Connect with us

Analysis

BLUE Insight: USD 250 million shortfall in bunkers received at Rotterdam and Fujairah

‘Short bunker deliveries’ remain prevalent in Rotterdam and Fujairah – will likely be exacerbated by new, more expensive low carbon fuels entering market.

Admin

Published

on

IMG 9944 Manifold Times

Marine and energy consultancy BLUE Insight on Thursday (7 April) said data collected has indicated that a significant number of bunker fuel deliveries made in the major marine fuel hubs of Rotterdam and Fujairah are being made below a financial breakeven point; indicating that fuel buyers are not receiving the volume of bunkers they are paying for.

The findings – which will prompt renewed calls for mass flow meters as a universal standard – indicate that short bunker supplies cost buyers, owners and charterers an estimated $100 million in Fujairah and $150 million in Rotterdam throughout 2021. These estimates are based on the delivery economics of very low sulphur fuel oil (VLSFO), but the research supports similar patterns of losses for high sulphur fuel oil (HSFO) and even greater losses for marine gas oil (MGO).

The financial data, obtained by BLUE Insight for both Rotterdam and Fujairah, is based on significant inputs from suppliers, buyers and surveyors active in those locations, supported by stress testing from BLUE Insight’s team, which has a collective in-depth knowledge and understanding of each of these markets.

‘Short delivery’ malpractices, where suppliers deliver less product than appears on the bunker receipt, has been an age-old tactic for many years within the bunkering sector. In 2017, Singapore, the world’s largest bunkering port, mandated the use of mass flow meters to ensure the accurate measurement of delivered fuel, a law that has been considered universally successful.  However, other ports have not followed suit, and short deliveries have remained a challenge for the industry.

“Our data suggests that the evidence is clear; buyers of fuel are disadvantaged and are not receiving the volume of bunkers they are being billed for,” commented Adrian Tolson, Director and Lead, BLUE Insight.

“This challenge cannot be entirely explained by supplier generated volumetric shortages, but we do believe that the introduction of properly certified mass flow meters in combination with a robust licensing process will do much to eliminate the issues.

“They removed short deliveries of bunkers from the supply picture and saved buyers in Singapore about $1.7 billion in fuel costs in less than four years,”

Tolson says that as carbon regulations tighten, initially through the IMO’s EEXI and CII, and as carbon taxes and levies are introduced, fuel delivery volume discrepancies are likely to have major compliance implications. Inaccurate and higher fuel delivery volumes will overstate emissions and lead to penalties and higher operating costs for owners and operators.

He concluded: “Having the right bunkering regulations in place is critical to managing fuel consumption and emissions.  As the market evolves, it is important that port authorities, governments, and customer measurement authorities help to create an environment where better control is exerted over the supply chain.”

“It starts with getting the right technology mandated and supporting this with standards, regulation and licensing. This includes the global introduction of mass flow meters in ports, or other appropriate metering technology for future fuels, and then making an attitudinal shift so that the approach is right for when fuels become more complex and expensive.”

BLUE Insight will publish a report later in the year once a global analysis has been completed on the true extent of this problem and the continuing challenge it poses to the sector’s reputation. Request a copy of the report preview here.

 

Photo credit: Manifold Times
Published: 7 April, 2022

Continue Reading

Milestone

Singapore retains ranking as world’s top maritime centre for 12th consecutive year

Finds report jointly published by the Baltic Exchange and China’s Xinhua News Agency.

Admin

Published

on

By

Singapore bunker tankers and sky

Singapore on Friday (11 July) said it has retained its ranking as the world’s top maritime centre, marking the 12th consecutive year it has led the Xinhua-Baltic International Shipping Centre Development (ISCD) Index.

Jointly published by the Baltic Exchange and China’s Xinhua News Agency, the Xinhua-Baltic ISCD Index provides an independent benchmarking of the world’s leading maritime hubs.

It evaluates factors such as cargo throughput, port infrastructure, maritime services (including finance, law and shipbroking), and the overall business environment.

The index is closely monitored by shipping lines, port investors, and maritime service providers to track market competitiveness, and inform investment location and service development decisions.

Singapore retained its top position among 43 maritime cities and regions, underpinned by its consistent performance as one of the world’s busiest transhipment and bunkering hubs, and a well-established ecosystem of professional maritime services and expertise.

In 2024, Singapore handled 41.12 million twenty-foot equivalent units (TEUs) in container throughput – a record high – and saw total vessel arrival tonnage exceed 3 billion gross tons. The Port of Singapore also remains the world’s largest bunkering port, having supplied 54.92 million tonnes of marine fuel in 2024.

Home to more than 200 international shipping groups and a growing number of maritime technology start-ups, Singapore continues to strengthen its position as a global node for maritime innovation and enterprise.

This growing industry base is also creating new career pathways in areas such as port operations, digital systems management, automation, maritime law, and sustainability – as the sector transforms to meet the needs of a more digital and decarbonised future.

“We thank our industry partners, the research and enterprise community, and our unions who have been instrumental in Singapore’s journey to become a leading international maritime centre and global hub port,” said Ang Wee Keong, Chief Executive of the Maritime and Port Authority of Singapore.

“We will continue to build on this momentum by innovating and investing in digitalisation, green technologies, and workforce development to strengthen Singapore’s position as a trusted and future-ready international maritime centre.”

 

Photo credit: Manifold Times
Published: 14 July 2025

Continue Reading

Research

ICCT policy brief explores benefits of global 0.10% sulphur cap on marine fuels

Studies have found ships using scrubbers with heavy fuel oil emit more particulate matter and black carbon emissions than those using marine gas oil.

Admin

Published

on

By

ICCT sulphur policy brief

The International Council on Clean Transportation (ICCT) on Tuesday (8 July) introduced a policy brief examining how further reducing the global maximum allowable fuel sulphur content of bunker fuel from 0.5% to 0.1% could affect air pollution emissions and premature mortality from fine particulate matter (PM2.5).

Currently, ships must adhere to a global 0.5% fuel sulphur limit and a 0.1% limit in ECAs, unless they use scrubbers. However, studies have found that ships using scrubbers with heavy fuel oil emit more particulate matter and black carbon emissions than those using marine gas oil.

The brief considered three compliance pathways:

  1. Scrubber Max scenario in which ships that use very-low sulfur fuel oil (VLSFO) switch to high-sulfur heavy fuel oil (HFO) with scrubbers to comply;
  2. Scrubber Allowed scenario in which ships that use VLSFO switch to marine gas oil (MGO) to comply;
  3. Distillate Only scenario in which scrubbers are not allowed and ships that use HFO and scrubbers or VLSFO switch to MGO to comply.

In summary, the research found that relative to a baseline scenario based on 2023 ship activity data, reducing the sulphur content of marine fuels to comply with a 0.1% sulphur limit would:

  • Mitigate air pollution. Across the three compliance scenarios, shipping-attributable sulfur oxide emissions are estimated to fall by 75%–85%, PM2.5 by 46%–66%, and black carbon by 27%–41%. The scenario prohibiting scrubbers yields the highest estimated emission reductions.
  • Reduce premature deaths. The three compliance scenarios avoid between 3,900 and 4,500 premature deaths annually, with the most significant reductions achieved when scrubbers are not allowed.
  • Deliver substantial economic benefits. Health-related economic benefits are estimated to range from $9.3 billion to $10.9 billion annually, depending on the compliance pathway.
  • Incentivize cleaner fuels. A global 0.1% sulfur standard that promotes distillate fuel use would increase baseline fossil fuel costs and reduce the price gap between conventional and zero or near-zero greenhouse gas emission fuels.

The complete policy brief Health and air pollution benefits of a global 0.1% fuel sulfur limit  on marine fuels can be obtained from the link here.

 

Photo credit: International Council on Clean Transportation
Published: 9 July 2025

Continue Reading

Research

Integr8 Fuels report shares comprehensive analysis of Mediterranean ECA

Data reveals a market in rapid transition, confirming some industry predictions while uncovering new, emerging risks for ship operators.

Admin

Published

on

By

Integr8 Fuels trading intelligence (July 2025)

International bunker trading firm Integr8 Fuels on Monday (7 July) shared its new report ‘Mediterranean ECA: Immediate Operational and Commercial Impact of Implementation’ which provides the first comprehensive analysis of the rule’s effects on fuel quality and regional availability.

The data reveals a market in rapid transition, confirming some industry predictions while uncovering new, emerging risks for ship operators. The following key findings include:

  1. Dramatic Supply Shift Confirmed: VLSFO Availability Contracts Sharply. VLSFO’s share of the Mediterranean fuel market has plummeted from over 60% in December to just 37.5% in May. In parallel, the number of ports supplying VLSFO has fallen by 47%, creating new logistical challenges for vessels that continue to use the grade.
  2. VLSFO Instability Spikes as Supply Chain Adapts. Very Low Sulphur Fuel Oil (VLSFO) off specification rates more than doubled from 1.5% in December to 3.8% in May. Critically, one in four (25%) of these off-specs were for total sediment potential (TSP), indicating a rising risk of sludge formation that can damage engines. This trend appears linked to extended in-tank storage and the consolidation of older fuel stocks as demand slows and suppliers pivot away from VLSFO.
  3. Persistent Flash Point Risks in Key LSMGO Hubs. Flash point non-conformance has increased significantly and now accounts for over two-thirds of all LSMGO off specs. Our data shows this is not a random problem, with over 75% of all flash point incidents concentrated in Spain, Turkey, and Italy, signalling a persistent potential for SOLAS violations in core supply zones.

Note: The full report may be obtained from Integr8 Fuels here.

 

Photo credit: Integr8 Fuels
Published: 8 July 2025

Continue Reading
Advertisement

OUR INDUSTRY PARTNERS



Trending