Business

KPI OceanConnect: Can bunkering overcome 2020 challenges and grow in 2021?

European banks stepping back from the bunker industry is a cause for concern, and conversations are now about when will more industry consolidation emerge, it said.

Published

6 years ago

October 27, 2020

Admin

Charley Davies, Vice President of Sales at KPI OceanConnect, a global independent marine energy service and solutions provider, on Thursday (27 October) gave a speech at the IHS Markit / Opis Marine Fuels Roundtable.

He observed in the closing months of 2019, shipowners and suppliers were beginning to transition from High Sulphur to Low Sulphur fuel and the primary concerns were about Quality, Availability, and Pricing.

Davies noted concerns at the time were: Would there be more quality claims? Would all ports have sufficient supply of the new VLSFO? And how would the prices come in at the start of the new year?

Scrubbers were being installed for various fleets as the spread between the High and Low Sulphur looked to be significant while owners were weighing the return on investment on future installations, he added.

In December Covid-19 began to impact the oil markets in a limited way with China reporting lockdowns. The company noted that markets, which were already anticipating the possibility of lower GDP for the coming year, consequently began to sell crude oil.

However, shipping moved forward as did Western economies until March when it became clear the virus had spread significantly to the rest of the world, he said.

As a result, Davies said it has seen a noticeable decline in overall demand for the bunker market since then with an unclear future ahead. Some sectors have fared better than others, and some, like the cruise lines are for the most part not operating.

Threat Levels

During the depths of the crisis, Davies added numerous oil companies began to either eliminate or greatly reduce industry credit due to concerns about the financial wellbeing of the shipping community and bunker traders.

He observed that this has been to some extent restored, but this highlights the sharp change of opinion of only 18 months ago when they were looking forward to selling VLSFO into the market and reinvigorating their marine groups with higher margin products.

Even with relatively low prices we see today, credit and counterparty risk remain a contentious issue and Davies expects this to continue as the world’s economies struggle to recover from the lockdowns.

He adds that it is also an unfortunate reality that the industry has seen one large player depart the supply scene under less than favourable circumstances.

Others have curtailed their operations, and there have been countless rumours of financial difficulties about other suppliers. Recent announcements that European banks are stepping back from the bunker industry is a further cause for concern, and the conversations are now about how long it will be until more industry consolidation emerges, said Davies

He noted that the KPI BridgeOil and OceanConnect merger is a positive sign of the times..

“Together we’ve created the largest intermediary party in the United States, and one of the very few global organizations that has solid financial backing and liquidity, as well as strong corporate governance, operating procedures and that does not pledge receivables to third parties,” he concludes.

“Shipping’s volatile and dynamic landscape isn’t going to become much calmer in the next year, and with the IMO’s decarbonisation guidelines for 2030 and 2050 rapidly approaching it’s not going to be smooth sailing for many years.

“It will be those with access to accurate and timely information that will be better able to read the market and ride out the storm.”

Photo credit: KPI OceanConnect
Published: 28 October, 2020

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.

Published

12 hours ago

July 21, 2026

Admin

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.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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.

Published

12 hours ago

July 21, 2026

Admin

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.

Photo credit: Drew Beamer
Published: 21 July, 2026

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.

Published

12 hours ago

July 21, 2026

Admin

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