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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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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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