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Argus Media: Compensation adds to Singapore bunker contamination row

There is no blanket fix, with any compensation to parties involved having to be handled on a case-by-case basis, says market participants.

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Shipowners that have suffered losses from taking contaminated high-sulphur fuel oil (HSFO) in Singapore are uncertain how they will be compensated, as a market tightness sees delivered premiums for the marine fuel spike.

27 April, 2022

Singapore’s Maritime and Port Authority (MPA) on 13 April named trading firm Glencore as the initial supplier of the contaminated HSFO in Singapore, the world’s largest bunkering hub. The contaminated fuel was then supplied to Chinese bunker supplier PetroChina, which in turn supplied about 200 vessels in Singapore, with about 80 suffering fuel pump and engine damage because of the presence of chlorinated compounds.

Market participants said that shipowners will possibly see debunkering and replacement of cargo costs met by the supplier of the contaminated fuel, but not the demurrage or potential mechanical repair costs incurred by the vessel.

Oslo-based marine insurance provider Skuld said on 1 April that it had seen an “increased number of protection and indemnity and hull claims related to high-sulphur fuel oil at Singapore and which were found to be contaminated with chlorinated compounds.” But when contacted by Argus regarding a potential spread of the contamination beyond Singapore, it declined to offer further comment beyond that already published on its website.

Market participants are varied in their views of how long the situation will take to be resolved, with some saying it will possibly last until the end of May. Others said it could take many months to be finalised. There is no blanket fix, with any compensation to parties involved having to be handled on a case-by-case basis, they added.

Most shipowners are already paying a premium for Gas Chromatography Mass Spectrometry (GCMS) pre-testing, an advanced and more expensive fuel quality test compared with conventional ISO 8217 tests. The results of these tests are usually available in a day. But this has increased to 2-3 days as a result of increased demand following the contamination crisis, further increasing demurrage costs.

Vessels that have taken on contaminated fuel can still sail and usually can make their way to the nearest port for debunkering. It is uncertain what then happens to the contaminated fuel once offloaded. Suppliers might blend down the contaminants in the reclaimed contaminated fuel, although it will be a complicated process requiring large volumes, said market participants.

Glencore placed daily bids for HSFO cargoes in online trading in the first two weeks of April, although it could not be confirmed if this was related to the contamination.

“Contaminated fuel oil retains some of its value, and it might get sold in the market at the cargo price minus $100-150/t or so”, said a local buyer whose vessels had also been affected.

Tightness spurs firmer prices

Singapore 180cst HSFO margins against Dubai crude values entered positive territory for the first time since November 2020 at $0.83/bl on 1 April, which was around when the contamination was discovered, on expectations of a tightening of supplies. They then widened to a record $4.38/bl on 12 April, the highest since Argus started assessments in July 2006. They fell to -$0.57/bl on 25 April, probably because of rare regional exports. But this is still higher than average -$6.06/bl margins in the second half of 2021.

The delivered premium, or the additional price of delivered bunker fuel over the cargo price, has averaged $65/t so far this month compared with a more typical $10-15/t. HSFO delivered premiums last reached such levels in September 2019-January 2020 when the marine fuel market was anticipating and navigating the International Maritime Organisation’s 2020 global sulphur cap.

Bunker fuels have always been an important component for freight, as it affect shipowners’ earnings and at times comprises a sizable portion of the freight cost. The higher fuel costs and uncertainty surrounding the contamination issue have led to shipowners increasing their offer levels, freight participants said. The long downtime taken by vessels as they repair or replace their failed fuel pumps and engines will have reduced the amount of available tonnages, adding further pressure to already tight supply woes in Asia-Pacific.

More stringent regulations by Singapore’s MPA are expected to prevent future fuel contamination crises. One such measure could be making GCMS testing mandatory, which a majority of bunker buyers support based on a survey by UK-based bunker broker NSI.

By Sammy Six, Sarah Giam and Sean Zhuang

 

Photo credit and source: Argus Media
Published: 28 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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