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FuelTrust: Early warning is the best protection against contaminated bunkers

Digital early warning system – combining AI and blockchain technologies – could have helped reduce risks in Singapore bunker contamination case, says Jonathan Arneault, CEO of FuelTrust.

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FuelTrust: Early warning is the best protection against contaminated bunkers

In an exclusive article shared with Manifold Times, Jonathan Arneault, CEO of FuelTrust, a startup company using blockchain and AI to trace the provenance of marine fuels, shares on how a digital early warning system can help protect against contaminated bunkers and warn buyers and suppliers of possible risks before the fuel is bunkered.

The Singapore contamination earlier this year affected hundreds of ships, caused millions of dollar in damages and – like the Houston fuel contamination in 2018 – will most likey result in legal actions for year to come. 

The cause of this disruption has been attributed to a batch of high sulphur fuel oil, containing unacceptable concentration levels of chlorinated organic compounds. Unfortunately current ISO 8217 testing methods are not enough to have detected the contaminates in either the Singapore or Houston incidents. 

FuelTrust: Early warning is the best protection against contaminated bunkers

Far reaching costs

Beyond the price of the fuel itself, widespread contamination comes at a big cost. Insurance claims for disruption to cargo delivery and damage to machinery alone could easily run to hundreds of millions of dollars. There are also the costs that shipowners and operators must bear for repairs, vessels out of operation while being fixed and potential penalties for failing to meet contractual agreements. Moreover, a single batch of bad fuel can cause long-term reputational damage to the fuel suppliers involved.

Ship operators are typically advised to avoid taking on contaminated bunkers by selecting suppliers carefully, performing additional tests on bunkers and checking the details of bunker supply contracts in case there is a time limit for giving notice of quality issues. This is good advice for helping to mitigate risks, but it is far from foolproof, and it does not take into account the commercial time pressures operators face. 

Tracking and analysing the transactions that a batch of fuel goes through to reach the bunker terminal using digital technology can help protect against these major risks, and warn buyers and suppliers of possible risks before the fuel is bunkered. This digital early warning system can also fit in with the commercial timelines of vessel operators and fuel suppliers alike.

Shared data and insight

Access to the content, history and expected performance of bunker fuel prior to sale or bunkering, allows suppliers and shipowners to reduce their operational and financial risks. Suppliers, in particular, can spread these benefits across their customers. In Singapore, a GCMS (Gas chromatography–mass spectrometry) test would have revealed the presence of the organic chlorides causing the fuel contamination. A digital early warning system, combining AI and blockchain technologies, could have helped reduce the risks in this case, by providing a record of the GCMS lab analysis of the supplier storage fuel tanks.

Importantly, these digital technologies work together. Blockchain technology is used to establish a digital record of a batch of fuel throughout its lifecycle, and to allow suppliers to grant data access only to parties that need the information. Recording information using blockchain technology provides a single source of truth for the fuel lifecycle. AI technology is used to analyse the data held in the blockchain and to identify chemical risk, providing an early warning to ship owners and bunker suppliers based on these insights. 

Recording data from the fuel lifecycle using blockchain-based technology provides data security through encryption and permissioned transparency, allowing suppliers to only share this information with their commercial partners – building transparency and trust, but not at the cost of competitiveness. 

Digital technology also allows operators and suppliers to receive alerts when AI algorithms detect anomalies or non-compliant fuels before they are bunkered, saving suppliers and shipowners from reputational, operational and commercial damage. Using AI and blockchain technologies requires no hardware or manual resources, meaning these insights can be made available at very low cost – just a few pennies per barrel.

While the scope of the recent incidents in Singapore again brought attention to the persistent, global issue of fuel contamination, fuel quality problems cause debunkering issues every month in ports around the world – most of which never make the news. At FuelTrust, we have developed a digital solution that delivers trusted transparency for the bunker industry, and provides the early warning indicators to alleviate the types of fuel contamination issues that cost the sector hundreds of millions of dollars. 

 

Photo credit: FuelTrust
Published: 15 September, 2022

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Milestone

Singapore retains titles as Best Global Seaport and Best Seaport in Asia

Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 AFLAS Awards.

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Singapore retains titles as Best Global Seaport and Best Seaport in Asia

The Maritime and Port Authority of Singapore on Friday (29 September) said the Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 Asian Freight, Logistics and Supply Chain (AFLAS) Awards.

These accolades recognise the contributions by the Port of Singapore serving as a key node in the global supply chain, and Singapore’s leadership in driving maritime decarbonisation and transformation.

The annual AFLAS Awards is organised by freight and logistics publication, Asia Cargo News, to honour leading service providers in the supply chain community for demonstrating leadership as well as consistency in service quality, innovation, customer relationship management and reliability. Winners were determined by votes cast by readers of the publication.

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Mr Chee Hong Tat, Acting Minister for Transport and Senior Minister of State for Finance, said: “Singapore is honoured to be named the Best Global Seaport and Best Seaport in Asia. These awards are the result of the shared effort and strong collaboration between the Government, industry, unions and workers. We will continue to grow our port as an efficient, sustainable, and trusted node in global supply chains.”

Mr Teo Eng Dih, Chief Executive of MPA, said: “These awards are testament to the partnership and collaboration between Maritime and Port Authority of Singapore (MPA) with industry and international partners, the research and enterprise community, as well as unions. MPA remains committed to fostering an environment that encourages enterprise, innovation, and talent development.”

“We will continue to work with our partners to enhance Singapore’s connectivity, advance digitalisation efforts, and accelerate the decarbonisation of international shipping in line with the 2023 IMO strategy on reduction of GHG emissions from ships.”

Photo credit: Maritime and Port Authority of Singapore 
Published: 29 September, 2023

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Employment

Melvin Lum appointed as KPI OceanConnect Global Accounts Commercial Director in Singapore 

Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect.

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Melvin Lum appointed as KPI OceanConnect Global Account Commercial Director in Singapore

Global marine energy solutions provider KPI OceanConnect on Thursday (28 September) announced the appointment of Melvin Lum as Commercial Director for its Global Accounts team in Singapore.

Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect. 

The Global Accounts team is an expert unit within KPI OceanConnect, specialised in providing long-term, tailored fuel strategy solutions to a portfolio of Key Accounts on a global scale. Dedicated regional teams located in London, Houston and Singapore work seamlessly across the world and around the clock to support their clients.

Lum joined KPI OceanConnect in 2021 as Senior Key Account manager and has made a significant contribution to the development of the team and optimisation of the daily operations of the unit in Singapore. Lum has vast experience across the supply chain and previously worked with TotalEnergies, Glencore and Global Energy Group prior to joining KPI OceanConnect.

Henrik Zederkof, Head of Global Accounts at KPI OceanConnect, said: "It is always a pleasure to witness the growth of our team members, and Melvin's progression is no exception. I have full confidence in Melvin's expertise, ability to lead the unit and dedication to his team. I look forward to seeing the progress of Melvin and his team, which will undoubtedly bring significant value to our numerous partners and the wider organisation.”

"Melvin will assume a pivotal role within the Global Accounts management team, leveraging his extensive experience in supply chain management and profound insight into emerging technologies. In his new role, Melvin will further enhance our team's skill set, aligning them with our ongoing objectives of supporting our partners in their green transition and digitalisation endeavours."

Melvin Lum, Commercial Director of KPI OceanConnect Global Accounts in Singapore, said: "I am very appreciative of the support and confidence from our management team as I take on this exciting new role. I am enthusiastic to work with the team as we continue to deliver an exceptional experience to our partners and stakeholders with dedication, innovation and passion."

Photo credit: KPI OceanConnect 
Published: 29 September, 2023

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Biofuel

TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel  

Firm’s operations teams in Singapore and Geneva successfully renewed its ISCC EU sustainability certification for the supply of biofuel bunkers, says Louise Tricoire, Vice President.

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TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel

Louise Tricoire, Vice President of TotalEnergies Marine Fuels recently said the firm’s operations teams in Singapore and Geneva successfully renewed its International Sustainability and Carbon Certification (ISCC) EU sustainability certification for the supply of biofuel bunkers.

“This means that TotalEnergies Marine Fuels can continue sourcing and supplying marine biofuels in accordance with EU renewable energy regulations ensuring the highest sustainability standards,” she said in a social media. 

“It's the third year in a row that we have successfully renewed this certification, after a deep and comprehensive audit which showed zero non-conformity.”

She added marine biofuels have grown in demand among shipping companies that want to cut greenhouse gas emissions immediately. 

“TotalEnergies Marine Fuels offers marine biofuels commercially in Singapore and we are starting in Europe. This certification enables us to accompany our customers in their decarbonisation journey with the best standard solutions available today.”

Photo credit: TotalEnergies Marine Fuels
Published: 29 September, 2023

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