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INSIGHT: Off-spec issues reveal ‘missing piece’ of Singapore bunker supply chain

Sources explain to Manifold Times the cause of recent supply issues at Singapore port and, more importantly, suggestions to fix this.

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Singapore-based bunker suppliers have been hit by off-spec issues of marine fuel at the port causing cargo loading congestion at terminals. This could be fixed through increased regulation of the entire bunker supply chain, say players familiar with the matter.

The supply chain for bunkering at Singapore port largely depends on arbitrage fuel imported by oil cargo traders/producers which store the product at oil terminals. This cargo will in turn be loaded by bunker suppliers on their bunker tanker at appointed oil storage terminals for deliveries to receiving client vessels.

However, a recent increase of off-spec bunker fuel cases in Singapore have caused players to question the traceability of oil material. Contracts between different terminals and suppliers seen by Manifold Times have indicated fuel quality and quantity measurements by terminals to be final and binding.

The documents suggest terminals having no obligation to attend to off-spec fuel cases after loading cargo onto a bunker tanker.
 
“Legally, the terminals have a ‘get out of jail free’ card and it seems that the traceability of off-spec bunker fuel stops at the bunker tanker,” shares a source adding “it is a ‘take-it-or-leave-it’ situation as bunker suppliers still need the cargo to do business.”

“Bunker suppliers in Singapore typically rely on the Certificate of Quality (COQ) given by the terminal or cargo trader/owner to deliver the bunkers to receiving vessels. However, if there is a problem with the fuel the vessels will come back to suppliers and make a claim against them.

“Suppliers will retest the sample whose seal numbers are indicated on the BDN to ascertain the issue; if it is true they have to arrange for either debunkering, use a fuel additive to make the product compliant, come to a commercial settlement, or report the matter to the Maritime and Port Authority of Singapore (MPA) as a last resort.

"Bunker suppliers don't do blending; they just take the product from terminals and transport bunkers to the receiving ship. What terminals give, suppliers take. We are always on the losing end during off-spec cases."

Meanwhile, an operator in the bunkering industry notes the need for more transparent fuel sampling processes at terminals due to an alleged reluctance by terminals to openly share technical information.

“Terminals say they allow suppliers to witness shore tank sampling, but permission granted is in question. Also, it seems terminals do not reveal the distance from the jetty to shore tank,” he notes, while adding some terminals simply stick to taking samples from their shore tank, instead of the bunker manifold at the jetty or bunker tanker.

According to the operator, the pipeline between a shore tank and jetty can contain between 400 to 800 metric tonnes (mt) of fuel depending on size and distance.

“The amount of oil left in the pipeline represents a significant quantity for a bunker tanker which loads only a few thousand metric tonnes when compared to larger oil tankers; it is also the reason why bunker tankers are more sensitive to leftover fuel (from the previous loading) and need to know more technical details.”

Policies such as TR48, SS600, and SS524, also known as the Standard for Quality Management for Bunker Supply Chain (QMBS), introduced by the Singapore bunkering community further do not protect local physical suppliers of marine fuel from the unregulated oil storage terminal sector.

SS524 talks about quality supply chain so effectively this should also involve onshore oil storage terminal; if SS524 was stretched to the shore terminal sector these off-spec bunker fuel cases may not occur,” he says.

“Shipowners, as bunker buyers, don’t care where the fuel source is from and go after suppliers during an off-spec situation; the MPA, which licenses bunker suppliers, also go after suppliers as well as they can’t go after the oil terminals because they cannot regulate terminals or cargo players.

“If SS524 included the terminals sector, the bunkering industry can at least obtain proper sampling from the loading manifold near the bunker tanker where oil terminal rep and crew can witness. Today, most of the loading sample given to bunker tankers are not witnessed by crew. This is a big problem and challenge.”

The off-spec issues, meanwhile, has left certain Singapore oil terminals not being able to offer compliant cargoes. This has led to bunker suppliers contracted to the non-operating facilities heading to other oil terminals to load cargoes, creating a chain effect leading to terminal congestion.

A survey conducted by Manifold Times found at least half a dozen off-spec bunker cases suffered by Singapore suppliers due to either cat fines or low flash point parameters. The total volume of off-spec fuel was estimated to be at least 20,000 mt.

"This ultimately puts Singapore at risk and a disadvantage because the quality of bunkers coming from the state country is questionable,” says a respondent to the survey.

“We are approaching 2020 and most of the low sulphur fuel oil (LSFO) are blended products; so how are we going to assure the shipping industry that this problem will not come to existence come 2020?" 

Published: 26 April, 2018
 

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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