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Singapore: Lawyer ‘strongly recommends’ bunker suppliers revisit T&Cs for contactless bunkering ops

Significant uptick in the number of quality claims being alleged by ship owners has also been seen since the implementation of contactless bunkering operations, notes Partner at Rajah & Tann.
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The following article on legal responsibility during contactless bunkering operations at Singapore port amidst the Covid-19 pandemic has been written by Nathanael Lin, Partner (Shipping & International Trade) at legal firm Rajah & Tann Singapore LLP; the write-up was made possible through an arrangement led by the Singapore Chamber of Maritime Arbitration (SCMA):

The implementation of contactless bunkering by way of MPA’s Port Marine Circular (“PMC”) No. 21 of 2021 dated 28 May 2021 (since superseded by PMC No. 31 of 2021 dated 14 July 2021), coupled with other safe management measures enacted by the MPA (e.g., Rostered Routine Testing, strict crew change protocols, etc) have significantly reduced the risk of a COVID-19 transmission during a bunkering operation.  This is evident from the fact that we have not seen significant COVID-19 clusters forming on board bunker barges since the NEWOCEAN 6 cluster in January 2021.  Nevertheless, we would strongly recommend that bunker suppliers revisit their General Terms & Conditions, to contractually provide for the allocation of risk in the event that a bunker barge’s crew (or vice-versa) is infected with COVID-19: as we have seen in the case of the NEWOCEAN 6 cluster, any such infection could result in the quarantine of the affected bunker barge (and potentially other barges in the same management / fleet) for weeks, causing significant operational disruption and monetary losses.  Before doing so, bunker suppliers would have to carry out their own due diligence to ascertain if it would be feasible to prove, i.e., trace, the source of any such infection.

In addition to the foregoing, we have seen a significant uptick in the number of quality claims being alleged by ship owners since the implementation of contactless bunkering operations.  Bunker suppliers, bunker clerks, and the crew of the bunker barge are now unable to witness the sampling and sealing of the bunker sample at the receiving vessel’s manifold.  Some of the more creative bunker suppliers have attempted to video the sampling and sealing process through the use of unmanned aircraft, or drones, but MPA’s PMC No. 22 of 2021 dated 4 June 2021 requires the Master of any vessel within Singapore port to notify the Port Master of any unmanned aircraft (including drones).  Our anecdotal experience is that such attempts to use drones to record the sampling and sealing process have not been met with regulatory approval.

The good news for suppliers is that virtually all such quality claims have been settled commercially. Suppliers have been able to fend off such claims by making reference to tests done on the barge-retained sample, as well as the fact that other vessels who have taken delivery of bunkers from the same barge lot have not brought allegations of quality claims based on the same quality parameters which are allegedly off-specification.

The bad news is that dealing with such claims incurs significant opportunity cost, and even small discounts cut into suppliers’ already-thin profit margins – which have seen significant erosion this year following the significant increase in Zhoushan as a price-competitive alternative bunkering port to Singapore.  Any review of suppliers’ General Terms & Conditions should take into account the increased operational risk to bunker suppliers arising from contactless bunkering operations as well.

Nathanael Lin
Partner, Rajah & Tann
Shipping & International Trade
D +65 62320293
F +65 64282092
Email: [email protected]

Editor’s note: The above article is the final piece in a series of SCMA organised write-ups focusing on legal responsibility during contactless bunkering operations. Earlier two articles were:

Related: Singapore: Contactless bunkering protocol breach may lead to regulatory action and tort of negligence claims
Related: Contactless bunkering operations at Singapore port ‘raises questions’ on remedies in event of breach

 

Photo credit: Manifold Times
Published: 28 July, 2021

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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.

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RESIZED Sora Shimazaki on Pexels

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.

Related: Singapore: Hin Leong Founder OK Lim gets jail term slashed to 13.5 years

 

Photo credit: Sora Shimazaki
Published: 21 July, 2026

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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.

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July 21, 2026

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RESIZED Drew Beamer

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.

Related: Singapore: Director declares Heng Tong Fuels & Shipping’s inability to continue business
Related: Heng Tong Fuels & Shipping in court over DBS Bank bunker tanker loan
Related: Singapore: Bunker tanker “Coastal Neptune” arrested
Related: Heng Tong Fuels & Shipping, Coastal Logistics tankers enter S&P market

 

Photo credit: Drew Beamer
Published: 21 July, 2026

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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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July 21, 2026

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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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