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Singapore: Court of Appeal dismisses CIMB USD 5.7 million claim over earlier WFS/Panoil bunker contracts

Unlike the earlier High Court judgement, CoA Judges found CIMB did proofed the authenticity of the debenture; but offered a different perspective on why the case still favoured WFS.

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Editor: The following article is a summary of the full 47-page judgement from the High Court of the Republic of Singapore. The complete document published on 5 March 2020 is available here.

The Court of Appeal on 5 March upheld an earlier decision made by the High Court against CIMB Bank Berhad (CIMB) and dismissed an appeal made by the bank as a legal assignee under a deed of debenture*.

CIMB in June 2020 lost a legal claim of approximately USD 5.7 million against bunker trading company World Fuel Services (Singapore) Pte Ltd (WFS) over a deed of debenture issued by former Singapore physical bunker supplier Panoil Petroleum Pte Ltd (Panoil).

The bank lost the earlier suit at the High Court due to issues in proving the authenticity of the debenture; it could not prove two signatures purportedly belonged to Alvin Yong Chee Ming (Yong), Panoil’s former managing director, and Lim Shi Zheng (Lim), a director of Panoil; both did not show up in court.

However, in the latest development, Judges at the Court of Appeal found CIMB did produce enough evidence to proof the authenticity of the debenture; but offered a different perspective on why the case still favoured WFS.

“In the present case, it was not disputed that the legal burden of proof to show authenticity was on CIMB,” the Judges stated.

“We have considered the omission by CIMB to call Yong and Lim or to introduce any expert evidence together with the rest of the evidence.

“Relying predominantly on the circumstantial evidence available before the court, however, we reach a different conclusion from the Judge on the issue of authenticity.

“We find that CIMB has established authenticity of the Debenture on a balance of probabilities and discharged its burden of proof.”

Instead, Judges at the Court of Appeal noted previous contracts between WFS and Panoil including a right of set-off favouring WFS under documents signed by the parties.

“Accordingly, it is unnecessary to address WFS’ argument that an adverse inference should be drawn against CIMB for not calling Yong and Lim as witnesses on the right of set-off,” they reasoned.

“WFS was therefore entitled to a right of contractual set-off under the 2014 Offset Agreement. In the circumstances, the question of the application of the Umbrella Contracts to the Subject Transactions is academic. Likewise, it is unnecessary to consider WFS’ claim to an equitable set-off.

“We therefore find that CIMB cannot succeed in its claims against WFS, but for a different reason than that of the Judge, and dismiss CIMB’s appeal in CA 107/2020. Although CIMB has established the authenticity of the Debenture, WFS has established its right of set-off.”

Background:

Panoil Petroleum and its five other associated companies, namely Panoil Tankers Pte Ltd, Panoil Shipping Pte Ltd, Panoil Marine Pte Ltd, Pan Energy Pte Ltd, and Panoil Logistics Pte Ltd., were placed under judicial management during October 2, 2017.

Panoil Petroleum’s bunker supplier license was not renewed by the Maritime and Port Authority of Singapore (MPA) when it expired on August 31, 2017 due to unauthorised alterations being made on the pipelines of the bunker tankers between the Mass Flow Meters (MFM) and the flow boom.

The alterations allow bunker fuel that have been measured by the MFM to be siphoned out and undermines the accuracy of the readings from the MFM system, according to the MPA.

Its bunker craft operator licence was earlier revoked by the port authority on 15 August, 2017.

*A debenture is a type of bond or other debt instrument that is unsecured by collateral. Since debentures have no collateral backing, they must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds. [Source: Investopedia]

Related: Panoil Petroleum and Pan Energy appoint liquidator to hold meeting of creditors
Related: Singapore: CIMB Bank loses USD 5.7 million claim against WFS over Panoil debenture
Related: Singapore: Liquidators seek to wind up Panoil Petroleum at High Court

 

Photo credit: Manifold Times
Published: 17 March, 2021

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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