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Singapore: Panelists speak on bunker fuel quality issues at Clyde & Co., SCMA organised webinar

Equatorial Marine Fuel Management Services, Oldendorff Carriers, Lloyd’s Register and organisers took part in a Bunker Quality Claims Webinar moderated by Manifold Times on 10 November.
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Stakeholders along the bunkering value chain, comprising of a top bunker supplier, marine fuel quality laboratory, shipowner and legal experts, discussed marine fuel quality issues at a lively event of over 300+ delegates on Wednesday (10 November).

The Bunker Quality Claims Webinar organised by the Singapore office of international law firm Clyde & Co and the Singapore Chamber of Maritime Arbitration was moderated by Manifold Times.

Equatorial Marine Fuel Management Services – ‘Prevention is better than cure’

Choong Sheen Mao, Director at Equatorial Marine Fuel Management Services (EMF), emphasised to bunker buyers the importance of conducting due diligence checks before actual bunkering operations.

“There actually is no magic to this. We recommend working with reliable parties to understand the supply chain and ensuring that there is transparency and accountability across it,”

“We advise buyers to find out from their suppliers how cargo sourcing and quality control and assurance procedures are carried out.”

Choong quoted an example, sharing that EMF has been working with bunker buyers who arrange for their own surveyors to come on board the company’s bunker tankers to draw samples from the cargo tanks and conduct quality testing before bunkering.

Further, due to the company owning, operating and managing a sizeable fleet of bunker tankers and cargo inventory, it is able to promptly arrange for another bunker stem should a particular cargo not meet a client’s requirements.

“To us, a lot of emphasis is placed on making sure the product is on-spec before reaching the receiving vessel’s fuel tanks. It is definitely more prudent to avoid the whole problem by conducting more checks [in the beginning], rather than to face the consequences such as delay, debunkering and other complications.”

Oldendorff Carriers – ‘Huge problem’ when bunker surveyors are not doing their job

Jens Maul Jorgensen, Director at Oldendorff Carriers, highlighted the importance of the bunker surveyor’s role in correctly determining the quality of marine fuel.

“When a surveyor is not doing their job correctly we have a huge problem,” states Jorgensen.

Amongst scenarios shared by Jorgensen’s presentation was a case study of a bunker surveyor witnessing the bunker barge crew not pouring the samples in the correct manner – but not acting on it immediately.

Each sample bottle was fully filled up individually in a series; instead of the proper method recommending the bunker sample to be evenly distributed by three layers among each bottle.

Though the surveyor did later submit a Letter of Protest, he did not put a stop to notify stakeholders of the wrongful bunker sample collecting process when witnessing it. Further, he did not take any pictures of the disputed operation.

“And that means we have to spend an additional several thousand dollars to take tank samples [in order to properly determine the quality of the bunkers] due to a lack of focus from the bunker surveyor.”

He adds: “I’ve always said that 30% of mistakes come from the bunker supplier side; and 30% of mistakes are made onboard the vessel; but the last 40% of mistakes are created by the bunker surveyor and they have so much power.”

“I’m just hoping the surveyor companies are really stepping up now and really making sure everything would go fine.”

Lloyd’s Register – ‘Tender loving care’ and understanding required to use VLSFOs effectively

Douglas Raitt, Regional Advisory Services Manager of Lloyd’s Register, was keen to dispel claims of IMO 2020 bunker fuels, namely Very Low Sulphur Fuel Oil (VLSFOs), creating an “endemic” challenge for the marine fuels sector.

Raitt compared VLSFO and marine gas oil (MGO) fuel quality data from January 2020 to October 2021, noting a consistent decrease in off-specifications of both products.

VLSFO started 2020 with an average off-specification of 5.5%, which decreased to about 2.5% in the last 12 months; while MGO began 2020 with an average off-specification of 2.5%, which has now stabilised to about 1.5%.

“So where am I going with all of these assertions? Well, actually, could the problem be the human actor in the bunker industry?” He questioned.

“Is it not necessarily the fuel quality to blame? But is it the lack of understanding and tender loving care by all people in the supply chain to maintain cool and level headed when issues occur?”

Raitt noted several clients within the past 12 months encountering sludging in the oil separators when consuming VLSFOs, even when the Total Sediment Potential (TSP) was on specification.

The clients erroneously reported fuel instability when encountering the formation of molten wax at 50°C due to the paraffinic nature of VLSFOs; but reported the problem to be solved when advised to handle the product at higher temperatures.

“So that’s just one example of where tender loving care and understanding the fuel that you’re dealing with needs to be done by the crew on board a ship.”

Clyde & Co – Evidence collection ‘key’ to achieving a solid position in bunker quality claims

Paul Collier, Senior Associate at Clyde & Co, emphasised the collection of evidence is key for resolving bunker quality disputes.

“This is why the surveyor work is incredibly important in the context of where there are claims,” he states, while echoing Jorgensen’s view of the surveyor’s importance during a bunkering operation.

“So generally, drip samples from the receiving vessels’ manifolds are regarded as the most accurate and samples that are taken from the bunker barges or alternatively from the vessel’s tanks may not be regarded as representative of the fuel that is supplied.”

According to Collier, if a bunker supplier’s contract contains a clause stating the supplier’s sample is “final and binding”, it may be difficult for the buyer to advance an off-specification claim if the supplier’s sample tests on specification, but other samples test off-specification. In such cases, the buyer will likely need to establish there has been fraud or manifest error.

This is especially the case when the bunker supplier is supported by an accurately taken drip sample.

“However, it is genuinely quite difficult for a buyer to establish that there has been fraud or manifest error,” he shares.

“The buyer is likely to need clear evidence that the supplier sample is not representative of the fuel supplied to the vessel.”

Singapore Chamber of Maritime Arbitration – An effective method in dealing with a ‘non-responsive’ party

Punit Oza, Executive Director at the Singapore Chamber of Maritime Arbitration (SCMA), noted arbitration as a “fantastic way” of dealing with a non-responsive entity.

“Most of the time, arbitration is used as a way of getting the non-responsive party to come to the table. And that’s an effective way of doing it,” says Oza.

“The advantage of the SCMA is that there’s no filing fee, and there’s no admin fees. So, you when you file an arbitration with SCMA, you do not have to pay any costs upfront.”

A plaintiff who files an arbitration with SCMA, also possible through an easy QR Code or E-Form, will get a reply within 24 hours with an unique registration number of the suit; further, SCMA will also notify to the counterparty confirming that the arbitration is registered.

“That puts additional pressure on the non-responsive Counterparty and hopefully brings the guy to the table. There are also rules in SCMA which allow for the arbitration to proceed even if the other party doesn’t respond,” he explains.

“The award can be given in absence [of the counterparty] as well. As long as you’ve given the notices you should be able to uphold that award and enforce it through the New York Convention which is enforceable in over 164 countries all over the globe.

“Furthermore, there some exclusive procedures such as Singapore Bunker Claims Terms, Small Claims Expedited Procedure & Arb-Med-Arb Hybrid solution, which are all extremely useful tools for the parties to cost-effectively resolve their disputes.”

 

Photo credit: Clyde & Co / Singapore Chamber of Maritime Arbitration
Published: 18 November, 2021

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Research

Integr8 Fuels report shares comprehensive analysis of Mediterranean ECA

Data reveals a market in rapid transition, confirming some industry predictions while uncovering new, emerging risks for ship operators.
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July 8, 2025

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Integr8 Fuels trading intelligence (July 2025)

International bunker trading firm Integr8 Fuels on Monday (7 July) shared its new report ‘Mediterranean ECA: Immediate Operational and Commercial Impact of Implementation’ which provides the first comprehensive analysis of the rule’s effects on fuel quality and regional availability.

The data reveals a market in rapid transition, confirming some industry predictions while uncovering new, emerging risks for ship operators. The following key findings include:

  1. Dramatic Supply Shift Confirmed: VLSFO Availability Contracts Sharply. VLSFO’s share of the Mediterranean fuel market has plummeted from over 60% in December to just 37.5% in May. In parallel, the number of ports supplying VLSFO has fallen by 47%, creating new logistical challenges for vessels that continue to use the grade.
  2. VLSFO Instability Spikes as Supply Chain Adapts. Very Low Sulphur Fuel Oil (VLSFO) off specification rates more than doubled from 1.5% in December to 3.8% in May. Critically, one in four (25%) of these off-specs were for total sediment potential (TSP), indicating a rising risk of sludge formation that can damage engines. This trend appears linked to extended in-tank storage and the consolidation of older fuel stocks as demand slows and suppliers pivot away from VLSFO.
  3. Persistent Flash Point Risks in Key LSMGO Hubs. Flash point non-conformance has increased significantly and now accounts for over two-thirds of all LSMGO off specs. Our data shows this is not a random problem, with over 75% of all flash point incidents concentrated in Spain, Turkey, and Italy, signalling a persistent potential for SOLAS violations in core supply zones.

Note: The full report may be obtained from Integr8 Fuels here.

 

Photo credit: Integr8 Fuels
Published: 8 July 2025

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Bunker Fuel

Integr8: IEA’s 2030 outlook and what it means for bunker markets

Research Contributor Steve Christy analyses IEA’s oil market outlook to 2030 which he says will shape the bunker market over the rest of this decade.
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June 26, 2025

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The IEA’s 2030 Outlook and What It Means for Bunker Markets

By Steve Christy, Research Contributor, Integr8 Fuels
[email protected]   

25 June 2025

The ‘Oil World’ will start to decline within the next 5 years

With oil prices in turmoil, moving much higher because of US, Israeli and Iranian attacks, and then much lower on what looks like a fragile ceasefire, it is perhaps a good time to take a ‘bigger picture’ look at the direction of the oil industry over the next 5 years. The IEA has just published its oil market outlook to 2030, and there is a lot within this analysis that will shape the bunker market over the rest of this decade.

Importantly, we are moving from an industry that has been growing, to one that will soon be in decline. In the IEA outlook, world oil demand is forecast to show only modest gains over the next 2 years, with minimal gains in 2028/29 and then go into decline in 2030.

graph1 no line

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Petrochemicals and aviation is where the growth is

Looking at the key aspects of the oil products markets over the next 5 years, there are a few high-profile developments taking place. Firstly, there is significant growth in the petrochemical sector, and this will drive higher demand for LPG, ethane, and naphtha.

Secondly, there is also growth in jet demand. This follows the continued increases air travel and transport, and that jet fuel still essentially can only come from an oil refinery.

graph4

Bunker demand is expected to remain flat

Within their analysis, the IEA expects demand for bunkers to remain stable at around 5 million b/d over the outlook period. Their basis is that a 2% p.a. growth in tonne-kilometres demand will be offset by efficiency gains in the shipping industry and IMO regulations supporting some switching to lower emissions fuels, such as biofuels and ammonia.

Oil demand is falling as EVs are increasing

Gasoline and diesel have accounted for around 40% of total world oil demand. The main reason for oil demand starting to decline at the end of the decade is the expansion of electric vehicles (EVs) and the accompanying loss of gasoline and diesel demand in the transport sector.

For us in bunkers, it is the gasoil/diesel and fuel oil sectors that will be most influential.

Substantial changes in the outlook for US & China

Two major changes from last year’s IEA report are that:

  • US oil demand is still forecast to fall, but at a much slower pace (which is not surprising under President Trump’s policies).
  • Oil demand in China will fall much earlier than previously anticipated.

China is now the world leader in EVs in terms of manufacturing and sales. This, along with massive investments in the high-speed rail network and structural shifts in the economy, mean the IEA is now expecting China’s oil demand to start falling within the next 4 years! This is a radical change, with China being the powerhouse behind increases in world oil demand in recent years.

In contrast, before President Trump was elected, the forecast was for US oil demand to fall by 1.5 million b/d between 2025 and 2030. Now, with Trump in power, the IEA has ‘downgraded’ this forecast decline to just 0.45 million b/d

Europe shows the biggest drop in oil demand

The agency has kept its previous expectation for a 0.8 million b/d drop in European oil demand between now and 2030. This means Europe is now at the forefront of changes in oil demand over the next 5 years.

There are no planned refinery closures in Europe after this year, but lower demand in the region will lead to lower refinery throughputs and product availabilities. It is how product balances unfold between cuts in refinery output versus the drop in oil demand; this will impact trade, pricing and how bunker markets are supplied in the region.

Limited changes in the US; but no market can stand alone

The situation in the US may be more balanced given the slower pace at which oil is removed from the energy mix. But we know how markets are ‘interwoven’, and no international bunker market is immune to what is happening elsewhere in the world.

graph3

Latin America & African demand continues to rise

It is by coincidence that forecast declines in demand in Europe and the US are exactly matched by increases in oil demand in the growing economies of Latin America and Africa. This means that oil demand in the Atlantic Basin is expected to be close to current levels in 5 years time. However, with very few new refinery projects in the growth regions, it does stress the need for additional trade volumes to move between areas to achieve regional balances across different product groups. We in bunkers will be affected by these additional trade flows and price implications.

The Middle East not as it seems; its rising

On the face of it, there is a slight decline in Middle East oil demand over the next 5 years. However, once you dig into this, Saudi Arabia’s strategy to stop burning domestic oil for power generation and desalination plants* more than explains the cut. If this is taken out of the equation, Middle East product demand is forecast to increase by around 0.4-0.5 million b/d by 2030.

* part of this is a reduction is in fuel oil use, which could push more of this into the international market.

Nonetheless, the Middle East is one of the key areas where new refining capacity, upgrading and desulphurisation is taking place. Therefore, long haul product exports from the region are likely to continue to increase. This will cover some of the imbalances elsewhere in the world, but will also have price implications.

Asia & China could see the biggest changes for us

Finally, some of the biggest issues hitting the oil and bunker markets are likely to be seen in Asia As outlined, oil demand in China is expected to start falling by the end of the decade. But this is in contrast to what is happening in India and other Asian countries, where a combined growth of almost 2 million b/d is seen between now and 2030.

This is where trade flows, pricing and market influence could be interesting. Despite no growth in Chinese oil demand, there are still a number of refinery capacity additions in the pipeline. There are of course a number of scenarios surrounding these dynamics, but one obvious one is that China becomes an even bigger products exporter over the next 5 years. Again, this will have implications for all the major products, including what happens to us in bunkers.

This report poses more questions than answers

Clearly these are prominent issues for us in the bunker market. Longer term planners in our business will be assessing the potential surpluses and shortfalls by region for VLSFO, blending components and HSFO based on these demand and refining forecasts. It will be interesting to see how trade flows, bunker pricing and China influence our business over the next 5 years.

 

Photo credit: Integr8 Fuels
Published: 26 June, 2025

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Singapore: Bunker sales volume raises to year record high of 4.88 million mt in May

Bio-blended variants of marine fuel oil jumped 671.7% to 40,900 mt when compared to figures seen in May 2024.
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June 16, 2025

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SG bunker performance May 2025

Bunker fuel sales at Singapore port inched forward by 1.1% on year in May 2025, the highest volume seen in 2025, according to Maritime and Port Authority of Singapore (MPA) data.

In total, 4.88 million metric tonnes (mt) (exact 4,878,100 mt) of various marine fuel grades were delivered at the world’s largest bunkering port in April, up from 4.83 million mt (4,826,800 mt) recorded during the similar month in 2024.

Deliveries of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in May (against on year) recorded respectively 1.89 million mt (+8.6% from 1.74 million mt), 2.45 million mt (-7.2% from 2.64 million mt), 1,200 mt (from zero), 1,700 mt (-88% from 14,300 mt) and zero (from zero).

SG bunker port performance May 2025

Bio-blended variants of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in May (against on year) recorded respectively 40,900 mt (+671.7% from 5,300 mt), 95,800 mt (+97.9% from 48,400 mt), 700 mt (from zero), zero (from zero) and zero (from 300 mt). B100 biofuel bunkers, introduced in February this year, recorded 1,900 mt of deliveries in May.

LNG and methanol sales were respectively 45,000 mt (-7.8% from 48,800) and zero (from 1,600 mt). There were no recorded sales of ammonia for the month and so far in 2025.

Related: Singapore: Bunker fuel sales increase by 4% on year in April 2025
Related: Singapore: Bunker fuel sales increase by 0.5% on year in March 2025
Related: Singapore: Bunker fuel sales down by 8.1% on year in February 2025
Related: Singapore: Bunker fuel sales down by 9.1% on year in January 2025

A complete series of articles on Singapore bunker volumes reported by Manifold Times tracked since 2018 can be found via the link here.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 16 June 2025

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