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West P&I: How to limit your exposure to fuel contamination

Making sure crew members that handle bunker fuels have the right training is vital to reducing the risk of contamination, said Capt. Simon Hodgkinson, Head of Loss Prevention.
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The following article on steps shipowners and operators can take in preventing fuel contamination issues was written by Capt. Simon Hodgkinson, Head of Loss Prevention at mutual marine insurer West P&I; it was recently shared with Singapore bunker publication Manifold Times:

Fuel contamination remains a huge financial and operational risk for shipowners and operators, as the Singapore incident from earlier this year shows. In April, around 200 vessels visiting the port experienced technical issues such as blackouts and problems with or damage to the fuel pump or engine, forcing some to debunker. 

An investigation by the Singapore Maritime and Port Authority has since attributed the contamination to a batch of high sulphur fuel oil with high concentration levels of chlorinated organic compounds. 

At the time of writing, it is too early to determine how much the incident, involving US$120 million worth of affected fuel, will cost shipowners and operators. But with vessels experiencing operational problems – causing major delays to cargo delivery – insurance claims could reach millions of dollars and take several years to resolve. 

With marine fuel easily the biggest operating cost for shipping companies, they cannot afford to make mistakes. Fortunately, there are measures available to them to limit the risks of a widespread fuel contamination. 

Testing can be a crucial tool  

Buying good quality fuel from a reputable source is one top line way to reduce risk, although a supplier’s reputation is no guarantee that all fuel will always meet specification. Yet suppliers with exemplary reputations usually charge more – and it can be difficult to understand the relative reputations of suppliers in a port that a shipowner is not familiar with. The high price of fuel oil could understandably prompt some shipowners to go for cheaper, lower-pedigree alternatives. 

The risk is that operators get what they pay for when choosing a more affordable option – low-grade or even contaminated fuel that will cost them dear in disruption, delays or damage to the vessel. Owners and operators can be forgiven for buying at the lower end of the market to minimise their outgoings when oil prices are so high, but there are ways to cut risks.  

For companies willing to pay more, finding the best product is fairly straightforward. Fuel testing specialists have records on all suppliers around the globe, including data on the quality of their fuel, giving buyers confidence in what they purchase. Continuously updated port-specific fuel standards and compliance data can be obtained by shipowners, and is provided alongside bunker quality alerts to all West members on the Club’s Neptune platform. Guidance on buying quality fuel is also available in this International Maritime Organization document.

Another safeguard for shipping companies is to get the fuel tested by a specialist, which will likely reveal any potential issues or anomalies. If there are concerns, the shipowner or operator should then have a gas chromatography-mass spectrometry (GCMS) test to check for traces of volatile organic contaminants; the most common being chlorinated solvents, phenols and styrene.    

Testing fuel may be an obvious approach, but getting it done within the parameters of the bunker supplier contract is often tricky. Unsurprisingly, the contract is usually heavily weighted in favour of the supplier, with time bar clauses limiting the period for when a shipping company can make a claim. 

Contractual issues 

The set period in the BIMCO Bunker Terms 2018 is 30 days for concerns around fuel quality and 14 days for issues related to quantity. But in some instances, suppliers set very short time limits, possibly seven days or less, within the contract. That period may have already elapsed by the time the shipowner has sent samples off for testing, received the results and then started burning the fuel – after which time it is too late to make a claim. A claim against a fuel supplier is limited by the total cost of supplied fuel and may not cover all potential losses.    

Other contractual issues to be aware of include a financial cap on liability and the quality determination clause, where the shipowner has to respond within a short time to a supplier’s request for joint testing. Failure to do so means the owner must accept the results of the test, even if it was conducted in their absence. 

The circumstances for making a claim change when there is a time-charter in place. In that situation, the charterer is obliged to supply a reasonably well-maintained vessel with fuel that is fit for consumption. At the very least, the fuel should comply with ISO 8217, the global standard for marine fuels used in shipping. But even if it does pass routine inspection, the fuel may contain contaminants that remain undetected without GCMS testing – putting the charterer in breach of the fit for consumption clause.

Should a breach occur, leading to engine problems, the shipowner can pass liability to the charterer, requiring them to debunker and to provide compensation for any physical or financial losses. The key thing here is for the owner to have evidence proving contamination or that the fuel has already caused damage.   

Building crew awareness 

Making sure crew members that handle bunker fuels have the right training is vital to reducing the risk of contamination. Seafarers must understand the basic components and functionality of marine fuel systems and standards. They should also be well versed in the impact of marine fuels on machinery, oil analysis reports and identifying potential problems. Experienced mariners will be able to monitor the vessel’s separators and fuel consumption when fresh fuel is burning, enabling them to spot any issues as early as possible. 

Well-trained seafarers will also know that isolating new fuel in separate tanks until the samples have been tested is critical. Not isolating the new fuel leaves the shipowner in a weak position when making a claim, as combining fuels could be the source of the contamination – something that they may be unable to dispute in a legal claim. Even for off-spec problems, using additives or blending fuels to bring it back on-spec can invalidate the supplier’s contract. 

Bunkering remains an essential, but challenging, practice for shipowners and charterers who will likely face a huge bill if things go wrong. For more advice on how to limit the risks of fuel contamination, West P&I’s Loss Prevention team can provide expert guidance. 

 

Photo credit: CHUTTERSNAP from Unsplash
Published: 25 July, 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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July 22, 2026

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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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July 22, 2026

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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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