Business

Integr8 Fuels: Advance bunker planning needed due to tighter HSFO availability

As scrubber-installed fleets continue to grow, reports of HSFO non-availability have started to appear; shipowners are advised to plan bunkering ops in advance to avoid procurement issues.

Published

6 years ago

April 7, 2020

Admin

[vc_row][vc_column][vc_column_text]Integr8 Fuels, the bunker trading and brokerage arm of Navig8, on Monday (6 April) published an analysis on the unexpected tightness of HFSO supply and some practical solutions to navigate the situation; it was written by Senior Research Analyst, Anton Shamray:

In the run-up to IMO2020 doubts existed whether there would be enough VLSFO available to meet demand, while HSFO was thought to remain in abundance. The reality however is very different, with the corona virus putting a cap on bunker demand, the growing oversupply of VLSFO and a relative HSFO tightness and availability concerns have become the new reality.

As the scrubber fleet continued to grow, reports of HSFO non-availability started to appear. With certain regions and ports currently not offering HSFO, owners and operators of scrubber tonnage may experience difficulty procuring HSFO and need to shift to more advance bunker planning.

Scrubber vessels, HSFO supply and demand

In the main shipping sectors, including tanker, bulk, gas, container and cruise, the share of scrubber vessels is relatively low by number, at 4%, and slightly higher by deadweight, at 10% – meaning fewer stems but larger volumes per stem. Due to this, many suppliers prefer not to stock HSFO for now.

However, as seen on Figure 1 scrubber vessel operations are spread globally and, while a share of HSFO demand is linked to term contracts, the majority of scrubber vessels procure bunker fuel on the spot market.

The mismatch between the global operation of the scrubber fleet and the ports with HSFO supply has created difficulties for the owners and operators of scrubber tonnage when it comes to HSFO procurement.

Figure 2 shows the global number of HSFO spot stems in Feb-Mar 2019, which cover most ports, hubs and regions.

Looking at the past couple of months (Figure 3), the picture is very different with South America, West Africa, Black Sea, India, Australia and New Zealand are among the regions with little or no HSFO availability.

Even with HSFO available in major hubs, the number of suppliers have decreased sharply. In some locations out of many suppliers present, only one or two carry HSFO stock and delivery slots can often get booked quickly.

At the moment, one half of the scrubber orderbook has been installed. Assuming most of the remaining orderbook is put into service (and currently it is hard to see many new orders placed), it will likely still not be enough to change the position of HSFO in the global bunker market so the expectation is for continuing difficulties with sourcing HSFO, at least in the near future.

Therefore, owners and operators of the scrubber fitted tonnage should plan HSFO bunkering well in advance where possible and we recommend the following based on the recent HSFO buying experience:

Availability and competitive pricing are more likely for enquiries with lead times of 7 or more days
Enquiring for HSFO not only in hubs but also smaller ports, which could at times be more competitive on pricing and have better availability
As the VLSFO/HSFO delivered spread has narrowed and on certain occasions gone close to single digit figures, it is worth checking both VLSFO and HSFO prices adjusting for the difference in calorific value and additional scrubber consumption when deciding which grade to buy.

Overall, current HSFO availability and pricing have clearly proved many forecasts wrong. In this situation owners and operators of scrubber tonnage can clearly benefit from more advance planning and access to transparent pricing and availability information.

Source: Integr8 Fuels
Published: 7 April, 2020[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_gallery type=”image_grid” images=”9579,9580″ title=”Additional Information”][/vc_column][/vc_row]

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

9 hours ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

9 hours ago

July 21, 2026

Admin

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

Published

9 hours ago

July 21, 2026

Admin

PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post.

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024.

Photo credit: Pacific International Lines
Published: 21 July, 2026