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

Shell Singapore charged over Pulau Bukom oil leaks, reporting delays

Shell faces four charges under Singapore’s Prevention of Pollution of the Sea Act over two 2024 oil discharge incidents at its Pulau Bukom facility.

Published

14 hours ago

September 25, 2026

Admin

2 MPA craft (left) supporting Shell craft in the clean up operations of the oil sheens taken on 28 Dec 9am

Shell Singapore has been charged over two incidents in 2024 involving oily mixtures discharged into Singapore waters from its facilities at Pulau Bukom, according to media reports on Tuesday (22 September).

The company faces four charges under the Prevention of Pollution of the Sea Act, including allegations that it failed to report the discharges to the port master immediately.

The first incident occurred on 20 October 2024, when approximately 40 metric tonnes (mt) of oily mixture was discharged through a hole in a pipeline at the Shell Singapore Energy and Chemicals Park at about 8am.

Shell is accused of reporting the incident to the port master at about 12.55pm, several hours after the discharge occurred.

The second incident took place between 26 and 28 December 2024. An estimated 485kg to 956kg of oil mixture was discharged into Singapore waters from the same facility.

Shell is accused of failing to report the incident immediately, with notification to the port master made at about 11.50am on 26 December 2024, according to the charges.

Singapore’s pollution-prevention regulations require occupiers of such facilities to report oil or oily-mixture discharges into Singapore waters “without delay and to the fullest extent possible”.

Shell’s representative requested an eight-week adjournment at the 22 September hearing, citing the need to obtain internal instructions, appoint counsel and locate historical records. The company said the business associated with the incidents had been divested in 2025.

The case was adjourned to October. Shell is also facing prosecution by Singapore’s National Environment Agency over the same incidents.

Photo credit: Maritime and Port Authority of Singapore
Published: 25 September, 2026

Incident

MPA probes Singapore Strait collision involving fishing vessel, bulk carrier

MPA says there were no reported injuries among the crew of either vessel in the incident involving China-registered fishing vessel “Lu Qing Yuan Yu” and Panama-registered bulk carrier “First Margaux” .

Published

14 hours ago

September 25, 2026

Admin

Panama-registered bulk carrier “First Margaux”

The Maritime and Port Authority of Singapore (MPA) on Tuesday (22 September) said it is investigating the incident involving the China-registered fishing vessel Lu Qing Yuan Yu and the Panama-registered bulk carrier First Margaux in the Singapore Strait on 17 September.

MPA said there were no reported injuries among the crew of either vessel or pollution arising from the incident and navigational traffic was not affected.

Videos circulating on social media showed the bulk carrier colliding with the fishing vessel.

“The fishing vessel took on water during the incident but remained afloat and stable, with the crew taking measures to manage the situation onboard,” MPA said.

The vessel was subsequently towed to Raffles Reserved Anchorage for assessment.

Essential crew remained onboard to support the tow, while the Singapore Civil Defence Force supported the transfer of other crew to shore.

MPA added it also issued navigational safety broadcasts to keep other vessels clear of the tow and escorted the vessel into port with a MPA craft.

Photo credit: MarineTraffic / Arnold Pohen
Published: 25 September, 2026

Mass Flowmeter

TFG Marine deploys first MFM-equipped bunker barge in Jamaica

Bunker barge “Kingston Trader” is currently on its way to Jamaica following the successful installation of a Coriolis mass flow meter (MFM) system, certified to ISO 22192.

Published

14 hours ago

September 25, 2026

Admin

TFG Marine deploys first MFM-equipped bunker barge in Jamaica

Global marine fuel supply and procurement firm TFG Marine on Thursday (24 September) said its bunker barge Kingston Trader is currently on its way to Jamaica following the successful installation of a Coriolis mass flow meter (MFM) system, certified to ISO 22192.

The company said the latest installation brings the proportion of TFG Marine’s fleet equipped with MFMs to approximately 88%, marking another step in the continued rollout of this technology across its global bunkering operations.

“The barge will operate in Jamaica through our local partnership with Scott Petroleum, becoming the first bunkering vessel in the region equipped with this technology and bringing greater accuracy, transparency and assurance to fuel measurement for customers across the Caribbean,” TFG Marine said in a social media post.

“Together with Scott Petroleum, we look forward to working collaboratively with the Maritime Authority of Jamaica, the The Port Authority of Jamaica, Petrojam Limited and other stakeholders to share our experience of MFM technology, explore its wider benefits and support the continued development of bunkering standards across the region.”

Manifold Times previously reported TFG Marine continuing to expand MFM technology across its US Gulf Coast bunker fleet with Buffalo B414 and Buffalo B304 being fitted with the equipment.

Last year, TFG Marine announced it reached a key milestone in its global digitalisation programme with the installation of an ISO 22192-compliant MFM on the Buffalo 404, a barge on time charter from American bunker barge company Buffalo Marine Service Inc.

The installation was part of TFG Marine’s wider strategy to equip close to 90% of its global bunkering fleet with MFMs by 2026 as a commitment towards improving data integrity, streamlining operations and strengthening trust in marine fuel transactions.

Photo credit: TFG Marine
Published: 25 September, 2026