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International Union of Marine Insurance: IMO 2020 – 100 days amidst the Pandemic

Issues faced by shipowners coming into 2020 have now been overshadowed by the pandemic but challenges remain on the full implementation of IMO 2020.
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International Union of Marine Insurance (IUMI), in its June 2020 newsletter published an update on the maritime industry’s compliance with the IMO 2020 sulphur cap in light of the Covid-19 pandemic; it was written by Rama Chandran, Head of Marine for Singapore and Head of Hull & Marine Liability for Asia, QBE Insurance (Singapore) Pte Ltd and IUMI Ocean Hull Committee Chair:

What was on the minds of all shipowners coming into 2020 has now been clearly overshadowed by the pandemic and its significant impact. However, challenges remain on the full implementations of IMO’s 2020 sulphur cap.

The next key regulatory milestone is the 2030 regulations where a reduction of 40% of carbon emissions is the current objective. It is widely expected that this threshold will be increased.

But for now, let’s look at where we are on the IMO 2020 implementation 100 days since coming into effect.

In the first quarter of 2020, the Maritime Port Authority of Singapore (MPA) reported that most ships calling at the ports of Singapore have complied with the regulation.

It was further reported that based on the pre-arrival notification submitted to MPA, 96% of the ships calling at Singapore used compliant fuel. This excludes ships installed with open loop scrubbers that switch to using compliant fuel upon arriving at Singapore as the use of open loop scrubbers is prohibited in the port of Singapore (as well as in many other ports).

During this period, 326 Port State inspection and Flag State inspections were carried in the port of Singapore. Out of these, 12 ships were not fitted with scrubbers and had fuels marginally exceeding the sulphur limit. This was reported as likely due to remnant residues of high sulphur fuel in the fuel tanks and piping. It is expected in time, the fuel tanks and piping would be sufficiently flushed with the continued use of compliant fuel.

Among the small number of Singapore registered vessels fitted with scrubbers, 31 reports of scrubber malfunctions were noted as of 29 Feb 2020.

There were some incidents related to automation, corrosion, safety and monitoring on some of the scrubber incidents to date.

DNV GL reported close to 4,000 ships being fitted with scrubbers and more were scheduled to do so during the year due to the price difference between heavy fuel oil (HFO) and low sulphur fuel oil (LSFO). This spread has since reduced to significantly below USD $100 per metric tonne. This figure was generally used by the scrubber manufacturers in the rationale on economic viability.

With the pandemic, the installation timeline will be pushed back significantly. It is not clear if shipowners will cancel or delay further until there is some clarity with the potential future price difference between the two grades of fuel. The other factor for consideration is the availability of the HFO post pandemic.

On a final note, we are still monitoring the impact of low sulphur fuels on engine and if there is significant increase in machinery claims in the near future.


Photo credit:  Anne Nygård on Unsplash
Published: 21 July, 2020

 

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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.

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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.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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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.

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July 21, 2026

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RESIZED Drew Beamer

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.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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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.

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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

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