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VPS analysis: 2024 highlights importance of bunker fuel quality testing

VPS says over 50 cases of major operational issues were reported, covering main and auxiliary engine cases plus, fuel delivery system related problems, due to factors such as fuel stability and chemical contamination.

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Steve Bee, Commercial Director of marine fuels testing company VPS, on Tuesday (18 February) elaborated on key trends and insights in a 2024 Marine Bunker Fuels Review. 

The following are excerpts of the analysis:

Introduction

2024 saw the continuing evolution and widening of available maritime fuel types and grades, as the global shipping industry continues to gather decarbonisation momentum to reduce its emissions to meet current and future legislation targets. Existing CII and EEXI requirements, plus EU ETS legislation, saw increasing demand for additional testing, lower-carbon fuels, data and digitalisation solutions across the shipping sectors.

As the leading maritime decarbonisation testing and advisory services provider, VPS continued to be at the forefront of marine fuels and lubricants analysis, utilising our experience, expertise and innovative approach, to support the drive for a more sustainable shipping fleet.  

Throughout the year, VPS witnessed further fuel quality issues with VLSFOs in terms of, sulphur compliance, cold-flow properties, water and cat-fines. In addition, MGO suffered from cold-flow, flash point and FAME off-specifications.

Biofuels usage saw a continuing increase in demand from the market, leading to increasing queries regarding their fuel management and their “fit-for-purpose” as a drop-in marine fuel. This in turn called upon VPS to provide answers and solutions to customers, utilising our extensive knowledge and understanding of biofuels and their associated test parameters.

The launch of the new revision of the international marine fuel quality standard ISO8217:2024 was very much welcomed by the industry. This new revision saw the specification tables increase from two to four, with the inclusion of a <0.50% Sulphur specification and also biofuels in the form of FAME, HVO, GTL and/or, BTL.

2024 witnessed very strong newbuild contracting (2,765 ships of 124.2m GT), the highest in tonnage terms since 2007 (173.4m GT). With 820 of these vessels being “alternative fuel capable”, showing the fuelling transition is still very much in focus.

The Marine Fuel Mix

Across 2024, the fuel mix with respect to samples received for testing in VPS laboratories, equated to more than 65 million MT, which averages at 5.4 million MT of marine fuels per month. VLSFO was the most popular marine fuel with 52% of the fuels used, followed by 32% HSFO, 14% MGO, 1% ULSFO and 1% Biofuels. Regarding biofuels usage, the samples tested by VPS equated to an increase from 558,000 MT in 2023 to 800,000MT in 2024.

VPS Bunker Alerts

Bunker Alerts highlight short term quality fuel quality issues identified by VPS, for a specific test parameter of a specific fuel grade/type in a specific port. The service provides valuable information to customers, to assist in avoiding potentially problematic fuel types in a highlighted port or region, to further protect the customer’s asset and crew.

In 2024, VPS issued 27 Bunker Alerts, one less than in 2023. The 2024 Bunker Alerts included the major fuel grades, i.e. VLSFO, HSFO and MGO, 8 different test parameters and 13 ports.

46% of the 2024 Bunker Alerts were for VLSFO fuels, followed by 32% for HSFO fuels and 21% for MGO. The most common problematic parameter was Sodium (9), accounting for 33% of the Bunker Alerts, followed by Flash Point (8) accounting for 30% of the Bunker Alerts.

Singapore (30%) and ARA (26%) were the regions/ports most frequently requiring a Bunker Alert to be issued. But as these are the two busiest bunkering regions, it is not too surprising.

VLSFO Fuel Quality

As the most used marine fuel type, VLSFO accounts for more than half of the fuels tested by VPS. In terms of quality, VLSFO had an off-specification rate of 5.4% in 2024. Of the 5.4% VLSFO off-specifications, Europe provided the highest level of off-specification VLSFOs in both 2024 (11.9%) and 2023 (7.9%). North America provided the next highest level of off-specification VLSFO with 7% of fuels tested exhibiting at least one off-specification parameter in 2024 and 4.4% in 2023. South America had the third highest VLSFO off-specification rate with 5.9% off-specs versus 3.8% in 2023.

Sulphur is the most common off-specification parameter of VLSFOs, accounting for 44% of VLSFO off-specs in 2024 and 28% in 2023. When it comes to looking at all VLSFOs tested, 0.5% had a sulphur content >0.53%, whilst 1.9% of samples tested were between 0.50%-0.53% sulphur and the remaining 97.6% had a sulphur content of <0.50%.

Pour Point was also a common off-specification parameter for VLSFOs with 13% of VLSFOs off-specs relating to this parameter, a decrease against the 16% level witnessed in 2023.

The importance of the additional cold-flow test of Wax Appearance Temperature (WAT) and Wax Disappearance Temperature (WDT), was further highlighted in 2024 with 57% of VLSFOs exhibiting WAT of 31-40ºC and 11% having WAT between 41-50ºC. 54% of VLSFO samples had a WDT of 41-50ºC, with 20% having a WDT of >50ºC. VLSFOs cold-flow properties are a definite concern with wax precipitating from the fuel at temperatures way in excess of 10ºC above the pour point, potentially causing numerous operational problems such as filter and pipework blockages.

2024 saw a very similar distribution of cat-fines results across all VLSFOs tested compared to 2023, with only 0.6% of samples showing cat-fine levels of greater than 60ppm and hence off-specification. 19% of all VLSFOs showed a cat-fine level greater than 40ppm. Frequent checking of purifier efficiency via VPS’ Fuel System Checks (FSC) service is a highly recommended proactive safeguard in respect to increased cat-fines within VLSFOs.

HSFO Fuel Quality

HSFO represents almost 32% of all bunker samples received by VPS for testing, indicating a relatively high level of scrubber usage onboard vessels today. 10.4% of HSFOs tested in 2024 were off-specification for at least one test parameter. In terms of regional HSFO off-specifications, South America accounted for 29% of off-specs, compared to 30.5% in 2023. Second highest off-spec region was Europe, with 21% in 2024 compared to 21.4% in 2023 and North America was third with 11.5% of HSFO off-specs in 2023, compared to 9.5% in 2023.

As usual, viscosity and density were the two most common HSFO off-spec parameters in 2024, with 54% of the off-spec attributed to viscosity and 21% to density, compared to 43% and 33% respectively in 2023. Water was the third most frequent HSFO off-specification parameter in 2024, with 13% off-spec level compared to 10.5% in 2023. 

Whilst cat-fines accounted for 3% of HSFO off-specs in 2024, this was lower than the 2023 level of 4%. Again, like VLSFOs it highlights the importance of Fuel System Checks (FSC) to protect the engine from potential damage from this corrosive contaminant, by improving purifier efficiency. 20% of HSFOs had a cat-fine level of >40ppm in 2024.

Summary

With over 50 reported cases of major operational issues, covering main and auxiliary engine cases plus, fuel delivery system related problems, due to fuel stability, sludging, cat-fines, cold flow properties and chemical contamination, 2024 once again highlighted the importance of bunker fuel quality testing, as a proactive means to protect vessels, their crew and the environment. With additional tests, currently not included within ISO8217, providing further vital information in achieving heightened levels of protection.

Biofuels usage continued to increase in demand and importance, as ship owners and operators look to achieve improvements through CII, EEXI, as well as looking to counter the financial impact of the EU ETS scheme.

The revision of ISO8217 released on 30th May 2024, was a welcomed improvement on previous revisions, but still not a fully comprehensive solution in vessel, crew and environmental protection. Therefore, additional tests continue to hold an important role in fuel management.

Methanol demand and usage will also grow, with a rapidly growing order book for methanol-powered vessels. Yet, methanol also comes with a host of fuel management challenges, with testing playing a major role in ensuring quality and fit-for-purpose considerations.

So, 2025, suggests another year of widening marine fuel types and grades coming to market, coupled with their growing fuel management considerations.

Note: The full copy of VPS’ 2024 Marine Bunker Fuels Review can be viewed here

 

Photo credit: VPS
Published: 19 February, 2025

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Bunker Fuel

TMD Energy becomes first Malaysian bunker supplier to list on NYSE American

Straits Energy Resources’ subsidiary announces that its shares have been listed on 21 April, becoming the first Malaysian marine bunker supplier to achieve a listing on a major US exchange.

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TMD Energy Limited (TMD Energy), a Malaysia and Singapore-based provider of integrated marine bunkering services and a Straits Energy Resources Berhad (SER) subsidiary, on Tuesday (22 April) announced that its shares have been listed on 21 April and began trading on the NYSE American under the ticker symbol “TMDE”.

Dato’ Sri Ron Ho Kam Choy, Chairman, Executive Director, and Chief Executive Officer of TMD Energy, said: “We are proud to become the first Malaysian marine bunker supplier to achieve a listing on a major US exchange, reinforcing our position as one of the industry’s leading players.

“Leveraging Malaysia’s strategic location along major shipping routes including the Straits of Malacca and the South China Sea, as well as resilient demand for bunker fuel in the region and globally, we are well positioned for further expansion. On top of that, TMD Energy is also the first Malaysian company to list on the NYSE American.

“Our listing in NYSE American will help us to enhance our international profile, expand our reach, capture new markets, and deliver sustainable, higher returns to our shareholders.”

TMD Energy’s share price opened at USD 3.26 on Monday, rising to an all-time high of USD 4.12 on its market debut before closing at USD 3.63, which was 11.69% higher than its initial public offering (IPO) price of USD 3.25 per share. This gave the company a market capitalisation of USD 83.85 million (equivalent to approximately MYR 367.2 million) on its first day as a publicly listed company.

TMD Energy’s IPO was priced at USD 3.25 per share, and total gross proceeds (excluding the over-allotments) before deducting underwriting discounts and other related expenses were approximately USD 10.08 million (equivalent to approximately MYR 44.13 million). 

Proceeds from the IPO will be used for the purchase of cargo oil; defraying listing expenses; and working capital and other general corporate purposes.

The company has granted the underwriter a 45-day option to purchase up to an aggregate of 465,000 additional shares to cover over-allotments at the IPO price, If the underwriter exercises their option to purchase the additional shares in full, the total gross proceeds before deducting underwriting discounts and other related expenses from the offering are expected to be approximately USD 11.59 million.

Dato’ David Yoong Leong Yan, Executive Director of TMD Energy, said: “Our debut on the NYSE American is a key milestone in our journey of growth. While continuing to drive strong organic growth, as part of our strategic growth initiatives, we remain focused on identifying and pursuing strategic mergers and acquisition opportunities that align with our long- term vision and strengthen our regional presence.”

Manifold Times previously reported SER announcing its proposal to list its oil bunkering segment via the listing and quotation of the ordinary shares in its 76.68%-owned subsidiary, TMD Energy, on the New York Stock Exchange American (NYSE American).

TMD Energy and its subsidiaries (TMD Energy Group) are mainly involved in marine fuel bunkering services specialising in the supply and marketing of marine gas oil and marine fuel oil to various types of ships and vessels at sea. In addition, the company provides vessel chartering services and vessel management services.

TMD Energy Group operates in 19 ports across Malaysia, with a fleet of 15 well-maintained bunkering vessels with capacities ranging from 540 dwt to 7,820 dwt, of which nine are double-bottom and double-hull vessels with an average cargo-carrying capacity of 4,200 dwt each. Its customers include ship owners and operators, shipping lines, logistics and freight companies, as well as oil and gas traders or brokers. 

TMD Energy’s growth strategy includes expanding its market presence across Southeast Asia, growing its bunkering fleet, providing ship management services to external customers and diversifying its fuel offering to include eco-friendly alternative fuels such as biodiesel.

TMD Energy is part of SER, a Fortune Southeast Asia 500 company listed on the ACE Market of Bursa Malaysia Securities. 

Related: Malaysia: Straits Energy plans to list subsidiary TMD Energy on NYSE American

 

Photo credit: TMD Energy
Published: 22 April, 2025

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LNG Bunkering

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

After departing from Saijo Shipyard, LNG fuel will be supplied directly to “Verde Heraldo” through shore-to-ship bunkering at Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

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New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

Mitsui OSK Lines (MOL) on Friday (18 April) said the naming and delivery ceremony for the LNG-fuelled Capesize bulker, which MOL ordered for JFE Steel Corporation, was held at the Saijo Shipyard of Imabari Shipbuilding. 

The vessel was named the Verde Heraldo, which means “Green Pioneer” in Spanish, by JFE Steel President and CEO Masayuki Hirose. MOL executives including President & CEO Hashimoto were also on hand for the ceremony.

After departing from Saijo Shipyard, LNG fuel will be supplied directly to the vessel through shore-to-ship bunkering at the Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

The Verde Heraldo will sail under long-term transport contracts to supply raw materials for JFE Steel's mills, providing both reduced environmental impact and safe and reliable marine transport services.

About Verde Heraldo

LOA: 299.99 m
Breadth: 50.00 m
Draft: 18.436 m
Deadweight tonnage: 210,321 tonnes
Shipyards: Imabari Shipbuilding and Nihon Shipyard 

 

Photo credit: Mitsui OSK Lines
Published: 22 April, 2025

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Business

ENGINE: Adverse weather keeps bunker operations suspended in Zhoushan’s OPL area

Bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended due to rough weather; some suppliers expect to fully resume operations in OPL area by 22 April.

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Zhoushan Port Anchorage

Bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended since Saturday due to rough weather, according to a source on Monday (21 April). 

However, bunker operations have resumed this morning at Zhoushan’s more sheltered Xiushandong anchorage and the inner anchorage of Mazhi.

The port is currently experiencing strong wind gusts of 24–27 knots and swells approaching one meter.

Several suppliers expect to fully resume bunkering operations in the OPL area by tomorrow (22 April), the source said.

By Tuhin Roy

 

Photo credit: Manifold Times
Published: 22 April, 2025

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