Business

Integr8 Fuels publishes its first Bunker Quality Trends Report

Fuel with the highest incidence of off specification continues to be VLSFO at 1.7%, followed by HSFO at 1.2% and MGO at 1.0%, according to the 2022 report.

Published

3 years ago

September 15, 2022

Admin

Integr8 Fuels, the bunker trading and brokerage arm of Navig8, on Wednesday (14 September) shared with Manifold Times its first Bunker Quality Trends where it examines and compares likelihood of off specification issues across all commercial grades of bunkers and key ports. An excerpt of the report is as follows:

This is the first Integr8 Fuels Bunker Quality Trends Report covering the last six months of supplies globally, where we dissect and compare the likelihood of off specification issues across all commercial grades of bunkers and key ports. Using data from approximately 35,000 deliveries, we will also assess fuel quality trends using our own Integr8 Quality Index which scores the proximity (or otherwise) of individual parameters within each sample to the relevant Table 1 or Table 2 specification limits within ISO 8217. We will also consider the availability of fuels in general, what specifications are being guaranteed, and the potential for hidden losses which must never be ignored when purchasing given the current commercial backdrop.

How likely are we to be faced with an off specification situation?

The last 180 days owners’ analysis available to Integr8 Fuels has highlighted that you are most likely to have an off specification issue (Note 1) with High Sulphur Fuel Oil (HSFO) followed by Very Low Sulphur Fuel Oil (VLSFO) and then Marine Gas Oil (MGO). (Fig. 1)

Integr8 Fuels publishes first Bunker Quality Trends Report

What is the likelihood of receiving non-compliant or critically off-spec bunkers?

It is important, however, to consider the context of the off-specification incidents. To do this it is essential to consider the likelihood of Marpol (Sulphur) or SOLAS (Flash Point) compliance and the likelihood of Critical Off Specification Incidents such as Cat-Fines, Total Sediment, Used Lubricating Oil, Sodium and Ash Content (High Risk) against routine and easily rectifiable off specification issues classified “low risk” such as high viscosity in HSFO.

Purely on likelihood of an off specification occurrence we are more likely to have one with HSFO than VLSFO or MGO however at least double these are considered low risk.

Turning our attention to compliance Low and Very Low Sulphur Fuels, these fare far worse with us being approximately three times more likely to have a Sulphur or Flash Point off Spec incident with VLSFO and MGO, than HSFO, which are only found to be non-compliant in three deliveries per thousand.

Critical off specification issues such as Metals and Sediment are seen to be just as likely in HSFO as VLSFO but are very unlikely in Marine Gas Oils.

Finally, when we combine both compliance and high risk off specifications, the fuel with the highest incidence of off specification continues to be VLSFO at 1.7%, followed by HSFO at 1.2% and MGO at 1.0%. There are many nuances, from geographical to port-to-port and even supplier-to-supplier. It therefore remains essential to consider these when buying bunkers and we will address some of the challenges later in the paper.

Availabilty of Products

Unsurprisingly, Marine Gas Oil is the most available product (567 ports) given the ability to substitute and supply higher quality inland or automotive grades and the ease of logistics to supply what are quite often small quantities.

VLSFO is also seen to be readily available across all continents but at 17% fewer ports (463). This is because of larger quantities being ordered and the storage and barges needed to support these supplies in general.

High Sulphur Fuel Oil is the only product which is not readily available with only 187 ports listed, as of August 2022 (Fig. 2). HSFO availability is concentrated around bunkering hubs and geographically key areas likely to receive passing trade from Very Large Crude Carriers (VLCC) and / or other scrubber fitted sectors. It is important, therefore, to plan bunkering carefully for HSFO and equally consider the type of scrubber fitted to the vessel and any local limitations in forthcoming voyages that may require a fuel switch to Low Sulphur Marine Gas Oil (LSMGO) for example.

Availability of Grades

The fact that four ISO 8217 grades are still being requested remains one of the greatest challenges for the industry to address. Which other industry would even allow a fuel to be supplied using a specification that is obsolete, twice since revised, and 17 years old?

Indeed, during the period assessed for the report, 11.6% of all fuels supplied by Integr8 Fuels were still only guaranteed to 2005 specifications. Drilling into this further, it can be seen in the charts below that this is predominantly a distillate issue, with 16% of these fuels being still sold as 2005 (Fig 3) compared to only 2% of residual fuels. (Fig. 4)

It is positive news that at least for residual fuels we are seeing 2005 specifications becoming virtually obsolete probably because of two main drivers. Firstly, fewer customers are now requesting 2005 specifications given the added protection afforded for critical parameters like Catalyst Fines (Aluminium and Silicon ) and Sodium with 2010 (or later) specifications, and secondly, suppliers have in general moved away from 2005 specifications because of their position being more problematic when faced with the inevitable notice relating to Clause 5 or chemicals and added substances.

The same, however, cannot be said for distillate fuels with almost a fifth of fuels still being sold to this 17-year-old specification, the supply of which is particularly prevalent in the Indian subcontinent with pockets noted elsewhere, one such area being the eastern seaboard of the United States.

It is therefore important to consider what issues may arise because of only obtaining 2005 specification and where you may face this issue.

Firstly, 2005 specifications offer no guarantee for Lubricity, Oxidation Stability, Acid number or Hydrogen Sulphide and whilst it is rare that issues arise, the added cover for a fuel which may have aged afforded by the Oxidation stability parameter is an important one.

Of greater concern is the fact that a supplier is afforded more scope with regard minimum Viscosity guarantees which allows a minimum level of 1.5cSt rather than 2.0cSt for 2005 compared to 2010 specs and beyond. Such low levels can be particularly problematic to vessels which do not have the ability to cool the fuel given the need to inject the fuel at a minimum of 2cSt stipulated by most engine manufacturers and the possibility of fuel pump issues or even loss of propulsion as a result.

Cross referencing back to the eastern seaboard we note that around 25 percent of all samples testing below 2.0cSt in the last 180 days, this in a location where we may have no guarantee to protect us from this issue (Fig 5). Indeed in the port of Norfolk (Vi.) where only 2005 specifications are available, 65% of all samples have recently tested under 2cSt for Viscosity. Therefore, if bunkering in the USA and particularly the eastern seaboard it is highly recommended to purchase 2010 specification or higher.

Note: Manifold Times will be publishing part II of the Integr8 Bunker Quality Trends Report tomorrow.

Photo credit: Integr8 Fuels
Published: 15 September, 2022

Alternative Fuels

SMW 2025: Singapore to launch new standard for electric harbour craft this week

MPA and Enterprise Singapore will launch the Technical Reference 136 to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft, says minister.

Published

7 hours ago

March 24, 2025

Admin

SMW 2025: Singapore to launch new standard for electric harbour craft this week

Minister of State for Transport Murali Pillai on Monday (24 March) said Singapore will launch a new standard for electric harbour crafts this week as part of Maritime and Port Authority of Singapore’s (MPA) efforts in facilitating decarbonisation for domestic harbour craft to achieve the republic’s national target of net-zero emissions by 2050.

“MPA and Enterprise Singapore will launch the new Technical Reference 136 this week to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft,” Murali said during his speech at the opening ceremony of the Singapore Maritime Week 2025 (SMW 2025).

“This will enhance the safety and interoperability of electric harbour craft charging infrastructure.”

This is one of the initiatives MPA is undertaking to prepare for the bunkering of alternative marine fuels and decarbonising Singapore’s domestic maritime sector.

The minister said Singapore is taking steps to support the use of various fuels by the industry and position Singapore as a leading bunkering hub for alternative fuels.

“Over the past two years, we have supported trials of alternative fuels such as ammonia and methanol. These have contributed to the development of new technical references and IMO guidelines to enable the safe and efficient use of these marine fuels,” he said.

“MPA and Enterprise Singapore published the new Technical Reference 129 on Methanol Bunkering earlier this month, and we plan to launch a new standard for ammonia bunkering later this year.”

He added MPA has also recently allowed licensed bunker tankers to carry and deliver biofuels up to B30.

“Pilots for up to B100 are ongoing, and we welcome bunker suppliers to engage in these pilots,” he said.

At the opening ceremony of SMW 2025, Senior Minister Lee Hsien Loong, together with Murali, also launched Singapore’s first Maritime Digital Twin, an advanced simulation model developed by MPA in partnership with the Government Technology Agency of Singapore (GovTech) that integrates real-time data to enhance decision-making and improve management of maritime operations in Singapore waters.

Murali said the digital twin will integrate data from different sources and provide a platform for information sharing. This will enable the development of tools to optimise port efficiency and reliability above, at and below the sea surface.

“For example, the digital twin will enable scenario simulations and dispersion modelling, which can inform standard operating procedures for the safe bunkering of alternative fuels such as methanol and ammonia,” he said.

The minister added MPA will roll out the digital twin to pilot users later this year, before progressive implementation for the wider industry.

“In future, we can extend this to the global maritime ecosystem through our Green and Digital Shipping Corridors with other countries and ports,” he said.

Photo credit: Maritime and Port Authority of SingaporePublished: 24 March, 2025

Alternative Fuels

TFG Marine welcomes first of four ‘L’ series IMO type II bunkering tankers of Consort Bunkers

TFG Marine to operate Consort Bunkers’ bunkering tanker “Pearl Lavender”, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, at Singapore port from April onwards.

Published

7 hours ago

March 24, 2025

Admin

TFG Marine welcomes first of four 'L' series IMO type II bunkering tankers of Consort Bunkers

Global marine fuel supply and procurement firm TFG Marine on Friday (21 March) said it attended the delivery ceremony of bunker tanker Pearl Lavender at China Merchants Jinling shipyard in Nanjing.

The IMO type II chemical bunkering tanker newbuilding is amongst others under long-term time charter from Singapore-based bunker supplier and logistics services provider Consort Bunkers Pte Ltd (Consort).

"This state of the art vessel, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, will be operational at the Port of Singapore from April 2025, further advancing our product offering to our client base in the APAC region," said TFG Marine.

"As the first of four barges in this order, this investment builds on our commitment to low-carbon fuel bunkering infrastructure, reinforcing our vision for a multi-fuel future.

"With methanol, biofuels, ammonia, and other alternative fuels playing an increasingly significant role alongside traditional marine fuels, we continue to support the industry's transition towards cleaner energy solutions."

Manifold Times previously reported that Consort first contracted six ‘L’ series 6,500 dwt IMO Type II bunker tankers with China Merchants Jinling Shipyard (Nanjing) Co., Ltd. in April 2023.

The ‘L’ series of bunker tanker newbuildings gained recognition from the China Association of The National Shipbuilding Industry (CANSI) as amongst the Chinese shipbuilding sector’s top 10 innovative vessels for 2024.

Last year, TFG Marine announced the signing of a long-term time charter agreement with Singapore-based bunker supplier and logistics services provider Consort Bunkers for four newbuild bunker tankers.

Photo credit: TFG Marine
Published: 24 March, 2025

Sanctions

US OFAC sanctions first Chinese teapot refinery and oil tankers over Iranian links

Shandong Shouguang Luqing Petrochemical and its chief executive officer were added to OFAC’s sanctions list for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil.

Published

7 hours ago

March 24, 2025

Admin

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Thursday (20 March) sanctioned a “teapot” oil refinery and its chief executive officer for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil, including from vessels linked to Ansarallah, commonly known as the Houthis, and the Iranian Ministry of Defense of Armed Forces Logistics (MODAFL).

Shandong Shouguang Luqing Petrochemical Co., Ltd (Luqing Petrochemical), a teapot refinery in Shandong Province, has purchased millions of barrels of Iranian oil worth approximately half a billion dollars.

Luqing Petrochemical received Iranian oil transported by shadow fleet vessels, some of which have been sanctioned for their role transporting Iranian petroleum linked to the Houthis and MODAFL, including the MEHLE (IMO: 9191711) and the KOHANA (IMO: 9254082). In mid-2022, Luqing Petrochemical was identified as a buyer of Iranian oil associated with the Iranian military and Iranian military forces.

Luqing Petrochemical is being designated pursuant to E.O. 13902 for operating in the petroleum sector of the Iranian economy. PRC national Wang Xueqing serves as the chief executive officer and legal representative of Luqing Petrochemical, and is being concurrently designated pursuant to E.O. 13902 for having acted or purported to act for or on behalf of, directly or indirectly, Luqing Petrochemical.

“Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror,” said Secretary of the Treasury Scott Bessent.

“The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program.”

OFAC additionally imposed sanctions on 19 entities and vessels responsible for shipping millions of barrels of Iranian oil, comprising part of Iran’s “shadow fleet” of tankers supplying teapot refineries like Luqing Petrochemical.

Iranian crude oil is transported to teapot refineries via a “shadow fleet” of vessels that usually engage in deceptive shipping practices, including automatic identification system (AIS) manipulation.

OFAC sanctioned eight vessels that constitute part of this fleet, including the Comoros-flagged NATALINA 7 (IMO: 9310147), Panama-flagged CATALINA 7 (IMO: 9310159), AURORA RILEY (IMO: 9181649), and VIOLA (IMO: 9254915), San Marino-flagged MONTROSE (IMO: 9281695), Barbados-flagged VOLANS (IMO: 9422988) and BRAVA LAKE (IMO: 9232876), and the currently unflagged TITAN (IMO: 9293741).