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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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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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