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SCMA: Bunker players gain most when adopting SBC Terms 2022 in marine fuel supply contracts

SCMA elaborates on Singapore Bunker Claims Procedure (SBC Terms), key changes made to its
terms, its positive impact in resolving bunker disputes and how it is in the financial interest of
bunker players to adopt SBC Terms 2022.

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In an exclusive interview with Singapore-based bunkering publication Manifold Times, Ms Corina Song, Vice-chairperson of Singapore Chamber of Maritime Arbitration, recently shared more about Singapore Bunker Claims Procedure (SBC Terms) that came into force in September 2022 including:

  • the key changes made to its terms,
  • its impact in resolving bunker disputes,
  • how it has been designed by SCMA to specifically benefit the bunker industry and
  • the importance of bunker players adopting SBC Terms

MT: Tell us about the Singapore Chamber of Maritime Arbitration’s Singapore Bunker Claims Procedure (SBC Terms).

The Singapore Bunker Claims Procedure SBC Terms is a set of arbitral rules for the resolution of disputes arising out of or in connection with the sale and supply of bunker by arbitration. This includes, amongst others, disagreements over quality and/or quantity of bunker; and/or non-payment or non-delivery of bunker.

The quantum of claims in bunker disputes can sometimes be modest when compared to other shipping and international trade disputes. Moreover, the issues of fact and law are relatively simple. The SBC Terms were designed by the Singapore Chamber of Maritime Arbitration (SCMA) with these features in mind. Besides the general SCMA Rules (4th Edition, 1 January 2022) (the SCMA Rules) that is applied to all types of disputes, the bunkering industry is uniquely offered the additional option of applying the SBC Terms for an even faster and less costly process to resolve bunker disputes.

MT: When was SBC Terms 2022 launched? What’s the difference between the old SBC terms and the latest SBC Terms?

The SBC Terms 2022 is found in the Singapore Standards 600 of 2022, the Code of Practice for Bunkering for Bunker Tankers Using Tank Gauging (SS 600:2022). It came into force in September 2022 when SS 600:2022 was launched.

The previous iteration of the SBC Terms is the SBC Terms 2014, found in SS 600:2014.

The key changes made to the SBC Terms are set out below:

No requirement to send Notice of Protest or Complaint to Maritime and Port Authority of Singapore (MPA)

Where there is a dispute over the quantity of the bunker, the Notice of Protest only needs to be sent to the Singapore Shipping Association (SSA). Similarly, where there is a dispute over the quality of the bunker, the complaint only needs to be sent to SSA. There is no longer any need to send either the Notice of Protest or complaint to MPA.

Additional information required in the Notice of Arbitration

The Notice of Arbitration (NOA) now requires that the Claimant (i) specify whether the dispute concerns the quality or quantity of bunker, failure to deliver the bunker, non-payment for the bunker, or any other dispute arising from the supply of bunker; and (ii) include a formal request for arbitration as well as reference to the arbitration agreement or a reproduction of the arbitration agreement.

Expedited Arbitration and Summary Procedure

  • An arbitration conducted under the SBC Terms may proceed in two (2) ways. There is a default process, and a faster process known as ‘Summary Procedure’. SS 600:2022 now refers to the default process as ‘Expedited Arbitration’ to avoid confusion with the ‘Expedited Procedure’ in the SCMA Rules.
  • When the Summary Procedure applies, pursuant to SBC Terms 2022,
  1. the hearing will be fixed within 21 days from the day the SCMA Registrar receives the request for Summary Procedure. This gives parties more time to prepare their cases. By comparison, the SBC Terms 2014 fixes a hearing within 14 days;
  2. supporting documents and written submissions must be filed no later than 5 days before the date of the hearing. Previously, parties could file their supporting documents and written submissions 2 days before the hearing. This change gives the SCMA Registrar or Tribunal more time to review the facts and arguments.

Adducing oral evidence

Oral evidence could not be adduced in any circumstances under the SBC Terms 2014. However, under SBC Terms 2022, oral evidence can be presented at the request of the SCMA Registrar or Tribunal having conduct of the hearing. This strikes a better balance between having a fair hearing, with a better understanding of the evidence, and resolving a dispute expeditiously.

No mandatory physical hearings

Hearings under the SBC Terms 2022 can now be conducted virtually. This adopts the change in work practices during the COVID-19 pandemic. It is no longer mandatory that hearings be held at a physical venue.

Written awards for all disputes

Under SBC Terms 2014, a written award only needs to be rendered where the claim or counterclaim exceeds SGD50,000. The SBC Terms 2022 has changed the practice, requiring the SCMA Registrar or Tribunal having conduct of the arbitration to issue a written award for all disputes.

No need for security of the claim to be lodged with SSA

The SBC Terms 2022 no longer provides that security for the claim may be lodged with SSA. This simplifies proceedings and reduces costs. In addition, respondents would not be out-of-pocket before the merits of the claim are even decided. Should such security be required, the claimant could make an application to the SCMA Registrar or Tribunal, seeking such security.

The SCMA is grateful for the help of the organisations involved in the revision of the SBC Terms.  We would like to thank MPA, SSA, Singapore Standards, and the Singapore Chemical Industry Council.

MT: What are the differences between SBC Terms 2022 and the rest of arbitration terms out there?

A distinguishing feature of the SBC Terms 2022 (as is also the case under the SCMA Rules) is the non-administered model of arbitration upon which it was crafted. Unlike institutions that adopt an administered arbitration model, parties are given full control of managing their own arbitration process. The SBC Terms 2022 and the SCMA Rules provide parties with the tools and procedural flexibility to maximise efficiency and decrease costs. There are no fees payable for administration of the arbitration since this is not performed by the SCMA. There is also no need to pay a filing fee before commencing the arbitration or placing a deposit. The upfront costs are significantly reduced. However, should parties require specific services, such as the appointment of the sole arbitrator when parties cannot agree, this can be provided by the SCMA Secretariat at a modest fixed fee.

It is due to these cost-saving measures that the shipping and international trade industries have long favoured non-administered arbitration. For this reason, the SCMA was re-constituted in 2009 as an independent body to provide a framework for maritime arbitration specifically tailored to the needs of the maritime community.

When the SBC Terms 2022 are compared to SCMA Rules, some examples would illustrate how the former has been designed by SCMA to specifically benefit the bunker industry.

  • Where a bunker claim is valued at SGD100,000, the earliest it can be resolved under the SCMA Rules’ Expedited Procedure is an estimated period of three (3) months. By contrast, the same claim could, when applying the Summary Procedure of the SBC Terms 2022, be determined in or around less than two (2) months.
  • The arbitrator’s fees and legal costs for proceedings under SBC Terms 2022 are capped at a lower ceiling than that for the SCMA Rules’ Expedited Procedure.

MT: Why should bunker players adopt SBC Terms 2022 in their contracts?

For the reasons earlier shared, it is clearly in the financial interests of bunker players to adopt the SBC Terms 2022. The cost savings do not, in any way compromise due process to achieve a fair and just outcome.

Should a bunker player wish to use the SBC Terms 2022 in its sale and/or supply contracts, the model arbitration clause is available for incorporation on the SCMA website.

MT: How can SBC Terms 2022 help the maritime sector as it moves towards the adoption of clean fuels in preparation for IMO 2030/2050?

The IMO has implemented the Carbon Intensity Indicate Rating Scheme that measures, amongst other indicia, carbon emissions of ships. One key way to reduce carbon emissions is to use low-carbon or cleaner fuels.

The utility and benefits of the SBC Terms 2022 remain unchanged, regardless of the composition of the fuel. Quality and quantity assurance will persist as perennial concerns. Similarly, the possibility of parties refusing to make full and timely payment continues to exist, as does non-delivery of low-carbon fuels. These are all causes of disputes arising out of or in connection with the sale and/or supply of low-carbon bunker.

Ms Corina Song is also a Partner in the international arbitration, litigation, and maritime and aviation practice groups at Allen & Gledhill LLP. Ms Song is a Senior Accredited Specialist in Maritime and Shipping Law by the Singapore Academy of Law, a statutory board.

 

Photo credit: Singapore Chamber of Maritime Arbitration
Published: 8 May, 2023

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Emissions reporting

ZeroNorth and Veracity by DNV launch end-to-end emissions reporting, verification service

New offering combines ZeroNorth’s Vessel Reporting and Emissions Analytics platform with Veracity platform and DNV’s Emissions Connect verification services to deliver an end-to-end compliance solution.

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ZeroNorth and Veracity by DNV launch end-to-end emissions reporting, verification service

Maritime technology solutions provider ZeroNorth on Friday (16 May) said it has partnered with Veracity by DNV to launch a fully integrated emissions reporting and verification service for the maritime industry. 

Teekay is the first customer that will be implementing the service across its fleet, following successful testing and development.

As regulatory requirements tighten, ZeroNorth said maritime operators face growing demands for emissions transparency and reporting integrity. At the same time, poor data quality remains an industry-wide challenge. 

“The new offering combines ZeroNorth’s Vessel Reporting and Emissions Analytics platform with the Veracity platform and DNV’s Emissions Connect verification services to deliver an end-to-end compliance solution,” the company said in a statement. 

“The offering simplifies compliance by integrating automated data reporting with expert validation, reducing administrative burdens and improving data reliability.”

A key differentiator is the multi-layered data quality feedback loop, which ensures emissions data undergoes rigorous validation at multiple stages. Verification warnings from Veracity by DNV are automatically flagged to ZeroNorth’s data quality team, which then works directly with vessel crews to resolve discrepancies before final submission to authorities. 

This reduces compliance risks and enhances regulatory confidence while supporting continuous monitoring of EU MRV, IMO DCS, CII ratings, EU ETS and FuelEU Maritime compliance.

Teekay, a long-standing customer of ZeroNorth, participated in early testing of the solution and providing operational feedback. Since its successful implementation with Teekay, the service has been rolled out to two additional customers, and further deployments are underway.

Anders Schulze, Chief Operations Officer at ZeroNorth, said: “The maritime industry faces growing pressure to ensure emissions data is not just reported, but verified to the highest standards. Yet fragmented systems and manual processes continue to undermine data quality and increase compliance risk. 

“By combining ZeroNorth’s data and analytics capabilities with Veracity by DNV’s verification expertise, we are directly addressing this challenge. Our goal is to build trust in emissions data and reduce complexity for shipowners and charterers. We’re especially pleased that Teekay, a long-time partner, played a central role in shaping and validating the service.”

Mikkel Skou, Managing Director at Veracity by DNV, said: “At Veracity by DNV, the value of our ecosystem is built on strong partnerships, exemplified by our collaboration with ZeroNorth.

“By integrating trusted data and solutions like ZeroNorth’s Vessel Reporting and Emissions Analytics platform, we create a robust network that supports collaboration and drives sustainable growth in the maritime industry. 

“We look forward to continuing working towards our ambition to deliver trust and connectivity to the industry through this partnership with ZeroNorth.”

Mikkel Seidelin, Chief Commercial Officer at Teekay, said: “Partnering with ZeroNorth improves our ability to navigate complexities seamlessly, leveraging on data and technology to optimise our performance and reduce inefficiencies.

“When we are equipped with verified, end-to-end data, it empowers us as owners towards seamless decision-making, resulting in real sustainable and operational target-achievements.”

 

Photo credit: ZeroNorth
Published: 16 May, 2025

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LNG Bunkering

Singapore: FueLNG achieves 400th LNG bunkering operation milestone

Bunker tanker “FueLNG Bellina” successfully delivered LNG bunker fuel to “BYD Shenzhen”, the world’s largest LNG-fuelled car carrier at Singapore anchorage during its maiden voyage.

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Singapore: FueLNG achieves 400th LNG bunkering operation milestone

Singapore’s licensed LNG bunker supplier FueLNG on Thursday (15 May) announced the successful completion of its 400th LNG ship-to-ship (STS) bunkering operation in the republic.

FueLNG, a joint venture between Keppel Offshore & Marine and Shell Eastern Petroleum Pte Ltd, marked the milestone with bunker tanker FueLNG Bellina successfully refuelling BYD Shenzhen, the world’s largest LNG-fuelled car carrier, at Singapore anchorage during its maiden voyage.

“With a capacity of 9,200 vehicles and equipped with dual-fuel LNG propulsion, the BYD SHENZHEN represents the next generation of low-emission maritime transport,” it said in a social media post. 

Shell said it supported BYD Shenzhen on its maiden voyage as the supplier of the LNG bunker fuel. 

“Like all LNG dual fuel vessels, BYD Shenzhen is on the pathway to net zero emissions. She can take bio-LNG, and in the future e-LNG, in her fuel mix for further emission reduction and regulatory compliance,” it said in a separate social media post. 

 

Photo credit: Shell
Published: 16 May, 2025

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Biofuel

Hong Kong: CPN hits new record for China’s largest B24 biofuel bunkering operation

Chimbusco Pan Nation delivered 6,300 mt of B24-VLSFO in Hong Kong to boxship “XIN LOS ANGELES” on 15 May, exceeding its previous record of 5,500 mt delivered in February 2025.

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Hong Kong: CPN hits new record for China's largest B24 biofuel bunkering operation

Hong Kong-based bunker supplier Chimbusco Pan Nation Petro-Chemical (CPN) on Friday (16 May) said it has set a record for China’s largest B24 marine biofuel bunkering operation.

CPN said it delivered 6,300 metric tonnes (mt) of B24-VLSFO in Hong Kong to container ship XIN LOS ANGELES on 15 May. 

The supply exceeded CPN’s previous record of 5,500 mt delivered to the same ship in February 2025.

“This collaboration reinforces CPN’s ability to execute large-scale marine biofuel bunkering with precision and reliability,” the company said in a social media post.

“By consistently supplying large volumes of B24 marine biofuel, CPN supports reduced carbon emissions and sustainable shipping practices globally.”

Related: CPN achieves largest B24 bio bunker fuel delivery in Hong Kong and China

 

Photo credit: Chimbusco Pan Nation Petro-Chemical
Published: 16 May, 2025

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