Connect with us

Business

Bunker fuel sales dipped 2% at Singapore port in May, experts provide opinion and forecast

‘As the saying goes without people buying things, manufacturing will slow, trade will also slow and shipping movements slows down. It’s a whole chain of reaction,’ says Simon Neo.
Admin

Published

6 years ago

on

SG bunker tanker sailing

Bunker sales at Singapore port fell by 2.0% on year in May 2020, according to data released by the Maritime and Port Authority of Singapore (MPA) on Friday (12 June).

The dip in marine fuel sales was aligned with the expectation of several industry players who believed COVID-19 (Coronavirus Disease 2019) has finally ‘caught up’ with market demand.

“As mentioned in my earlier commentary, May was looking to be a quieter month compared to April,” explained Dennis Ho, Director & Founder of local marine fuel consultancy Azure Strategic Resources.

“Prices in April, which led to ship operators/owners loading up on their bunkers, encountered a sharp correction in the later part of the month. This was followed by a quick recovery of prices in May, with Gasoil MOPS clawing back about 40% from the lows of April.

“These two factors combined probably led to a lower bunker sales volume for the Singapore market in May.  However, if taken into context of the current global economic situation, I would say the bunker market has been quite resilient.”

Ho noted the wider maritime market being buoyed by optimism as countries begin to relax their strict lockdown measures due to COVID-19.

“Positive trade figures from China also brought hope of a possible V-shape recovery, while other financial markets were also bullish,” he said.

“The expectation of OPEC+ to extend their production cuts, which was a development during the end of May, provided more bullish news to the market.”

Ho expects market prices to be volatile moving forward to June.

“The Singapore bunker market will face price competition with regional ports (i.e. Port Klang, Hong Kong and South Korea),” he forecasts.

“Additionally, ex-wharf discounts over cargo prices in June will likely be lower than May due to ample supplies and weaker demand.

“The continued spat between US and China will also weigh on the broader market. Expectations of a prolonged economic downturn will look bearish for the market if mortality continues to increase in the second wave of COVID-19.”

Simon Neo, Executive Director at marine fuels consultancy SDE International, says the drop in Singapore’s bunkering volume during May “is not unexpected”.

“Many major bunker ports around the world also saw a decline in volume [in May]. Less cargoes are being shipped globally due to the showdown in trade and closure of factories caused by COVID-19 and the continued spat between USA and China,” he notes.

“This was evident in the number of vessel arrivals to Singapore for May [-43.7% y.o.y.]. Shipping is going through a difficult year, while banks’ tightening of credit facilities have also not helped and most likely this will remain the case going forward.

“The tightening of credit facilities not only affects the shipowners but also the bunker industry as a whole.

“Physical suppliers usually give shipowners or charterers open credit for 30 days after bunkers are delivered to the vessel. With the tightening of credit facilities from the banks to physical suppliers, the group will gradually not be able to supply more volume.

“The industry is facing a slowdown in the whole bunker sector as countries try to open up their trades cautiously to prevent a second wave of COVID-19 into their countries, not forgetting people are buying lesser, going out lesser and travelling much lesser now.

“As the saying goes without people buying things, manufacturing will slow, trade will also slow and shipping movements slows down. It’s a whole chain of reaction.”

Singapore bunker volume

A total 3.92 million metric tonnes (mt) (exact: 3,925,000 mt) of bunkers was sold at the port in May, less than 4.00 million mt (exact: 4,006,500 mt) posted during May 2019.

Deliveries of 500 centistokes (cSt), 380 cSt and 180 cSt grades in May 2020 (against on year), were respectively 100,100 mt (-86.8% from 759,100 mt), 685,200 mt (-75.5% from 2.79 million mt), while 180 cSt product recorded no sales (-100% from 19,600 mt).

Low sulphur 500 cSt, 380 cSt and 180 cSt products respectively recorded 3.5 million mt sales (compared to zero), 1.92 million mt (significantly up from 19,700 mt), and 76,600 mt (+92% from 39,900 mt).

The latest data introduced new categories, namely low sulphur 100 cSt, and ULSFO which respectively recorded 657,200 mt and 58,400 mt of sales in February.

Low sulphur marine gas oil (LS MGO) sales were posted at 351,400 mt (+65.6% from 212,000 mt) and MGO at 72,100 mt (-5.0% from 75,900 mt).

Related: Marine fuel consultants explain Singapore’s 10.8% on year bunker sales increase in April
Related: Singapore: March 2020 bunker fuel sales rise 5.7% on year
Related: Singapore: February 2020 bunker sales volume up 2.5% on year
Related: Singapore: January 2020 bunker sales volume up 7.5% on year

 

Photo credit: Manifold Times
Published: 15 June, 2020

Related Topics:
Continue Reading

Winding up

Singapore: High Court to hear Norvic Shipping Asia winding up application on 31 July

Application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to Government Gazette notice.
Admin

Published

15 hours ago

on

July 22, 2026

By

RESIZED singapore high court

An application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to a Tuesday (21 July) notice on the Government Gazette.

It noted the winding up application is directed to be heard before the Judge sitting in the General Division of the High Court at 10am on 31 July.

Any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose.

A copy of the winding up application will be furnished to any creditor or contributory of the company requiring the copy of the winding up application by the solicitors of the applicant’s, Oon & Bazul LLC, on payment of the regulated charge for the same.

The Applicant’s address is Hiridostraat 5, Gebouw Prismatrium, 1101CW Amsterdam, The Netherlands.

The Applicant’s solicitors are Oon & Bazul LLC of 103 Penang Rd, #04-04/05/06 Singapore 238467. 

Queries on the winding up application may be directed to the following email addresses: [email protected] and [email protected].

 

Photo credit: Manifold Times
Published: 22 July, 2026

Continue Reading

Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.
Admin

Published

15 hours ago

on

July 22, 2026

By

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

Continue Reading

Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.
Admin

Published

15 hours ago

on

July 22, 2026

By

HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

Continue Reading

Trending