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IBIA Convention 2020: Session summary of the APAC – Bunker Suppliers and Buyers Panel

Representatives of Oldendorff, Stena Bulk, Fratelli Cosulich, and TOTAL Marine Fuels Global Solutions discuss IMO 2020, activities in the last 12 months, and future bunker industry developments.

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APAC Bunker supplier and buyers panel final

The second day of the International Bunker Industry Association (IBIA) Convention kicked off on Wednesday (11 November, 2020) with the Asia-Pacific edition of the Bunker Suppliers and Buyers Panel.

Representatives from Oldendorff, Stena Bulk, Fratelli Cosulich, and TOTAL Marine Fuels Global Solutions gathered to discuss IMO 2020, activities in the last 12 months, and future industry developments in a session moderated by Singapore bunker publication Manifold Times.

IMO 2020 – A tick off the box by shipowners

Jens Maul Jorgensen, the Director of Bunkers at Oldendorff, was glad earlier preparations by the German dry bulk shipowner paid off.

“Looking back, I will not use the word ‘a piece of cake’ but it was much easier than we expected. We closed our IMO 2020 taskforce group in February because it was already done and now we just looking forward to IMO 2030,” he said.

Jorgensen notes Oldendorff to have experienced lesser quality issues with the new generation of Very Low Sulphur Fuel Oils (VLSFOs) when compared to High Sulphur Fuel Oils (HSFOs).

“We have to remember HSFOs have always been a blended but shady product with all kinds of stuff thrown in,” he explains.

“VLSFOs, though also blended, are produced under a more controlled environment. So therefore, I would say it’s much better now than before.”

Jorgensen’s view was echoed by Lars Malmbratt, General Manager Bunker Procurement of tanker shipping company Stena Bulk.

“I can agree that it has been a lot of work putting this together in 2018 to 2019 but once we reached the end of 2019 till early 2020 I will say that it actually went well,” says Malmbratt.

“There were some bottlenecks here and there in the early stages but as it is right now it went better than we expected actually.”

He believed bunker suppliers have learned from the Houston marine fuel contamination crisis seen in 2017 and have now integrated fuel testing into the operations to ensure the product to be fit for purpose.

“So, now we have seen an improved quality on bunker fuels in general. Energy values have moved up a little bit as well and now we have fewer sulphur issues not only for APAC but also for pretty much all over the world.”

Bunker suppliers discuss commodity trading mishaps of 2020

An unusual amount of market dynamics took place in 2020 where issues such as Covid-19, bunker price fluctuations, commodity trading mishaps, and new practises of working from home were introduced.

Timothy Cosulich, the CEO of Singapore bunker supplier and trader Fratelli Cosulich, was keen to share his opinion on the widely reported Singapore commodity trading mishaps.

“It is true that our sector has seen a number of cases, and frauds and bankruptcies and so on. And the problem is that those cases has kind of painted the bunkering industry as an almost undesirable one, from a financing point of view,” he said.

“I challenge that idea because I don’t think that is the case. I’m not denying that there have been cases where banks have lost a lot of money but I do think banks are also responsible to do their own due diligence on their clients.

“In some cases, we know that there were millions, hundreds of millions, of losses hidden for years and I wonder how it is possible for a bank not to check that kind of thing.”

Cosulich, who is the current Vice Chairman of the board at IBIA, and also the Chairman of IBIA Asia, believes the situation could be avoided with a higher level of transparency between financial institutes and their stakeholders.

“I think it is important that there is a bigger shift from the industry point of view where every player has to be prepared to be transparent and share financial information with counterparts,” he states.

“On the other side, banks need to continue to support our industry and at the same time also request a higher level of transparency and governance from players.”

Jesper Rosenkrans, the Global Sales and Business Development Director of TOTAL Marine Fuels Global Solutions (TMFGS), believes a key takeaway for 2020 to be in the choice of business partners.

“It’s hard to mention the last 12 months without mentioning a couple of pretty newsworthy credit related events in our part of the world, though we [TMFGS] haven’t really been impacted by that as a company,” he says.

“Choosing who we work with is probably the most important decision that we make. This is the first decision before any kind of protocols and procedures in place to mitigate risk.

“This has been a year where the importance of that decision has been underlined. And I think that is, for me, one of the big takeaways from 2020.”

Expected developments moving forward

The final part of the Bunker Suppliers and Buyers Panel focused on future developments forecast by the panellists. Malmbratt and Cosulich both expect more market consolidation to take place in the coming year.

“In terms of the of the market, I expect more consolidation, we touched the subject on credit and the reliable partners and things like that,” notes Malmbratt.

“I do think that we’re going to see the market moving in the direction of consolidation. The suppliers are talking about having reliable clients, but from our side it’s equally important to have financially sound suppliers that stand up for you.

“We have experienced from past cases where it’s been terrible dealing with bunkering companies that are not performing.”

“I think there will be a move towards, not only more reliable, but certainly more structured bunker traders as well as marine fuel suppliers. I also believe there will be an increased kind of appreciation for more organised players in the bunkering industry,” adds Cosulich.

Rosenkrans had much to share regarding TMFGS’ future plans.

“On the marine fuels side, one of the big developments this year is the increase in Chinese bunker volumes; particularly at the Zhoushan Ningbo area where we’ve seen quite a lot of growth there and think that’s going to continue. We are happy to be present there as part of a joint venture (Zhejiang Petroleum Marine Fuels Co Ltd),” he said.

“On the longer term, TMFGS has very actively made quite a lot of investments both in Europe and Asia in terms of LNG infrastructure to assist our ship owning clients as part of the expected energy transition in support of shipping’s decarbonisation strategy.

“We’re not suggesting that LNG bunker fuel is the only or permanent solution for all vessels but if you’re looking at investing in a newbuilding program, now or in the coming few years, you’re probably having to decide between oil or gas as fuel because the other technologies aren’t quite ready yet.

“From TMFGS’ point of view, LNG is a very good solution for the transition period until we find a carbon neutral solution to fuel ships. So, that’s what we see happening in the next 12 months and beyond.”

 

Photo credit: International Bunker Industry Association
Published: 12 November, 2020

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Methanol

China: Stolthaven collaborates with ITOCHU Corporation for green methanol bunkering and export ops

Partnership will focus on development of a methanol bunkering system and enhancing methanol export capabilities.

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Stolthaven logo MT

Stolthaven Terminals, through its joint venture Tianjin Stolthaven Lingang Terminal (Stolthaven Lingang), on Thursday (12 June) said it has signed a Memorandum of Understanding (MoU) with Itochu Corporation to collaborate on storage and logistics solutions for green methanol.

This strategic partnership will focus on supporting the growing demand for low-carbon fuels through the development of a methanol bunkering system and enhancing methanol export capabilities.

Stolthaven Lingang has world-class terminal infrastructure and a strategic location in the Tianjin Lingang Industrial Zone in China. Through this MoU with Itochu, Stolthaven Lingang will seek to strengthen the supply chain infrastructure needed for alternative fuels.

Methanol is emerging as a viable marine fuel due to its lower carbon intensity and existing ease of handling, and the development of methanol bunkering services is expected to serve the increasing demand from the shipping sector.

Selenna Xu, general manager, Tianjin Stolthaven Lingang Terminal says: “This strategic partnership represents a pivotal step in building a green energy storage and transportation ecosystem in Northern China. By combining our terminal network and service innovation with Itochu’s global expertise, we aim to drive forward the development of a green energy hub for the region, with export capabilities beyond China.”

Satoshi Tojo, general manager at Itochu Corporation comments: “Itochu Corporation is committed to advancing the green methanol value chain through strategic partnerships and innovation. By leveraging our extensive global network and expertise in the energy and chemicals sectors, we are well-positioned to significantly contribute to the transition towards cleaner fuels.”

 

Photo credit: Stolthaven Terminals
Published: 13 June 2025

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Biofuel

LR: “Whitchampion” becomes first bunker tanker certified to load, carry and blend FAME B100 onboard

Second Whitaker tanker, Whitchallenger, will be undergoing a similar approval process and is expected to be certified later this year.

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Classification society Lloyd’s Register (LR) on Thursday (12 June) claim UK-based bunker operator John H. Whitaker (Tankers) Limited’s bunker tanker Whitchampion has become the first in the industry to load, carry and blend Fatty Acid Methyl Esters (FAME B100) onboard under IBC Code and MARPOL Annex II regulations.

The development occurred after LR issued a chemical certification to allow Whitchampion to perform onboard blending of biofuels with petroleum distillates and residual fuel oils. The operation is authorised within UK coastal waters under a Tri-Partite Agreement between the Isle of Man Flag and the UK Maritime and Coastguard Agency (UKMCA).

A second Whitaker tanker, Whitchallenger, will be undergoing a similar approval process and is expected to be certified later this year.

At present, bunker tankers certified under MARPOL Annex I are limited to carrying blends no more than 30% FAME under IMO regulations. Oil Fuels with higher bio-content fall under International Bulk Chemical Code (IBC Code) and MARPOL Annex II, typically requiring full chemical tanker status. That regulation has, in effect, frozen out a significant portion of the conventional bunker tanker fleet from supporting mid-to-high-range biofuel blending.

Whitaker’s Whitchampion is the first LR-classed vessel to bridge that gap. Through comprehensive Gap Analysis and Risk Assessment against the IBC Code and MARPOL Annex II requirements, LR developed an approach which involved mitigation of the assessed risks. This led to obtaining waivers/exemptions from the Flag Administration allowing this Annex I bunker tanker to gain chemical certification to carry FAME as cargo, without needing to convert to full chemical tanker status.

The successful delivery of dedicated onboard training on the safe handling of FAME has also led to UKMCA approval and a FAME Restricted endorsement to the existing Oil Tanker Dangerous Cargo Endorsement (DCE) for the crew.

Tim Wilson, Principal Specialist Fuels and Emissions, LR, said: “This certification demonstrates a credible and commercially viable route for existing bunker tankers to participate in the energy transition. It sets a clear blueprint for others to follow, enabling owners to consider the possibility of adapting existing bunker tankers for sustainable fuel delivery without resorting to prohibitively expensive conversions or replacement with a chemical tanker.”

Peter Howard, Technical Director at Whitaker Tankers, added: “This certification is the result of focused determination from all involved and underlines Whitaker’s commitment to providing clients with the flexibility they need to meet their decarbonisation goals. We’re proud to lead the way in this space with Whitchampion and look forward to progressing a similar certification with LR for her sister ship Whitchallenger later this year.”

 

Photo credit: Lloyd’s Register
Published: 13 June 2025

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Alternative Fuels

China’s SDARI receives AiPs for alternative-fuelled ships including ammonia bunker vessel

CSSC’s SDARI obtained Approval in Principle (AiP) certificates from classification societies ABS, RINA and LR for four vessel designs including a 50,000 cubic metre ammonia bunkering vessel.

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China’s SDARI receives AiPs for alternative-fuelled ships including ammonia bunker vessel

China State Shipbuilding Corporation’s (CSSC) Shanghai Merchant Ship Design and Research Institute (SDARI) recently obtained Approval in Principle (AiP) certificates from several classification societies for four vessel designs. 

Among the four is a 50,000 cubic metre (m3) ammonia bunkering vessel, which received AiP certificate from American Bureau of Shipping (ABS). 

It integrates liquid ammonia transportation and bunkering functions and can meet the long-distance transportation needs of liquefied gas goods such as liquefied petroleum gas (LPG) and liquid ammonia. 

The ship is equipped with three IMO Type A independent liquid cargo tanks, and uses zero-carbon ammonia fuel to drive the main engine and generator, meeting the IMO greenhouse gas emission reduction strategy and actively responding to the latest greenhouse gas intensity (GFI) requirements of the 83rd meeting of the IMO Marine Environment Protection Committee (MEPC 83). 

The entire ship is equipped with two independent 1,000 m3 deck liquid ammonia storage tanks, taking into account the ammonia fuel endurance requirements under multi-cargo loading and unloading, significantly improving operational economy and flexibility. 

In response to the needs of bunkering operations, it is specially equipped with a retractable bow thruster, side thruster and adjustable propellers to meet ABS’ DPS-1 notation and adapt to the complex port environment of bunkering operations. 

China’s SDARI receives AiPs for alternative-fuelled ships including ammonia bunker vessel

Meanwhile, a dual-fuel LNG/hydrogen-powered Ultramax bulker design and a 30,000 GT Roll-On/Roll-Off Passenger (ROPAX) ship designed to sail in the Mediterranean Sea received AiP certificates from RINA. 

SDARI also received AiP from Lloyd’s Register (LR) for a 113,000 dwt ammonia dual-fuel liquid cargo ship. The optimised propulsion system, specially configured with an ammonia dual-fuel power system and a wind-assisted propulsion system, is expected to save more than 10% energy, especially at low speeds. 

 

Photo credit: Shanghai Merchant Ship Design and Research Institute
Published: 12 June, 2025

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