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

Methanol

SMW 2025: MPA seeks methanol bunker supplier licence applications in Singapore

MPA is launching an open call for applications for methanol bunker supplier licences in the Port of Singapore to implement an end-to-end methanol supply model, says Senior Minister Amy Khor.

Admin

Published

on

By

MPA issues EOI seeking for methanol bunker fuel suppliers in Singapore

The Maritime and Port Authority of Singapore (MPA) is launching an open call for applications for methanol bunker supplier licences in the Port of Singapore, said Senior Minister of State for Transport Amy Khor on Tuesday (25 March). 

The initiative is part of Singapore’s effort to foster a competitive and innovative ecosystem to accelerate the adoption of low- or zero-carbon fuels, while collaborating with industry stakeholders to ensure their safe and effective deployment.

“To meet growing interest in methanol among shipowners, MPA is launching an open call for applications for methanol bunker supplier licences in the Port of Singapore to implement an end-to-end methanol supply model,” Khor said in her speech at the Accelerating Digitalisation and Decarbonisation Conference, as part of the Singapore Maritime Week (SMW 2025).

“This will build on the recently published Technical Reference for Methanol Bunkering, and the Standards for the Port Limit Methanol Bunker Tankers, to provide a consistent approach to ensure the safe and efficient use of methanol.”

During SMW 2024, MPA announced its regulatory framework for methanol bunkering licence was close to be finalised and would call for applications for a licence to supply methanol as a marine fuel in Singapore. 

In 2023, MPA issued an Expression of Interest (EOI) inviting parties interested in supplying methanol as a bunker fuel in the Port of Singapore. The EOI aims to gather proposals for the implementation of end-to-end methanol bunkering solutions in Singapore from 2025.

Khor also said MPA has also been collaborating closely with industry partners and the A*STAR Institute of High-Performance Computing to conduct virtual simulations of ammonia bunkering operations. 

“These simulations are critical for evaluating and mitigating the environmental and safety risks associated with ammonia bunkering operations. This methodology is also extended to other fuels such as LNG and methanol,” she said. 

In parallel, Singaporean companies such as Seatrium and PSA are exploring initiatives aimed at harnessing and utilising low-carbon energy fuels for the maritime sector.

Related: Singapore releases new standard on methanol bunkering, gears up for multi-fuel future
Related: SMW 2024: MPA receives 50 submissions for EOI to supply methanol bunker fuel in Singapore
Related: MPA issues EOI seeking for methanol bunker fuel suppliers in Singapore

 

Photo credit: Maritime and Port Authority of Singapore
Published: 25 March, 2025

Continue Reading

Alternative Fuels

SMW 2025: Singapore publishes new technical reference for charging electric harbour craft

New Technical Reference establishes the specifications and safety requirements for electric harbour craft charging and battery swap systems to support Maritime Singapore’s decarbonisation goals.

Admin

Published

on

By

RESIZED MPA stock photo, Singapore flag

The Maritime and Port Authority of Singapore (MPA) and Enterprise Singapore (EnterpriseSG), through the Singapore Standards Council (SSC), on Tuesday (25 March) have published Technical Reference (TR) 1361 to guide the development of charging infrastructure and battery swap systems for electric harbour craft (e-HC). 

This initiative supports Singapore’s efforts to decarbonise the domestic maritime sector.

TR 136 establishes the safety requirements for the e-HC charging infrastructure and battery swap systems. It includes measures to protect personnel and property from electrical and mechanical hazards during the installation and operation of the charging systems. The TR also establishes the technical requirements to promote interoperability.

TR 136 incorporates widely adopted industry standards on electric vehicle charging systems, such as the Combined Charging System. It is also aligned with local electricity supply conditions and codes such as the TR 25 Electric Vehicles Charging System, as well as international standards including the IEC 61851 on electric vehicle charging system and IEC 62840 on electric vehicle battery swap system. This ensures that service providers can readily adopt the standard.

Adopting TR 136 will strengthen users’ confidence in e-HC charging and battery swap system providers, while giving ship owners, port operators, and charger operators greater assurance in the safe operation of e-HCs. The adoption of the TR is expected to have positive spillover effects with new business opportunities in areas such as charging systems and battery technologies, and upskilling prospects for the maritime workforce.

TR 136 was developed by the Working Group (WG) on Electric Harbour Crafts Charging System, which was appointed by the Electrical and Electronic Standards Committee (EESC) under the purview of the SSC. This WG comprises government and industry stakeholders such as MPA, charging equipment and battery suppliers, e-HC manufacturers and operators, testing, inspection and certification organisations, academic experts, and institutes of higher learning. Please refer to Annex A for the list of stakeholders in the WG.

Mr Teo Eng Dih, Chief Executive, MPA, said: “TR 136 is a critical step towards developing a safe, robust, and interoperable charging infrastructure for electric harbour craft in Singapore. By setting clear safety and operational guidelines, the new standard will give industry players greater confidence in electrification and pave the way for wider e-HC adoption.”

Ms Choy Sauw Kook, Director-General (Quality & Excellence), EnterpriseSG, said: “Standards have always played an important role in enabling pathfinders to drive industry development. By providing local operators with clear guidelines on how to adopt electric charging infrastructure in a safe and reliable manner, the TR 136 will accelerate the electrification of harbour craft and, in turn, the decarbonisation of the maritime sector in Singapore. Enterprise Singapore will continue to work closely with MPA and various industry partners, to develop standards that advance the interests of the maritime industry."

Er. Lim Say Leong, Co-Convenor of the Working Group on Electric Harbour Crafts Charging System, said: “During the development of TR 136, the working group consulted widely with marine industry players as there were no international standards that could be adopted. These efforts were necessary and important to ensure that TR 136 is robust and implementable by key stakeholders in the electric harbour craft ecosystem.”

Mr Ng Bingrong, Co-Convenor of the Working Group on Electric Harbour Crafts Charging System, said: “We thank all partners who have contributed to the TR 136, and will continue to work with all relevant stakeholders to ensure the TR 136 evolves with technology and industry needs. The working group welcomes feedback from users to further improve TR 136.”

MPA and EnterpriseSG will organise a closed-door seminar on 28 March 2025 at the sidelines of Singapore Maritime Week 2025. Key representatives from MPA, the WG, and industry will present their insights and expertise through technical sharing and a panel discussion at the seminar.

As part of the broader effort to encourage adoption of e-HCs, MPA organised a socialisation event on 10 March 2025 to facilitate business matching between the wider group of potential e-HC operators, developers, charging infrastructure providers, financiers, and insurers. The event provided a platform for stakeholders to better understand the technical aspects, cost of ownership, and business model considerations associated with e-HCs.

Financing for e-HCs is available under the Enterprise Financing Scheme-Green (EFSGreen), which enables companies to better access green financing that allows them to develop their capabilities and establish a strong sustainability record. As part of this, EnterpriseSG provides risk-sharing of up to 70% to catalyse lending by seven participating financial institutions. Additionally, local banks DBS, OCBC, and UOB, through engagements with MPA, have expressed strong interest to offer financing solutions for e-HC operators and owners.

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

 

Photo credit: Maritime and Port Authority of Singapore
Published: 25 March, 2025

Continue Reading

Alternative Fuels

SMW 2025: Rotterdam, Singapore plan to conduct more bunkering trials of alternative fuels

MPA and Port of Rotterdam inked a deal to strengthen their efforts on Rotterdam-Singapore Green and Digital Shipping Corridor, which includes boosting uptake of low- and zero-emission marine fuels.

Admin

Published

on

By

Singapore-Rotterdam Green and Digital Shipping Corridor partners to implement first-mover pilot projects

The Maritime and Port Authority of Singapore (MPA) and the Port of Rotterdam on Tuesday (25 March) said they have signed a Cooperation Agreement to further strengthen their efforts on the Rotterdam-Singapore Green and Digital Shipping Corridor

This follows the success of the corridor as a driving force of maritime decarbonisation and digitalisation since its inception in 2022.

The two ports have since brought together 28 partners across the entire container shipping value chain to drive the deployment of sustainable fuels on the 15,000-kilometer shipping route and implement digital solutions for improved efficiency. 

The collective ambition is to reduce greenhouse gas emissions of large container vessels on the corridor by 20-30% by 2030, while accelerating the adoption of global standards and solutions to facilitate efficient port calls, flow of goods, and enable paperless handling.

To support the decarbonisation of shipping, the collaboration focused on testing and accelerating the adoption of sustainable fuels, with the aim of making them available, accepted and affordable for large-scale use. Emphasis will be on bio- and e-variants of ammonia, methanol, and methane, with working groups established for each fuel type.

Since 2022, several first-mover pilot projects have been carried out, including the first successful bunkering of mass-balanced liquefied bio-methane at the Port of Rotterdam. A similar trial is planned in Singapore in 2025. 

Other achievements include the completion of a Life Cycle greenhouse gas Assessment (LCA) of green ammonia as a marine fuel, and strong support for the development and implementation of the Port Readiness Framework of the International Association of Ports and Harbors (IAPH), which helps ports assess their preparedness to supply sustainable marine fuels.

In the next phase, the partners plan to conduct further studies and trials for the bunkering of bio-methane, methanol and ammonia to support their future use along the shipping corridor. They also aim to develop and mobilise financial instruments to address the cost barriers associated with using low- and near-zero emission fuels.

On the digital front, the two ports have successfully trialled the exchange of port-toport data to exchange vessel arrival and departure timestamps. In support of digital initiatives  by the IMO, this effort aims to optimise vessel arrival planning and port operations between Singapore and Rotterdam. 

Both ports have also established ship-to-shore data exchange infrastructure to enable efficient and secure submission of port clearance information. This saves time and minimises data entry errors through automated data filling. The first phase to trial the use of global standards and digital solutions began in March 2025, with an enhanced solution scheduled for testing in the second half of 2025.

Both government and industry partners are at Singapore Maritime Week to advance the discussions and work on realising the goals of the Green and Digital Shipping Corridor.

Mr Teo Eng Dih, Chief Executive of MPA, said, “The continued progress through the Singapore-Rotterdam Green and Digital Shipping Corridor is testament to the role of public private collaboration to bring decarbonisation and digitalisation initiatives from ideas to implementation.”

“We look forward to collaborating with more partners to bring impact to one of the world’s busiest shipping routes and accelerate the decarbonisation and digitalisation of the shipping industry.”

Mr Boudewijn Siemons, CEO of the Port of Rotterdam, said, “By bringing together parties across the entire value chain, the Rotterdam-Singapore Green & Digital Shipping Corridor has helped to make first, valuable steps towards the decarbonisation of international shipping while also improving efficiency of trade and setting new industry standards.”

“At the same time, we still have a lot of work ahead of us and we are looking forward to continue our work on this together with the Maritime and Port Authority of Singapore.”

Related: SMW 2024: Singapore-Rotterdam Green and Digital Shipping Corridor partners to implement first-mover pilot projects

 

Photo credit: Maritime and Port Authority of Singapore
Published: 25 March, 2025

Continue Reading
Advertisement
  • Aderco Manifold Website Advert EN
  • Consort advertisement v2
  • EMF banner 400x330 slogan
  • v4Helmsman Gif Banner 01
  • RE 05 Lighthouse GIF
  • SBF2
  • Sea Trader & Sea Splendor
  • Zhoushan Bunker

OUR INDUSTRY PARTNERS

  • HL 2022 adv v1
  • Singfar advertisement final
  • Triton Bunkering advertisement v2
  • MFT 25 01 E Marine Logo Animation
  • SEAOIL 3+5 GIF


  • Auramarine 01
  • NW Logo advertisement
  • Mokara Final
  • intrasea
  • PSP Marine logo
  • Synergy Asia Bunkering logo MT
  • 300 300
  • MFA logo v2
  • Victory Logo
  • Trillion Energy
  • Advert Shipping Manifold resized1
  • VPS 2021 advertisement
  • LabTechnic

Trending