Global energy and commodity price reporting agency Argus Media on Tuesday (25 August) published an update on collapsed Hin Leong Trading’s storage capacity at Singapore’s Universal Terminal that has been allotted to other bunker trading firms:
Trading firms Trafigura and Gunvor have taken over fuel oil storage capacity at Singapore’s Universal Terminal that was previously held by collapsed local company Hin Leong Trading (HLT).
The reassignment of the capacity comes after HLT applied to the Singapore courts for protection against creditors earlier this year.
The amount of storage capacity involved is unknown. Universal Terminal has 2.33mn m³ (14.7mn bl) of storage capacity in total, although it is unclear how much is used for fuel oil. The new leases have not been confirmed by Trafigura or Gunvor.
Hin Leong sought court protection in April because of “severe financial difficulties” caused by falling oil prices, moves by bank lenders to reduce their exposure to the commodity financing industry, and a drop in demand for oil and bunkers caused by the Covid-19 pandemic. The collapse of the company, one of Singapore’s biggest oil trading firms, left banks facing hundreds of millions of dollars in losses and caused a scramble to claim almost 3mn bl of oil products cargoes linked to the firm.
Allegations of fraud have since emerged, and HLT’s founder Lim Oon Kuin was charged with abetting forgery earlier this month.
Hin Leong also has a bunkering arm, Ocean Bunkering Services, which has a major presence in the Singapore bunker market.
Photo credit and source: Argus Media
Published: 26 August, 2020
The newly launched Code of Best Practices – Commodity Financing guidelines will be the new ‘reference point’ taken by banks when considering to give trade finance to trading houses, believes Ian Teo.
Captain Daknash Ganasen, Senior Director (Operations & Marine Services), MPA, provides direction on what should players do when providing bunker fuel to a COVID-19 infected ship, and more.
Garren Hay will be responsible for sales of the PANOLIN range of Environmentally Acceptable Lubricants for the Singapore sole distributor agent Gealubes Consulting & Trading Pte Ltd.
Universal Alliance, BMS United, Digiland International, Goodwood Associates, Southernpec (Singapore), and Taigu Energy were involved in alleged circular fictitious trades of fuel oil during July 2015.
Bunker orders of ISO 8217:2010 spec LS 380 cSt 0.5% for Nord Gemini, Nord Titan, Ocean Rosemary, and Luzern were placed through global commodities trading and logistics house Trafigura Pte Ltd.
While Covid-19 concerns are important, Captain Rahul Choudhuri was quick to note this does not mean bunker fuel related issues have indeed disappeared from the shipping sector.