. They also entered positive territory today at $0.83/bl for the first time since $0.05/bl on 2 November 2020.

Pakistan’s state-owned marketer PSO has bought 260,000t of HSFO for April-delivery, all priced against 180cst HSFO Mideast Gulf spot assessments on a cfr basis. These are its first purchases since a 65,000t HSFO cargo for first-half November delivery last year, possibly as utility demand for cooling — which typically peaks during summer — picks up. HSFO imports into Bangladesh also reached a five-month high of 263,000t (54,700 b/d) last month, according to Vortexa data.

Meanwhile, leaner low-viscosity fuel oil exports from the US are also tightening low-viscosity molecules supply in markets, further supporting margins. The viscosity of such cargoes could range from 25-100cst, according to market participants.

Just 272,500t of HSFO is expected to depart the US next month, lower than the average 710,900 t/month exports last year, according to Vortexa data. This could be partially because of the loss of Russia fuel oil imports to the US, amid the ongoing Russia-Ukraine conflict. The US had imported 476,900 b/d of HSFO in 2021, with about half coming from Russia, according to Vortexa data.

By Sammy Six, Andrew Khaw and Sarah Giam

 

Photo credit and source: Argus Media
Published: 4 April, 2022

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Winding up

Singapore: Liquidators of Nan Ho Maritime, Nan Xin Maritime issue notices of dividend

Nan Ho Maritime’s second interim dividend and Nan Xin Maritime’s second and final dividend are payable from 4 September, according to Government Gazette notices.
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September 7, 2026

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Notices of dividend for Nan Ho Maritime Pte Ltd and Nan Xin Maritime Pte Ltd, which are currently in creditors’ voluntary liquidation, were published on the Government Gazette on Friday (4 September). 

The following are the details of the notice for Nan Ho Maritime:

Name of Company : Nan Ho Maritime (Pte.) Ltd. (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 200814315C
Address of Former Registered Office : 21 Bukit Batok Crescent, #22-70 WCEGA Tower, Singapore 658065
Amount per centum : 2.305 per centum of all admitted ordinary claims
First and Final or otherwise : Second interim dividend
When Payable : 4 September 2026 onwards
Where Payable : c/o AAG Corporate Advisory Pte. Ltd., 11 Collyer Quay, #07-02 The Arcade, Singapore 049317

The following are the details of the notice for Nan Xin Maritime:

Name of Company : Nan Xin Maritime (Pte.) Ltd. (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 201701966W
Address of Former Registered Office : 21 Bukit Batok Crescent, #22-70 WCEGA Tower, Singapore 658065
Amount per centum : 3.980 per centum of all admitted ordinary claims
First and Final or otherwise : Second and final dividend
When Payable : 4th day of September 2026 onwards
Where Payable : c/o AAG Corporate Advisory Pte. Ltd., 11 Collyer Quay, #07-02 The Arcade, Singapore 049317

 

Photo credit: Benjamin Child
Published: 7 September, 2026

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LNG Bunkering

Singapore-based EPS takes delivery of three LNG dual-fuel bulk carriers

Three vessels are the third, fourth and fifth in the company’s series of 14 Newcastlemaxes being built at the yard, and were delivered five months ahead of their contracted delivery dates.
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September 7, 2026

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Singapore-based Eastern Pacific Shipping (EPS) on Friday (4 September) announced the naming and delivery of three new LNG dual-fuel Newcastlemax bulk carriers from China’s Qingdao Beihai Shipbuilding. 

Cyril Ducau, CEO of EPS, said the vessels were named Mount Victoria, Mount Yulong and Mount Wuyi. 

The three vessels are the third, fourth and fifth in the company’s series of 14 Newcastlemaxes being built at the yard, and were delivered five months ahead of their contracted delivery dates.

“A big thank you to CSSC Group and Qingdao Beihai Shipbuilding, working alongside our EPS team, for the tremendous collaboration and commitment behind this achievement,” Ducau said in a social media post.  

 

Photo credit: Eastern Pacific Shipping
Published: 7 September, 2026

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Port & Regulatory

ISWG-GHG 22: IMO working group aims to present NZF text at MEPC 85

The Chair expressed his observation of a genuine willingness within the Group to make concrete further progress at the next ISWG-GHG meeting and work towards presenting text to MEPC 85.
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September 7, 2026

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The Intersessional Working Group on Reduction of Greenhouse Gas (GHG) Emissions from Ships (ISWG-GHG 22) met for its 22nd meeting from 1 to 4 September 2026, chaired by Mr. Sveinung Oftedal (Norway), according to the International Maritime Organization on Friday (4 September). 

According to a meeting summary by IMO, the meeting had a high level of participation, with nearly 1200 registered participants, in person and online.

During the meeting participants considered the following agenda items:

Consideration of proposals, including documents submitted to MEPC 84 and 85, previous sessions of ISWG-GHG, as well as documents submitted to ISWG-GHG 22, on how to address concerns with the draft amendments to MARPOL Annex VI on the Net-Zero Framework, in line with the 2023 IMO GHG Strategy

Following constructive discussions, the Chair expressed his observation of a genuine willingness within the Group to make concrete further progress at the next ISWG-GHG meeting and work towards presenting text to MEPC 85 that adequately addresses the noted progress made in the consideration of proposals on how to address concerns raised regarding the draft amendments to MARPOL Annex VI on the mid-term measure.

The Group invited interested delegations to continue to consult intersessionally to address remaining concerns with the draft amendments to MARPOL Annex VI, in line with the 2023 IMO GHG Strategy, taking into account views expressed at the Group’s session, with a view to submitting concrete proposals reflecting enhanced convergence allowing timely adoption and effective implementation.

Further consideration of the draft guidelines supporting the uniform and effective implementation of IMO’s mid-term measures.

The Group held a preliminary exchange of views on this agenda item, although time became a limiting factor and the Group and agreed to defer the consideration of all documents submitted to this session under this agenda item to ISWG-GHG 23 (23-27 November 2026).

Further consideration of the development of the IMO Life Cycle GHG Assessment (LCA) framework.

Due to time constraints, the Group was not able to consider the agenda item related to the IMO Life Cycle GHG Assessment (LCA) framework. The Group deferred the consideration of those documents to ISWG-GHG 23, in conjunction with the report of the fourth meeting of the GESAMP-LCA Working Group expected to be submitted to MEPC 85.

Next steps

The next meeting of the Intersessional Working Group on Reduction of Greenhouse Gas (GHG) Emissions from Ships (ISWG-GHG 23) is scheduled for 23 to 27 November 2026, ahead of MEPC 85 (30 November to 3 December).

The second extraordinary session of MEPC (adjourned last October) is scheduled to resume on 4 December, subject to discussions at MEPC 85.

 

Photo credit: International Maritime Organization
Published: 7 September, 2026

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