Business

Low supply of LSFO for bunkering to halt shipping operations on east coast of India

Monthly estimated demand of 30,000 mt of LSFO for coastal ships plying on India’s eastern coastal route are not met, say local bunker suppliers.

Published

7 years ago

January 14, 2020

Admin

The Indian Government on Thursday (9 January) called for a meeting with ship owners, PSU oil refiners and the Director General of shipping to discuss the looming crisis of coastal shipping operations along India’s eastern coast coming to a halt due to lack of supply of low sulphur fuel oil (LSFO), according to The Hindu Business Line.

“There is virtually no supply of low sulphur fuel oil and all the coastal ships including the feeder container vessels plying between Indian ports on the east coast will come to a standstill from this week as soon as they exhaust whatever little stock they had,” said an unnamed shipping company executive.

The Indian Government on 9 January advised ship operators to temporarily use diesel.

“Each coastal vessel typically consumes as much as 25 tons of bunker a day. Already from normal fuel oil, which was costing ₹30,000 a ton, we had to move to low sulphur fuel oil priced at ₹55,000 a ton and that also is not available and now they want us to use ₹87,000 a ton diesel oil,” he added.

He also raised concerns regarding technical issues of using diesel oil on ship engines.

The monthly estimated demand of 30,000 mt of LSFO for coastal ships plying on India’s eastern coastal route are not met, say local bunker suppliers.

The blame has been placed on local oil refiners for not preparing adequate supply of LSFO before the IMO 2020’s January 1 deadline, said a bunker supplier.

“The first lot of the product were sold by refiners such as Indian Oil Corporation and Hindustan Petroleum Corporation in the open market,” he added.

“Then when the DG Shipping pushed them to supply to coastal ships, they made some priority rules that gave first preference to supply to ships they have chartered to transport their own crude and petroleum products, followed by coastal vessels/Indian flag ships and then to other vessels. This prioritisation should have been done prior to start of sales.”

“The refiners are only catering to their own use vessels. So, there is not much of product they can allot to coastal ships on the East coast,” he concluded.

The LSFO supply situation is relatively better for coastal ships plying on India’s western coast due to availability in Kandla and Cochin.

The crisis on Indian eastern coast will not be affecting ships plying in international waters with bunker fuel availability in stop overs in Singapore, Colombo or the Gulf region.

However, the crisis will affect India’s efforts to promote container transhipment business from Indian ports.

If the crisis prolongs it will hamper feeder shipping services, making exporters and importers shift back to Colombo and Singapore for their transhipment needs.

“Then, it will be very difficult to bring them back to India. After all the efforts we have made to bring them here, we are going to lose transhipment business again to foreign ports,” said the shipping company executive.

Photo credit: Unsplash / Raj Rana
Published: 14 January, 2020

Winding up

Singapore: Notice of intended dividend issued for Xihe Holdings’ subsidiaries

Creditors will need to produce proofs of debt to liquidators of Da Xin Tankers and Nan Chiau Maritime by 5 August, according to Government Gazette notice.

Published

12 hours ago

July 23, 2026

Admin

Two notices to declare the intended dividend of Xihe Holdings’ subsidiaries to their creditors have been posted on the Government Gazette on Wednesday (22 July).

The subsidiaries are Da Xin Tankers Pte Ltd and Nan Chiau Maritime Pte Ltd.

The following are the details of the notices of intended dividend:

Name of Company : Da Xin Tankers (Pte) Ltd (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No. : 198400895W
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Name of Company : Nan Chiau Maritime (Pte.) Ltd. (In Creditors’ Voluntary Liquidation)
Unique Entity No. / Registration No.: 200814296Z
Address of Registered Office : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960
Last Day for Receiving Proofs : 5 August 2026 at 5:00 pm by email to [email protected]
Name of Liquidators : Paresh Tribhovan Jotangia and Ho May Kee
Address : c/o Grant Thornton Singapore Private Limited, 8 Marina View, #40-04/05 Asia Square Tower 1, Singapore 018960

Photo credit: steve pb from Pixabay
Published: 23 July, 2026

Biofuel

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

Company says it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply.

Published

12 hours ago

July 23, 2026

Admin

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

South Korean petroleum and refining company S-Oil on Wednesday (22 July) said it has started supplying B30 very low sulphur fuel oil (VLSFO), as the company seeks to support shipping’s decarbonisation efforts and growing demand for lower-carbon bunker fuels.

The company said its B30 VLSFO contains 30% sustainable biofuel blended with conventional VLSFO and can be used without requiring modifications to existing vessels, enabling shipowners to comply more readily with emissions regulations from the International Maritime Organization (IMO) and the European Union (EU).

S-Oil said it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply. The system combines VLSFO produced at its Onsan refinery with biofuel production facilities and storage infrastructure in the Ulsan region, allowing the entire process to be carried out within a single logistics hub.

According to the company, the integrated supply chain reduces transportation requirements during production while improving supply efficiency and reliability.

S-Oil also highlighted Ulsan Port as a strategic location for marine biofuel supply, noting the port has strong demand for bio-bunker fuels, particularly from car carriers, enabling prompt and stable deliveries to key customers.

An S-Oil official stated: “In the bio-marine fuel market, not only product quality but also securing a stable supply of raw materials and an efficient supply system are important competitive advantages.

“Based on our existing bunkering business capabilities and the excellent supply infrastructure in the Onsan area, we plan to supply stable and competitive low-carbon fuel.”

Photo credit: S-Oil
Published: 23 July, 2026

Decarbonisation

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

Both will explore solutions spanning emissions measurement and verification, a digital Book-and-Claim framework, and a joint maritime-land inset token package.

Published

12 hours ago

July 23, 2026

Admin

Yang Ming and PSA to develop integrated sea-land decarbonisation solutions

PSA International (PSA) on Monday (20 July) said it has signed a Memorandum of Understanding (MoU) with Yang Ming Marine Transport Corporation (Yang Ming) to jointly accelerate the adoption of low-carbon solutions across the maritime value chain.

Beyond emissions measurement and verification, the collaboration will focus on a digital Book-and-Claim framework and a joint maritime-land based inset token package.

“This synergy provides cargo stakeholders with a transparent and accountable sea-land pathway to achieve their decarbonisation targets,” PSA said on its website.

Yang Ming launched the green transport service, EcoSea+. This initiative integrates Yang Ming’s low-carbon navigation capabilities to empower customers with a flexible and transparent strategy to effectively reduce their Scope 3 transportation emissions. By joining forces with PSA, Yang Ming is able to expand the impact of these sustainability actions beyond the ocean.

Building on its position as a global port operator, PSA advances its Node to Network strategy through integrated port and supply chain capabilities that enable a green network of terminal and landside operations to reduce end-to-end supply chain emissions.

The agreement was officially signed by Mr Ivan Chiang, Chief Logistics Officer & Senior Vice President of Yang Ming, and Mr Eddy Ng, Group Head of Operations, Technology and Sustainability of PSA International.

Mr Ong Kim Pong, PSA International Group CEO, said, “As responsible stewards of tomorrow, PSA is committed to delivering sustainable impact across the global port and supply chain ecosystem.

“Tackling the challenges arising from climate change will require the collective efforts of all players in the maritime supply chain sector. We are excited to partner Yang Ming on the decarbonisation of global supply chains and support the transition towards a more sustainable global economy.”

Photo credit: PSA International
Published: 23 July, 2026