TFG Marine, the global marine fuel supply and procurement joint venture between Trafigura and shipping firms Frontline and Golden Ocean, on Tuesday (9 January) published its industry-endorsed Modernising Marine Fuel Delivery white paper written in collaboration with marine fuel supply expert Adrian Tolson.
The firm said the paper outlined the multiple benefits of the adoption of calibrated coriolis mass flow meters (MFMs).
It called on all marine fuel supply chain participants to actively support the widespread implementation of this digital and vetted technology, that not only brings added transparency, but through accurate data capture will assist shipowners, ports and other industry stakeholders in meeting their decarbonisation ambitions.
“This paper argues that the global adoption of calibrated mass flow meters (MFMs) will bring much-needed transparency to bunkering by generating accurate, real- time data for all stakeholders along the marine fuel supply chain,” according to the introduction of the paper.
“It describes the problems for the industry caused by inaccurate quantity measurement and sets out a number of remedial actions. It recognises the success of Singapore’s MFM- based bunker licensing system and proposes this as a template for regulators in other regions across the world. It calls on all supply chain participants to actively support MFM-based deliveries, promote transparency and encourage digitalisation in the long-term interests of the bunker industry and to help further the decarbonisation goals of the shipping industry.”
In a section titled “Lessons from Singapore”, the paper said Singapore has shown that implementing a certified, calibrated MFM system works over the last six years.
“It has been a key factor in transforming one of the world’s most challenging bunker markets (in terms of quantity measurement) into one where quantity measurement concerns (at least from barge to ship) have totally disappeared,” the paper said.
“All this has been achieved with Singapore maintaining its prowess as the world’s largest bunkering location and the cheapest in Asia.”
It added MPA’s success provides a model for the rest of the industry.
“Having said that, it must also be recognised that what Singapore has achieved may be harder to implement in other jurisdictions. Laxer regulatory regimes have, up to now, shown little if any willingness to tackle the fundamental problems of the industry,” it said.
The paper also said Singapore has demonstrated how MFM regulations could be introduced in the industry to support bunker suppliers and buyers with the technical mechanism for monitoring transactions accurately.
“Its all-encompassing approach to regulation has raised industry standards by transforming business practice across its supply chain. Singapore’s regulatory regime provides a solid foundation for the industry that should be emulated globally. The question for the industry is how best to put this into practice,” it said.
It described Singapore’s bunker fuel supply licensing programme as “robust, comprehensive and enforceable.”
The MPA has licensing requirements for all four different levels of service providers: bunker surveyors, bunker tankers, bunker tanker operators and physical suppliers. These requirements can and do change frequently. In addition, all members of the bunker supply chain, as well as others (including vessels taking bunkers), must abide by a common set of standards governing bunkering activity in the port.
These include SS 600, Singapore Standard Code of Practice for Bunkering; SS 648, Singapore Standard Code of Practice for Bunker Mass Flow Metering; SS 524, Singapore Standard Specification for Quality Management for Bunker Supply Chain; and the Singapore MPA’s Standards for Port Limit Bunker Tankers.
“Singapore’s all-encompassing approach to regulation was a rational response to extreme circumstances,” the paper stated.
“Prior to licensing, its bunker supply community’s reputation had been badly tarnished by repeated scandals. Introducing a rigorous regulatory regime has brought much-needed order and clarity. Singapore is now widely regarded as one of the best places in the world to conduct bunkering business. All this has been achieved without damaging the port’s competitiveness.”
The paper concluded that marine fuel suppliers must progressively introduce ISO 22192-compliant MFM systems, not just where it is mandatory, but at other international locations.
“Shipowners and fuel buyers should aim to continue to buy from these suppliers even if headline prices move higher,” it concluded.
The paper was endorsed by industry stakeholders including Lloyd’s Register, Hafnia, Golden Ocean, Cepsa, Metcore International Pte Ltd and Fratelli Cosulich.
Note: The full white paper titled ‘Modernising marine fuel delivery’ can be viewed here.
Related: TFG Marine chartered barge fitted with Metcore certified mass flow metering system
Related: TFG Marine: Mandatory MFM move in Antwerp-Bruges and Rotterdam is a ‘step in the right direction’
Related: TFG Marine: All hands on deck for greater transparency in the bunkering industry
Photo credit: TFG Marine
Published: 10 January, 2024