Business

Argus Media: Singapore spot bunker demand falters on high prices

Singapore is very expensive these days and owners are trying to avoid purchasing VLSFO unless they have no other choice, remarked a London-based broker.

Published

3 years ago

June 15, 2022

Admin

Record-high and continuously-rising outright bunker prices are deterring ship owners from buying on the spot market in Singapore, according to several market participants.

14 June, 2022

Record-high and continuously-rising outright bunker prices are deterring ship owners from buying on the spot market in Singapore, according to several market participants.

The price of delivered very-low sulphur fuel oil (VLSFO) in Singapore has averaged $1,117/t so far this month, up by 19pc from its average in May, according to Argus data.

Bunker prices have rallied strongly in line with Brent crude prices since Russia's invasion of Ukraine in March, with sanctions resulting in a severe tightening of crude and product supplies, and an ongoing change in trade flows.

Shipowners are reducing the quantity of fuel purchased in the spot market as a result, hoping for flat prices to cool down. But this is unlikely, given tightening balances in the face of geopolitical uncertainty.

"Spot demand has definitely been poor," said one local trader.

"We can feel the impact of high flat prices weighing on average demand," remarked a local supplier.

Argus has reported an average of eight spot bunkers deals per day so far this month, down from 10 in May.

Shipowners that purchase bunker fuel based on contracts are heard to have been maximising contract liftings. But owners of vessels that tramp — which do not have a fixed schedule, itinerary or ports of call — need to buy fuel on the spot market regardless of price.

"We have very few options here – when ships need bunkers, I need to buy, timing is everything," said one buyer.

"Singapore is very expensive these days and owners are trying to avoid purchasing VLSFO unless they have no other choice, and so many enquiries are much smaller than you would usually expect," remarked a London-based broker.

The higher outright prices also mean that larger cargoes can lead to some owners having issues with outsized credit exposure.

Physical suppliers, meanwhile, are struggling with increasing operating costs, which are depressing their profit margins.

Bunker barges that supply fuel to ships burn low-sulphur marine gasoil (LSMGO). LSMGO prices have risen even more than VLSFO given a lack of availabilities of middle distillates.

"Launch boat operators have been increasing their fuel surcharge and launch fees," said one local gasoil trader.

It is not only Singapore where bunker prices are high, with tight availabilities seen across other ports in Asia, such as South Korea, Japan and China.

VLSFO prices in Fujairah have traded at a discount of up to $107.50/t to Singapore since the middle of May, but that discount is now narrowing again as local supplier Uniper is heard to be tight on product.

Despite slowing spot demand in Singapore, the city state's consumption in May rebounded to over 4mnt, according to data from the Maritime and Port Authority (MPA).

By Sammy Six

Photo credit and source: Argus Media
Published: 15 June, 2022

Business

Singapore: Ang Wee Keong from IMDA appointed as new MPA Chief Executive

Ang will relinquish his IMDA appointment as Assistant Chief Executive (International) of the Info-Communications and will officially take over from Teo Eng Dih from 16 June.

Published

7 hours ago

April 30, 2025

Admin

Singapore: Ang Wee Keong from IMDA appointed as new MPA Chief Executive

Singapore’s Ministry of Transport on Tuesday (29 April) said Mr Ang Wee Keong, currently the Assistant Chief Executive (International) of the Info-Communications Media Development Authority (IMDA), will concurrently be appointed as Chief Executive (Designate) of the Maritime and Port Authority (MPA) from 1 May to 15 June 2025.

He will relinquish his IMDA appointment and be appointed Chief Executive of MPA from 16 June 2025. He will succeed Mr Teo Eng Dih, who will be appointed Deputy Secretary (Special Duties) at the Ministry of Transport with effect from 16 June.

Mr Teo will remain as a member of the MPA Board until he steps down as CE MPA. Mr Ang will be appointed as a board member with effect from 16 June 2025.

“The Ministry of Transport thanks Mr Teo Eng Dih for his leadership and contributions as Chief Executive of MPA, and welcomes Mr Ang Wee Keong,” the ministry added.

Mr Teo Eng Dih (张英智)

As the Chief Executive of the MPA, Mr Teo made significant contributions to grow Singapore’s International Maritime Centre and the PIER71TM startup ecosystem. During his tenure, the Port of Singapore attained new records in vessel arrivals, container throughput, bunker sales and registrations under the Singapore Registry of Ships. MPA was also recognised as one of the key global regulators by Lloyd’s List. These milestones were reached amidst a complex global operating environment marked by geopolitical uncertainties, supply chain disruptions and technological shifts affecting the flow of goods and supplies worldwide.

Mr Ang Wee Keong (洪伟强)

As the Assistant Chief Executive (International) of IMDA, Mr Ang made significant contributions in advancing Singapore’s digital interests and thought leadership in the international arena. He strengthened Singapore’s network of digital economy partnerships, and expanded collaboration through platforms like the ASEAN Digital Ministers’ Meeting, Forum of Small States and Asia Tech x Singapore (ATxSG). He also oversaw the formulation of forward-thinking policies and regulations in digital technology and services to advance the growth of Singapore’s digital economy, including the upcoming Digital Infrastructure Act to enhance the resilience and security of systemically important digital infrastructure.

Photo credit: Singapore Polytechnic
Published: 30 April, 2025

Technology

TFG Marine to launch of ZeroNorth e-BDNs at Port of Sohar after Singapore success

Kenneth Dam announced the successful trial and imminent roll-out of ZeroNorth’s electronic bunker delivery note solution for its customers in the Port of Sohar, in Oman.

Published

7 hours ago

April 30, 2025

Admin

TFG Marine to launch ZeroNorth e-BDNs at Port of Sohar after success in Singapore

Global marine fuel supply and procurement firm TFG Marine on Tuesday (29 April) announced the company’s successful trial and imminent roll-out of ZeroNorth’s electronic bunker delivery note (e-BDN) solution for its customers in the Port of Sohar, in Oman.

A first for the Middle East region following the successful deployment of the same technology earlier this year by TFG Marine at the Port of Singapore. The eBDN trial in Oman was completed in collaboration with ZeroNorth and SGTraDex, using the Singapore standards as a benchmark.

Kenneth Dam, Global Head of Bunkering, said: "We’re excited to partner with ZeroNorth, Fratelli Cosulich Group Bunkers, SGTraDex and SOHAR Port and Freezone to shortly introduce e-BDNs to our customers here in Oman.”

“This technology, that we have already successfully introduced in Singapore is yet another step in modernising our industry. It will streamline the bunker delivery process, cut administrative burdens, enhance digital documentation and help build a smarter, more connected bunkering sector.”

“We remain committed to establishing e-BDNs as a global standard for bunker fuel delivery and will continue to work closely with port authorities to advocate for and deploy this technology across our operations.”

Dam made the announcement at the Oman Maritime, Ports and Energy Forum, during the panel discussion on The Transformative Power of Data: The Evolving Role of Digitalisation in Shipping and Bunkering.

Dam added the fully digital solution — accessible through TFG Marine’s mobile app and integrated with SGTraDex’s digital infrastructure, — will enable the inclusion of additional data, such as mass flow meter readings during fuel deliveries.

“By integrating this technology, we will drive significant improvements in efficiency, accuracy, compliance, and sustainability across our operations, complementing the global mass flow meter rollout across our fleet and reinforcing TFG Marine’s position at the forefront of the modern bunkering industry,” he said.

Manifold Times previously reported TFG Marine announcing the introduction of ZeroNorth’s e-BDNs for its customers in Singapore during 23rd Singapore International Bunkering Conference (SIBCON) by the end of 2024.

In November last year, TFG Marine announced its first digitalised marine fuel delivery in Singapore using electronic bunker delivery notes (e-BDNs).

Its team supplied VLSFO bunker fuel to Pacific Basin Shipping Limited’s Illovo River bulk carrier, marking the first of four bunkering deliveries that month where this new technology was successfully deployed.

Photo credit: TFG Marine
Published: 30 April, 2025

Biofuel

Hercules Tanker Management vessel “Mount Kibo” takes on B30 bio bunker fuel

HTM said its tanker was successfully supplied with B30 bunkers by tanker “Hercules Sky”, another HTM-owned vessel and operated by Peninsula, marking the first biofuel supply to the HTM fleet.

Published

7 hours ago

April 30, 2025

Admin

Hercules Tanker Management vessel “Mount Kibo” takes on B30 bio bunker fuel

Hercules Tanker Management (HTM) on Tuesday (29 April) announced that its tanker Mount Kibo has been successfully supplied with B30 bunkers by tanker Hercules Sky, another HTM-owned vessel which is operated by Peninsula.

The operation marked the first biofuel supply to the HTM fleet.

HTM is the shipping venture launched last September by John A. Bassadone, founder and CEO of independent marine fuel supplier Peninsula.

HTM said the operation carried out in the Strait of Gibraltar aligns with the recent discussions at MEPC 83, where key decisions were made to advance maritime decarbonisation, including new fuel standards and a global pricing mechanism for emissions.

“Additionally, this initiative supports the objectives of the FuelEU Maritime Regulation, which promotes the use of renewable, low-carbon fuels and clean energy technologies for ships,” it said.

“By utilising biofuels, we are contributing to the reduction of greenhouse gas emissions and supporting the industry's transition towards cleaner energy solutions.”

Photo credit: Hercules Tanker Management
Published: 30 April, 2025