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IUMI: A changing role of insurers in bunker fuel contamination cases

Singapore bunker fuel contamination has led to questions if insurers are better positioned to respond to such industry issues today than in the past, says Gard (Singapore) Pte. Ltd.

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The following article entitled ‘A changing role of insurers in bunker contamination cases’ was written by Siddharth Mahajan, Senior Loss Prevention Executive, Gard (Singapore) Pte. Ltd as part of International Union of Marine Insurance’s June 2022 newsletter:

In the first four months of 2022, several ships faced serious operational issues caused by contaminated HSFO bunkers stemmed in Singapore. The question we need to ask ourselves is, are we better positioned to respond to such issues today than in the past?

The news of contaminated bunkers in Singapore started spreading in mid-March and shortly thereafter many owners and charterers took preventive actions to ensure these bunkers did not get onboard their vessels or if already onboard, they were not consumed. The swift action taken by the Maritime and Port Authority of Singapore in this case was commendable, leading to the industry’s response being much better than during the Houston bunkers saga in 2018/19.

Alerting the industry

The swift response was in part attributable to the issue being raised industry wide in late March. Insurers, such as Gard, played an important role in keeping the industry informed through alerts and communication with stakeholders showing that the role of insurers has evolved from only managing and paying claims to also pro-actively mitigating losses.

Establishing impact and scale

When faced with such industry events, we need to establish three main parameters before considering alerting the wider industry.

First, we need to understand the nature of the problem. The case of contaminated bunkers from Singapore was unique not only because the off-spec parameters were outside the scope of traditional ISO 8217, table 2 standards, but also because chlorinated hydrocarbon compounds such as 1,2-Dichloroethane and Tetrachloroethylene had not previously been detected in bunkers in such quantities.

Second is to assess the severity potential. Initial information from some owner and charterer clients suggested that these contaminants could severely impact a vessel’s engines and machinery almost immediately after starting to consume the fuel.

Third is to anticipate the scale of the issue. We use the principles of ‘prudent overreaction’ to be able to see any industry event from best to worst case scenarios. Bunker claims registered during the Houston bunkers saga, where vessels faced challenges of somewhat similar severity, provided a good reference point along with views from experts, testing laboratories and a few industry organizations whom we had contacted.

The assessment of these parameters can sometimes be time critical. If an industry issue fits all three then the sooner this information reaches the vessel, owners and charterers, the better the industry can mitigate the adverse impacts.

Related: Gard: Bunker quality – do bunker suppliers have charterers over a barrel?
Related: Singapore: MPA investigation traces contaminated bunker fuel back to source at Port of Khor Fakkan
Related: Singapore bunker contamination different from earlier Houston cases
Related: MPA: Glencore and PetroChina supplied contaminated bunkers to about 200 ships in the Port of Singapore
Related: Singapore Shipping Association issues statement to members regarding recent contaminated HSFO bunker cases
Related: VPS provides update on bunker fuel contamination cases in Singapore
Related: Bureau Veritas answers questions on Chlorinated Compounds in HSFO from Singapore
Related: FuelTrust: Latest bunkering contamination at Singapore validates need for early warning system
Related: VPS identifies potential bunker fuel contamination crisis unfolding at Singapore
Related: Gard members and clients find chlorinated hydrocarbons in Singapore bunkers

 

Photo credit: International Union of Marine Insurance
Published: 6 June, 2022

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Biofuel

BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

Bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier “Berge Lyngor”, which was bunkered in Singapore in early May.

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

BHP and the Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (3 June) said they have blended biofuels from two distinct feedstocks—used cooking oil and waste animal fats —and introduced the lower-emissions marine fuel into a BHP-chartered bulk carrier as part of a pilot project.

The bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier Berge Lyngor, owned and operated by Berge Bulk, transporting BHP iron ore from Western Australia to China. When run on bio-blend, the vessel has the potential to reduce well-to-wake greenhouse gas emissions by approximately 79 per cent per voyage compared to sailing on very low sulphur fuel oil (VLSFO).

The vessel bunkered in Singapore in early May with a B100 bio-blend comprising 50 percent tallow-derived biodiesel, sourced and supplied by HAMR Energy, and 50 per cent used cooking oil (UCOME) supplied by Mitsui & Co Energy Trading Singapore (METS).

Mitsui also blended the fuel and Dan-Bunkering coordinated and executed the bunkering operation, which was performed by Global Energy’s barge MT Maple.

The BHP and GCMD pilot will assess how biofuels from multiple feedstocks can be blended, handled, and introduced under real-world operating conditions using existing used cooking oil bunkering infrastructure.

At the same time, insights from this pilot will help identify solutions to challenges related to fuel quality, handling, traceability, and onboard vessel performance.

Biofuels for global shipping today rely heavily on used cooking oil – a feedstock whose availability is approaching its projected limits. Biofuel from waste animal fats presents a promising option to expand the supply of lower-emissions marine fuels.

The outcomes of the pilot are expected to shed light on the practical steps to integrate biofuel blends from different feedstocks into existing supply chains. The diversity of biofuels will provide shipowners and operators with greater flexibility to optimise fuel procurement based on cost, availability, and lifecycle emissions performance.

Biofuels derived from different feedstocks can exhibit varying properties that may impact operations, including potential corrosion from oxidation, fuel system clogging caused by wax formation, which this pilot aims to assess.

The pilot will trace and verify the biofuel blend’s integrity aimed at bolstering confidence in emissions reductions reporting. The pilot will also provide insights into how robust tracing can support future marine fuel supply chains where biofuels from multiple feedstocks with varying lifecycle greenhouse gas emissions footprints are blended together.

This project is co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund (MINT).

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 3 June, 2026

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Biofuel

NYK starts one-year B100 bio bunker fuel trial on car carrier

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices.

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NYK starts one-year B100 bio bunker fuel trial on car carrier

Japanese shipping firm NYK on Tuesday (2 June) said it has commenced a one-year long-term trial involving the continuous use of 100% biofuel (B100) on an NYK-operated car carrier. 

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices. High-purity biofuels such as B100 are known to be susceptible to degradation from oxygen, light, and heat, raising concerns about the stability of such fuels during long-term use.

In this trial, the biofuel primarily comprises FAME (Fatty Acid Methyl Ester) derived from used cooking oil and similar feedstocks.

The initiative is designed to evaluate the fuel’s effects on the vessel’s equipment and verify operational safety under real-world conditions. 

Through this effort, NYK seeks to accumulate technical expertise that will support the broader use of high-purity biofuels and further accelerate efforts to reduce greenhouse gas (GHG) emissions.

NYK has been advancing the use of biofuels through various initiatives. In 2024, the company conducted a trial using biofuel blend B24 and subsequently expanded practical usage to B30. However, the company said there remains limited global experience with the long-term continuous use of B100.

“By collecting long-term operational data through this trial, NYK aims to accumulate valuable technical insights to support both the safe operation of vessels and the wider adoption of high-purity biofuels,” it said. 

 

Photo credit: NYK
Published: 3 June, 2026

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Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

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VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

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