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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: High Court to hear Norvic Shipping Asia winding up application on 31 July

Application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to Government Gazette notice.

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An application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to a Tuesday (21 July) notice on the Government Gazette.

It noted the winding up application is directed to be heard before the Judge sitting in the General Division of the High Court at 10am on 31 July.

Any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose.

A copy of the winding up application will be furnished to any creditor or contributory of the company requiring the copy of the winding up application by the solicitors of the applicant’s, Oon & Bazul LLC, on payment of the regulated charge for the same.

The Applicant’s address is Hiridostraat 5, Gebouw Prismatrium, 1101CW Amsterdam, The Netherlands.

The Applicant’s solicitors are Oon & Bazul LLC of 103 Penang Rd, #04-04/05/06 Singapore 238467. 

Queries on the winding up application may be directed to the following email addresses: [email protected] and [email protected].

 

Photo credit: Manifold Times
Published: 22 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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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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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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