In shipping law, in rem proceedings are unique as a claim may be brought against the ship itself as a separate legal entity rather than the owner personally. This is what allows a ship to be arrested and used as security for such a claim.

Earlier this year, the Singapore High Court in The “Yangtze Harmony” [2026] SGHC 3 clarified an unanswered question: whether the court can lift a “stay” on in rem proceedings – which had earlier been put on hold in favor of arbitration. The court has now confirmed that it can. This means that if a party wins an arbitration, it can return to court and enforce the award as a judgment against the ship or its judicial sale proceeds.

Multi-disciplinary law firm Helmsman LLC focuses on the significance of the “Yangtze Harmony” judgment in enforcing arbitral awards in rem proceedings:

MT: How are arbitration claims against ships usually enforced in Singapore?

In shipping disputes, it is common for a claimant to start court proceedings against a ship to arrest the ship as security, even though the dispute is to be decided by arbitration. These proceedings are then stayed, pending the arbitration’s conclusion, while the claim remains secured in the form of (a) the arrested ship, or (b) its sale proceeds, or (c) any alternate form of security (such as a bank guarantee or an insurer’s letter of undertaking).

Ordinarily, arbitration awards are enforceable only against the parties named in the award (i.e. in personam). If a shipowner fails to pay, the award holder must enforce the award against the shipowner. The significance of the Yangtze Harmony judgment is that it allows an award holder to enforce the award directly against the ship which it previously arrested. This is crucial for cases against one-ship companies where the ship (or its sale proceeds) may be the only meaningful asset for recovery.

MT: If a ship is sold, where do bunker claims rank in getting paid?

While the decision makes enforcement easier, it does not affect the priority in which sale proceeds are distributed. In Singapore, judicial sale proceeds generally satisfy claims in an order of priorities. Higher ranking claims such as dues, Sheriff costs and secured claims are paid first.

A claim for bunkers supplied for a ship’s operation or maintenance are typically considered a statutory lien claim, which ranks at the bottom of the priorities ladder. Bunker suppliers are only paid from whatever funds remain and they share this equally with other similar claimants. A bunker supplier may not know what other high ranking claims exist until after the vessel is arrested or sold. If those claims are substantial, there may be little or nothing left to satisfy bunker claims.

MT: Can bunker suppliers improve their chances of getting paid?

The court has the power to alter the order of priorities when it is equitable to do so, but it is rare and requires evidence of exceptional circumstances. Ordinarily, a claim for the price of unpaid bunkers would not meet this threshold.

While the Yangtze Harmony brings welcome clarity to allow enforcement of arbitral awards as in rem judgments, this does not guarantee recovery, given the risk of priorities. Bunker suppliers in particular should carefully assess the likelihood of being paid in the event of a judicial sale before taking steps such as arresting a ship.

Photo credit: Helmsman
Published: 17 June, 2026

Mithat Çiftçioğlu, Marine Fuels Director at Alkagesta, shared his opinion on risk management for bunkering operations under current geopolitical tensions through the April edition of shipping magazine Deniz Ticaret.

The maritime publication, part of the Turkish Chamber of Shipping (İMEAK Deniz Ticaret Odası), has given Manifold Times permission to republish the article:

Fueling Ships in Turbulent Times

From Oil Shock to Fuel Access Crisis: A New Risk Map for Maritime 2026

The final weeks of the first quarter of 2026 mark one of the most complex periods in recent years for global energy and maritime markets. The sharp rise in oil and refined product prices since February 28 may look like a classic energy shock at first glance, but developments in the maritime sector point to a far deeper structural rupture.

What is being debated in the market today is no longer just oil prices. For traders and shipowners operating in the maritime sector and bunker market, the real issue is not the price of fuel — it is access to fuel. The fundamental question in the market has shifted: not what will the price of fuel be, but will fuel even be available?

In light of the Force Majeure cancellations at Asian ports over the past two weeks, another question must also be considered: Will pre-agreed bunker supply contracts actually be delivered?

From Oil Prices to Logistical Reality

Tensions in the Middle East have created a strong geopolitical risk premium in the oil market. Brent crude briefly surpassed the $100 per barrel mark, triggering a search for a new equilibrium across markets. This will inevitably bring inflation and recession back onto the global agenda in the months ahead.

But the rise in oil prices does not only reflect the risk of supply disruption — it also signals the return of one of the most fragile chokepoints in global energy trade:

The Strait of Hormuz

Approximately one-third of the world’s oil trade passes through this narrow waterway. Around 20 million barrels of oil and petroleum products transit Hormuz daily. Any disruption here would therefore affect not only oil prices, but also global refined product flows and the bunker market directly.

Why Strategic Oil Reserves Are Not the Solution

A commonly proposed solution in energy crises is the release of strategic petroleum reserves. However, releasing these reserves does not directly resolve a bunker crisis. Strategic reserves consist of crude oil. To produce bunker fuel, the following chain must be completed:

Crude oil → Refinery → Product logistics → Bunker port

This process takes time. Strategic reserves can temporarily stabilize oil prices, but they cannot solve the access problem in the bunker market in the short term.

Furthermore, the announced reserve release of 400 million barrels, to be drawn down at a rate of 2.5–3 million barrels per day, can only cover a small fraction of the estimated daily loss from the Middle East — optimistically 8–10 million barrels, pessimistically 18–20 million barrels per day.

A Historic Surge in Bunker Fuel Prices

The per-ton price of VLSFO (0.5% sulfur) bunker fuel has surpassed $1,000, reaching approximately double pre-war levels. This also represents some of the highest prices seen since July 2022.

While prices at bunker hubs such as Singapore and Fujairah are approaching $1,100 per ton, European markets have remained comparatively lower.

The Real Problem Is Not Price — It Is Fuel Access

Obtaining bunker quotes for April has become increasingly difficult, particularly at Asian ports. Even where shipowners and traders can secure quotes, the absence of supply guarantees makes pricing extremely challenging.

A senior executive at Oldendorff Carriers summarized the situation in these words:

“We cannot price cargo because we cannot calculate fuel costs; we cannot calculate fuel costs because there is no supply guarantee.”

The CEO of Maersk has compared the current situation to the pandemic era, stating that companies are attempting to source fuel through methods they have never tried before in order to keep global shipping networks supplied.

While supply is tight and prices are near their peak in Singapore and Fujairah, Rotterdam appears relatively more balanced. However, as the conflict drags on, risk perception in European markets is also rising.

The surge in bunker prices will not only increase costs — it will also affect global maritime transport capacity. Ships are expected to reduce their speeds to conserve fuel. This could lead to a reduction in effective carrying capacity, creating new logistical bottlenecks in global trade.

The importance of working with reliable, long-term partners has never been more apparent than during a crisis such as this.

The Widening Price Spread Between Fuel Types

A notable development in the bunker market in recent weeks is the rapid widening of price differentials between different fuel types. Two spreads in particular have expanded significantly:

• Marine Gas Oil (MGO) – VLSFO
• VLSFO – HSFO

Rising demand for distillate products, refinery production balances, and regional supply tightness are all contributing to this widening. As a result, bunker purchases have become not merely a matter of price level, but a strategic decision tied to product type and port selection.

An Unexpected Development: Biofuels Becoming Competitive

Another noteworthy development in the bunker market is that biofuels have remained at relatively competitive price levels. This creates two important opportunities for shipowners.

On one hand, biofuels remain competitively priced in certain markets. On the other, they offer a means of compliance with new regulations entering into force in Europe — particularly the FuelEU Maritime and EU ETS frameworks, which require reductions in carbon intensity. In this context, biofuels have become a strategic option for many shipowners.

Conclusion: Active Bunker Management Is The New Normal

The 2026 bunker market presents one of the most complex energy trading environments in recent years. The rise in oil prices, geopolitical risk at the Strait of Hormuz, tightness in physical fuel supply, and widening price spreads between fuel types have made bunker fuel management more critical than ever.

The prevailing view in energy markets is that as long as the risk at the Strait of Hormuz persists, turbulence in the bunker market will persist with it. As time passes, the depletion of commercial stocks may deepen the existing supply tightness further.

For this reason, the current situation is viewed not merely as an energy crisis, but as a new stress scenario testing the logistical infrastructure of global trade.

The view increasingly heard across energy markets is this:

“As long as Hormuz remains closed, it will not be oil prices but fuel access that constitutes the defining risk for global shipping.”

Finally, for shipowners and operators, bunker strategies are shifting away from a passive purchasing approach toward a model grounded in active risk management.

Photo and article credit: Deniz Ticaret
Published: 7 May 2026

The maritime energy sector, particularly in Southeast Asia, operates at the confluence of immense demand, strategic geography, and evolving global trade dynamics.

Against this backdrop, Maharani Energy Gateway (MEG), the Master Developer of Maharani Freeport, emerges not merely as an infrastructure development but is advancing a project supporting Malaysia’s role in regional and global energy flows.

Born from a clear recognition of industry needs and a visionary response to the future of oil, energy, bunkering, and shipping in one of the world’s busiest waterways – the Straits of Malacca – MEG seeks to position Maharani Freeport as a strategic nexus for global shipment, storage, and trading operations.

The Inception: A Demand-Driven Vision

“The origins of MEG and Maharani Freeport are rooted in clear industrial demand,” Dato’ Dr. Daing A Malek Bin Daing A Rahaman, Executive Chairman of MEG, tells bunkering publication Manifold Times.

“For decades, the Straits of Malacca has served as a critical ‘choke point’ for global energy trade, with vast quantities of energy products transiting through its waters annually.

“As Asia’s economies continue their robust growth trajectory, the demand for energy has escalated, creating an urgent need for a more sophisticated and integrated energy infrastructure to support these flows.”

Additionally, Dato’ Dr. Daing was quick to point out a comprehensive whole ecosystem is also needed to ensure the project’s success.

“Our understanding is clear: if the project didn’t encompass a full suite of services and integrate seamlessly into the broader energy supply chain, it simply won’t happen,” he explains.

“This holistic approach is deemed essential to enable the Straits of Malacca to leverage on its position as a strategic location in the face of ever-increasing energy flows.

“Maharani Freeport, therefore, has been conceived as a demand-driven energy hub, as a next-generation integrated freeport platform, designed to provide the necessary services and facilities to cope with future energy demands.”

Navigating Challenges: From Environmental Compliance to Stakeholder Buy-in

Developing a project of Maharani Freeport’s scale and strategic importance requires careful planning and close coordination across multiple fronts, notes Dato’ Dr. Daing.

“The developers addressed the inherent challenges of a mega-project by prioritising rigorous environmental and social compliance from the outset, treating EIA, SIA, and continuous monitoring as non-negotiable foundations,” he said.

“Beyond regulations, they focused on patiently building trust and alignment across government, investors, and the public, recognising that coordination across stakeholders is essential.”

“This approach culminated in the project’s endorsement by the federal government on 29 November 2025 as a free port, free commercial zone, and free industrial zone marking a pivotal moment signalling official recognition and paving the way for accelerated development.”

Current Momentum and Future Trajectory for Oil, Bunkering, and Shipping

Currently, business activities within Maharani Freeport are already taking place and is heavily focused on marine activities including ship-to-ship (STS), bunkering and related supporting activities. “Business is already ongoing in the sea. This includes transshipment operations and other activities vital for the energy industries, even as shore-based infrastructure is being developed for Maharani Freeport Industrial Park (MFIP),” Dato’ Dr. Daing stated.

The Freeport is also designed to accommodate floating operations such as Floating Storage Units (FSU), enabling storage and transfer activities directly at sea.

Maharani Freeport operates within a designated freeport framework, supported by the Maharani Freeport Authority, providing a structured and governed environment for marine and energy-related operations.

This strategic sequencing ensures immediate business opportunities are capitalised upon while long-term infrastructure is meticulously built.

“The project follows a phased development approach, providing flexibility in timeline execution and enabling scalable deployment for industry players as infrastructure is progressively built out,” Dato’ Dr. Daing said. “International interest in Maharani Freeport is already significant, with many countries initiating conversations and showing interest, even before the project reaches full operational readiness. This early engagement underscores the global recognition of Maharani Freeport’s potential.”

Industry players seeking to participate in STS, bunkering and related marine operations at Maharani Freeport may engage via MEG’s One-Stop Centre (OSC), which facilitates coordination across regulatory, operational and commercial requirements.

Looking ahead, MEG envisions Maharani Freeport as a next-generation, integrated freeport ecosystem, with the aim of becoming a major oil and commodities transit port for Malaysia. Serving as a strategic and demand-driven nexus for shipment, storage, and trading.

The Maharani Freeport, developed by MEG, is positioned to support evolving energy logistics in the region if not globally, by offering a flexible, and comprehensive platform for the oil, bunkering, and shipping industries for decades to come.

Related: New Johor bunkering hub: Maharani debuts as Malaysia’s first duty-exempted energy freeport

Photo credit: Maharani Energy Gateway
Published: 8 April 2026