Business

Argus Media: Viewpoint – Bunker demand could rebound after Covid-19 vaccine

In Panama, VLSFO sales have increased four months in a row to 314,731t as of October, according to the latest data- a 38pc increase from sales in June 2020, it said.

Published

6 years ago

December 28, 2020

Admin

Luis Gronda of global energy and commodity price reporting agency Argus Media on Thursday (24 December) published a summary on the various market forces that could increase demand for bunker fuel in Latin America following the release of the Covid-19 vaccine:

Latin American bunker demand could rebound in 2021 as the Covid-19 vaccines are distributed worldwide and pandemic-related lockdowns are eased.

Price levels for bunker fuel products such as high-sulphur fuel oil (HSFO) and very low-sulphur fuel oil (VLSFO) could rise close to pre-pandemic levels alongside prices in other regions as demand continues to rebound compared to the height of the pandemic in spring of 2020.

The monthly average price for VLSFO in Buenos Aires, Argentina, was assessed at $657.5/t in January and $563.5/t in February of 2020, according to Argus data. That declined to as low as $290/t in May before rebounding going into the summer months. But this jump has not reached price levels seen before the Covid-19 outbreak. That could happen in 2021, depending on how quickly Latin American countries are able to access the vaccines.

Another sign of a rebound that could continue into 2021 is in the bunker sales figures at major Latin American ports. In Panama, VLSFO sales have increased four months in a row to 314,731t as of October, according to the latest data from the Panama Maritime Authority (PMA). That is a 38pc increase from sales in June 2020, but it has not yet reached pre-pandemic levels. VLSFO sales were as high as 388,307t in January 2020, the PMA data shows.

A recovery from the pandemic in the US would likely be beneficial to Panama as it could resume importing bunker fuel from the US Gulf coast at increased levels. Panama has traditionally purchased most of its fuel from the US Gulf, but it has expanded its sourcing from other countries that have VLSFO, such as Argentina and Brazil in Latin America and the Netherlands and Estonia in Europe, data from Vortexa shows. That data also showed 112,600t of fuel oil imported from the Netherlands and 39,600t from Estonia so far in 2020, after Panama did not buy fuel oil from either country in 2019. The fuel oil was likely low-sulphur.

Panama also propped up VLSFO imports from St Eustatius and the Bahamas in the Caribbean. St Eustatius and the Bahamas do not have refineries and all fuel there is imported and aggregated in their oil storage terminals before being re-exported. The VLSFO re-exported to Panama from St Eustatius and the Bahamas originated mostly from Argentina and Brazil. About 300,782t of fuel oil came from St Eustatius to Panama so far this year compared to 78,100t in 2019, according to Vortexa.

HSFO could cruise to a rebound

The possible restart of cruise sailings could be a boon to HSFO demand in the Americas as cruise companies have many ships in their fleet that are fitted with scrubbers. This allows them to continue using HSFO while remaining compliant with the International Maritime Organization’s 0.5pc sulphur restriction that started in 2020.

The major US cruise companies — Carnival, Royal Caribbean and Norwegian Cruise Line — are currently developing plans to resume voyages in 2021. They must enforce policies to prevent the spread of Covid-19, including testing crew members, passengers and a mask mandate onboard its ships, in order to receive permission from the Centers of Disease Control and Prevention to resume cruises.

This resumption would drive up HSFO demand in Latin American and Caribbean countries that these cruise ships frequent including Panama, Bahamas and Jamaica. There could also be an avenue for HSFO exports from Venezuela to the US to restart depending on what stance the incoming administration of president-elect Joe Biden will take towards Venezuela and the sanctions currently active that block oil exports.

In 2018, before the sanctions, Venezuela exported 8.6mn t of residual fuel oil and 2.9mn t of that went to the US, according to Vortexa. Venezuelan exports dropped to 4.3mn t the following year after US sanctions began.

Photo credit and source: Argus Media
Published: 28 December, 2020

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

10 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

10 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

11 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