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SIBCON 2024: Oldendorff, Peninsula discuss uptake of traditional bunker fuels, risk management

‘The majority of the orderbook today, in all segments, is not dual fuel mainly due to costs. We cannot run away from that,’ shared the Director of Bunkers at Oldendorff Carriers.
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Jens Oldendorff

Representatives of bulk shipowner Oldendorff Carriers GmbH & Co. KG. and bunkering firm Peninsula, amongst others, met at the Fuel Oil Markets – Projections and Supply Chain Resilience panel discussion session during the 23rd Singapore International Bunkering Conference and Exhibition (SIBCON 2024).

Topics discussed included the increased uptake of traditional marine fuels and importance of robust risk management.

Jens Maul Jørgensen, Director of Bunkers, Oldendorff Carriers GmbH & Co. KG, noted the dry bulk segment to be welcoming more than a thousand newbuildings within the next three years. Data from shipyards have indicated most of these vessels, especially the bigger ones, having scrubbers onboard.

“The majority of the orderbook today, in all segments, is not dual fuel mainly due to costs. We cannot run away from that; the vessel need fuel to sail,” he explained.

Meanwhile, areas such as the Amsterdam–Rotterdam–Antwerp (ARA) region have seen even more high sulphur fuel oil (HSFO) than LSFO supplied every month, which shows demand for traditional HSFO to be increasing. 

New Emission Control Areas (ECAs) such as the Mediterranean Sea ECA taking effect from 1 May 2025 will also mean more consumption of low sulphur bunker products.

Jørgensen, who is responsible for purchase bunker fuels for approximately 750 bulk carriers, next highlighted the importance of managing proper exposure control due to fluctuating oil prices.

“If we don’t hedge, we speculate. We must make sure that the prices are safe as nobody can predict what is going on in six months. Being in a open position will be a big risk, especially in this market, so proper exposure control is the key.”

Kenny Peninsula

Kenny MacLean, Chief Operating Officer, Peninsula agreed with Jørgensen approach towards managing risk.

“It’s the same story, but we’re buying bulk, and so it’s progressively even more important. I think the bunker industry in general has had a bit of a checkered past with companies that haven’t paid too much attention to their risk management,” shared MacLean.

“That’s something that Peninsula is absolutely laser focused on. So obviously, all our purchases are hedged and that’s of critical importance. 

“Other areas that are super important is making sure that you’re getting economies of scale out of the purchases as well. But really, it’s that hedging, derivatives, price risk management side that’s of critical importance in our industry in general.”

Concurring with Jørgensen’s observation of high consumption of low sulphur bunker products such as marine gas oil (MGO) within ECAs, MacLean added the similar regions have also been driving the increased use of biofuels. 

“What we try to do is have a very diverse customer base, and our supply decisions are pretty much based around aggregating that customer demand by being a bit more customer centric and really getting into our customers and asking, ‘What are the solutions that you’re going to need?’” he said.

“It’s our job as a bunker supplier to aggregate that fuel together and make sure that we can make it available in the right place at the right time, otherwise, you’re going to be left just with a few very large bunkering hubs around the world. 

“It’s incumbent upon bunker suppliers like Peninsula to make sure that if it’s in the Mediterranean we’ve got the full range of products available so that when Jens knocks and says, ‘Actually, I’d quite like some biofuel guys’ we are there with the solutions ready and available.”

 

Photo credit: Manifold Times
Published: 17 October 2024

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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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LNG Bunkering

CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s alternative fuel bunkering infrastructure.
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July 21, 2026

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CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

China’s Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) recently signed a contract with Sinopec (Beijing) Clean Energy Co., Ltd. to build a 12,000-cubic metre (m3) LNG bunkering vessel, according to Chinese maritime media.

The vessel is scheduled for delivery in 2028 and will support Sinopec’s efforts to expand its presence in the marine clean energy sector.

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s LNG bunkering infrastructure.

With this signing , CIMC Pacific Offshore Engineering’s LNG bunkering vessel orderbook is further strengthened, maintaining its leading position in the global market for small and medium-sized LNG bunkering vessels.

The contract also marked another milestone for CIMC SOE, which has seen a sharp increase in orders and business performance this year amid a surge in domestic LNG vessel demand.

 

Photo credit: Nantong CIMC Sinopacific Offshore & Engineering
Published: 21 July, 2026

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Nuclear

ABS awards AiP to Korean institute for SMR-powered container ship concept design

KRISO says AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.
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July 21, 2026

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ABS awards AiP to Korean institute for SMR-powered container ship concept design

Korea Research Institute of Ships & Ocean Engineering (KRISO) on Thursday (16 July) received Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for its concept design of a 15,000 TEU Small Modular Reactor (SMR)-powered container ship utilising Molten Salt Reactor (MSR) technology.

KRISO said the AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

“This achievement demonstrates international recognition of KRISO’s technological capabilities in the rapidly evolving field of nuclear-powered shipping, supporting the transition toward low-carbon maritime transport,” it said. 

Building on this milestone, KRISO will continue advancing basic and detailed ship design, paving the way for future demonstration and commercialisation of SMR-powered vessels. 

Through continued R&D and international collaboration, KRISO remains committed to strengthening next-generation maritime technologies and contributing to the safe deployment of nuclear propulsion in the maritime industry.

 

Photo credit: Korea Research Institute of Ships & Ocean Engineering
Published: 21 July, 2026

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