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VPS: Rising fuel quality issues linked to rising fuel costs

Pearson Correlation Coefficient value of 0.701 shows rise of crude oil price leading to reduced bunker fuel quality and an increase of marine fuel off-specs.

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Steve Bee, Group Commercial & Business Development Director of marine fuels testing company VPS, recently shared his thoughts with Singapore bunkering publication Manifold Times on the relationship between the price of crude oil and bunker fuel quality. 

13 June, 2022

Over the past few years, the world appears to have moved from one crisis to the next. Most recently, the COVID pandemic causing huge global disruption and restrictions to people and businesses, followed by the recent Russia-Ukrainian conflict and concerns over the innocent loss of lives and the greater worry of potential escalating conflict.

For global shipping, both of these events have given rise to many additional challenges to which ship owners and operators have either had to overcome or continue to tackle.

One key concern for the industry is the escalating cost of fuel due, in the main,to the Russian-Ukrainian war, an issue which is also impacting upon every walk of life. For shipping, the cost of fuel has always been the major cost in relation to every single voyage and the demand for good quality fuel, at competitive prices, remains paramount, especially in these times of significantly increased costs.

However, in a recent in-depth study carried out by VPS during Q1-2022, a strong correlation between crude oil price and bunker fuel off-specs was identified. Based on data covering the past 10 years and using a huge dataset of our 1.2 million fuel samples tested during this period, a correlation can be shown, which is graphically illustrated in Graph 1:

VPS: Rising fuel quality issues linked to rising fuel costs

The relationship between the price of crude oil and bunker fuel quality (measured by the number of off-spec samples) was measured using the Pearson Correlation Coefficient giving a value of 0.701, indicating a strong correlation. This correlation shows that an increase in crude oil price will result in reduced bunker fuel quality and an increase in marine fuel off-specs.

In recent weeks, VPS has seen an increase in the number of Bunker Alerts (BAs) issued corresponding with crude oil price, with a 60% increase this year versus the corresponding period in 2021. It should be noted that VPS only issues a BA when we have an off-spec parameter for 3 vessels within one week for the same port and parameter. The BAs that we have issued in 2022 have been across a range of 8 different ports for 9 different parameters and for the different bunker fuel types of VLSFO, HSFO and MGO. This suggests a general reduction in fuel quality across geographies caused by different factors and fuel types.

A good example of the type of -spec parameter that we have identified resulted in a major marine fuel quality issue identified in Singapore. This quality issue was in relation to chemical contamination of HSFO fuel delivered to over 200 vessels, which caused major operational problems to approximately 80 vessels. VPS led the way in identifying and quantifying the specific contaminants as several chlorinated hydrocarbons and assisted its customers in overcoming the subsequent issues of receiving and in many cases burning this affected fuel. The fuel had been supplied by two suppliers, with one actually providing the other with this contaminated product. It is alleged the first supplier blended a contaminated cutter stock to HSFO fuel, prior to it being sold.

VPS can only stress that the asset protection provided by proactive fuel management and testing has never been so important in protecting vessels from damage. Therefore, ISO8217 testing, plus chemical screening by GCMS-Headspace analysis, additional coldflow properties testing, such as wax appearance temperature (WAT) testing and routine fuel system checks (FSC), can provide even greater added-value to ship owners and operators, at a time of great uncertainty and increased risk, with respect marine fuel purchase and usage. 

Related: VPS provides update on bunker fuel contamination cases in Singapore
Related: VPS identifies potential bunker fuel contamination crisis unfolding at Singapore

 

Photo credit: VPS
Published: 14 June, 2022

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Winding up

Singapore: High Court to hear Norvic Shipping Asia winding up application on 31 July

Application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to Government Gazette notice.

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An application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to a Tuesday (21 July) notice on the Government Gazette.

It noted the winding up application is directed to be heard before the Judge sitting in the General Division of the High Court at 10am on 31 July.

Any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose.

A copy of the winding up application will be furnished to any creditor or contributory of the company requiring the copy of the winding up application by the solicitors of the applicant’s, Oon & Bazul LLC, on payment of the regulated charge for the same.

The Applicant’s address is Hiridostraat 5, Gebouw Prismatrium, 1101CW Amsterdam, The Netherlands.

The Applicant’s solicitors are Oon & Bazul LLC of 103 Penang Rd, #04-04/05/06 Singapore 238467. 

Queries on the winding up application may be directed to the following email addresses: [email protected] and [email protected].

 

Photo credit: Manifold Times
Published: 22 July, 2026

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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.

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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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