Connect with us

Bunker Fuel

Integr8 report: Two-thirds of residual bunker fuels still sold with pre-2017 ISO specs

New ISO 8217 standards present a rare opportunity to do away with industry’s reliance on obsolete fuel specifications but noted that it will be no easy task as majority of fuels are still sold with pre-2017 specifications.

Admin

Published

on

Integr8 report: Two-thirds of residual bunker fuels still sold with pre-2017 ISO specs

Integr8 Fuels, the bunker trading and brokerage arm of Navig8, on Tuesday (11 June) announced the release of its Bunker Quality Trends Report Q1 2024, which revealed several issues including the impact of the Red Sea closure on VLSFO compliance and emerging bunker quality trends.

In the latest report, bunker quality and claims manager Chris Turner advised shipowners and bunker buyers on how they can improve their buying processes and performance. 

Analysing data from over 130 million metric tonnes of deliveries to assess fuel quality trends and challenges from region-to-region, Turner revealed the most pressing quality issues the industry is up against. 

These include:

  • Red Sea closure affecting VLSFO compliance for vessels rerouting around Africa
  • Global VLSFO compliance suffers as suppliers stretch barges to cash in on rising HSFO
  • demand, driven by increasing scrubber numbers
  • Two-thirds of fuels are still sold with obsolete (pre-2017) specifications. Can the new ISO specs finally shake up old school practices?
  • Profit margin-motivated blenders push more HSFOs over ISO limits
  • VLSFO sulphur off specs worsening in the ARA and partly driven by high- to low sulphur barge switching

Red Sea closure impact on VLSFO compliance

Geopolitical events often have a knock-on effect on fuel quality, sometimes relating to blending economics, and occasionally, also relating to the impact on barge infrastructure because of rapidly changing demand.

Since October 2023, many more vessels have been rerouting around Africa rather than travelling via the Red Sea, resulting in a significant increase in volume of HSFO demand, with a ripple effect stretching as far as Barcelona. During the same period, there has been a 30% increase in VLSFO sulphur off specification incidents in ports along the African coast and nearby Spain, which upon closer inspection, show a root cause of affected barges also carrying HSFO.

Integr8 Fuels’ analysis has identified suppliers running a similar model who are unaffected – this likely due to their infrastructure allowing double valve segregation and separate manifolds onboard the barge preventing any cross-over contamination, and/or proper management of grade changeover.

The increase in HSFO demand is also putting pressure on supply models.

Another factor is the significant increase in the number of vessels equipped with scrubbers, resulting in a far higher demand for HSFO than in recent years with data available to Integr8 suggesting approximately 100 million MT of deadweight tonnage being either delivered or retrofitted with scrubbers in 2023. This combined with the price spread which remains very appealing, and scrubber assets travelling further at higher speeds, continues to support the demand going forwards.

Suppliers of course want to meet this increased demand and in doing so place transitional temporary pressure on existing assets or could be forced into a sea change in strategy, both of which may result in the practice of storing both HSFOs and VLSFOs onboard the asset.

This is made apparent by increased sulphur off specification occurrences with the root cause being the switching of grades by certain suppliers, in ports including but not limited to Barcelona, Callao and Hong Kong.

New ISO specs

The International Organization for Standardization’s (ISO) recently launched ISO 8217:2024 standards present a rare opportunity to do away with the industry’s reliance on obsolete fuel specifications. This is no easy task as research from Integr8 shows that two-thirds of residual bunker fuels and three-quarters of distillate bunker fuels are still sold with pre-2017 specifications.

ISO 8217:2024 introduces several important amendments. Notably, it sets minimum viscosity limits across all residual grades, addressing handling issues with low-viscosity fuels. It also identifies specific chemical species linked to operational problems, such as organic chlorides, and incorporates international testing standards. The new specification prepares the industry for the growing use of biofuel blends by establishing new testing parameters for these fuels, such as FAME content and net heat of combustion.

There are however missed opportunities, namely related to de-minimis levels of organic chlorides and cold flow properties.

Suppliers may again attempt to avoid the small print on organic chlorides as they have previously done with Clause 5, which could possibly have been better addressed by incorporating a maximum limit in tables. Cold flow properties must only be reported, not guaranteed, leaving the potential need for buyers to seek additional guarantees outside ISO 8217:2024. This remains a concern as certificates of quality (where such values are reported) often lack reliability when provided at a distant time from delivery.

Despite these challenges, the ISO 8217:2024 specification represents a substantial step forward, providing the necessary framework to address many current fuel quality issues. The uptake of the 2024 specification will depend significantly on ship owners demanding these new standards be incorporated into charterparty agreements. By doing so, owners can drive the transition from outdated specifications to the latest version, paving the way for a more reliable and efficient future in marine fuel standards.

Global HSFO off specs

Global HSFO quality has worsened in the past six months. The number of off-specification HSFO samples has gone up from 3% to 3.4%, and this is significantly higher than for VLSFO (2.1%) and MGO (2.8%).

Profit-motivated blending can go some way to explain the deteriorating HSFO trend. Almost half of HSFO off specs have been blending-related and come as a result of blending close to HSFOs density and viscosity limits, Turner argues. Water content is the second most likely usual off spec suspect and has made up around a third of HSFO off specs.

But fortunately, neither density, viscosity nor most of the water off specs qualify as so-called “critical” or “high risk” off specs. They are not likely to lead to serious engine trouble or debunkerings, which can cost shipowners dearly. These off specs are typically economically motivated. Density and viscosity off specs are more common for HSFO than for VLSFO and LSMGO because they are the blending targets for HSFO, and blenders have an incentive to blend as close to those limits as possible to save money.

VLSFO sulphur off specs

Sulphur is the biggest off spec concern for VLSFO. Again, this has to do with blending as the 0.50% sulphur limit is the target that blenders have their eyes on. Blending too far from the limit can eat into your profit margins, and we have seen the average sulphur contents in VLSFOs creep up in both the ARA and Singapore in the past six months.

In Singapore, you were 2.5 times more likely get a VLSFO stem with a sulphur content of 0.51-0.53% in the past six months as you were getting one in the preceding six-month period. It is evident that blending is being optimised towards the 0.50%.

But while only 0.3% of VLSFOs test off spec for sulphur in Singapore, the ARA has seen 2% of VLSFOs testing off spec. In the ARA, “we regretfully report that we are almost twice as likely to face a sulphur off specification incident now than in the previous reporting period,” Turner wrote.

Note: The full report of Integr8 Fuels’ ‘Bunker Quality Trends Report Q1 2024’ can be downloaded here.

Related: Integr8 Fuels: Off spec issue with MGO equally likely to occur as with HSFO

 

Photo credit: Integr8 Fuels
Published: 12 June 2024

Continue Reading

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.

Admin

Published

on

By

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

Continue Reading

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.

Admin

Published

on

By

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

Continue Reading

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.

Admin

Published

on

By

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

Continue Reading
Advertisement

OUR INDUSTRY PARTNERS



Trending