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

4 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

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

21 hours ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

21 hours ago

July 21, 2026

Admin

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

Published

21 hours ago

July 21, 2026

Admin

PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post.

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024.

Photo credit: Pacific International Lines
Published: 21 July, 2026