A part of Watch Media

ShippingWatchFriday3 February 2023

  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Search
  • Log in
  • Latest
  • Search
  • Log in
  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
16/03/2015at 13:59

Singapore will check the marine gas oil trade

The sulfur regulations lead to growing demand for marine gas oil, which is why the world's biggest bunker hub, Singapore, is working to introduce mass flow meters on the port's gas barges, Dr. Parry Oei, Director (Port Services), Maritime and Port Authority, tells ShippingWatch.
Photo: Damian Dovarganes/AP/POLFOTO/arkiv
BY KATRINE GRØNVALD RAUN

The heavy fuel oil trade in the world's largest bunker hub, Singapore, has taken center stage in recent years as the Maritime and Port Authority of Singapore (MPA) is targeting quality and delivery fraud by introducing mandatory use of mass flow meters.

In the coming years this could also start to include barges carrying marine gas oil, which will in time be required to install mass flow meters, according to the port authority.

Singapore adopts mandatory bunker control

Following the new ECA zones in Northern Europe that came into force on January 1st, the demand for marine gas oil has increased and is expected to increase significantly in the years to come, as the fuel, one of several alternatives fuels, will be the most coveted fuel alternative at first.

"We have been receiving feedback from bunker buyers requesting MPA to consider mandating the use of the MFM (Mass Flow Meters) for Marine Gas Oil (MGO) as well," as they foresee the Marine Gas Oil demand will pick up, Dr. Parry Oei, Director (Port Services), Maritime and Port Authority, tells ShippingWatch.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

"We will be requiring all gas barges to have the mass flow meters installed on gas barges, once we complete the current exercise to install the meters on fuel oil barges."

Speaking to sellers

Singapore is currently the only major bunkering port to have introduced mandatory requirements for bunker suppliers operating in the port to install mass flow meters on their bunker vessels ahead of 2017. An initiative that has been praised from numerous sides in the bunker industry, as it will help secure bunker deliveries that are otherwise often subject to cheating and fraud in terms of volumes, which can cost carriers millions of USD.

MPA is currently in talks with suppliers of mass flow meters, as the smaller barge used for gas oil needs a similarly smaller mass flow meter.

Do you want to stay up to date on the latest developments in International shipping? Subscribe to our newsletter – the first 40 days are free

"We’re talking to sellers in order to find out if they can do it, and hopefully barges with marine gas oil in Singapore will also be equipped with mass flow meters," says Dr. Parry Oei.

Fraud in the industry

Singapore is known for its tough stance on corruption, and the country opted for a similar approach years ago in its dealings with the bunker industry - an industry that often involves bigger or smaller covert business deals and cheating on deliveries. In January 12 people were arrested by the coast guard in Singapore on suspicions of illegal sale of MGO, reported Seatrade Global, and in February the MPA barred two bunker suppliers from operating in the port, including Tankoil Marine, which was collaborating with bankrupt OW Bunker's subsidiary Dynamic Oil Trading.

During a routine control of the two companies, the authorities discovered discrepancies and false statements in the registers on board the bunker tankers. The companies had also in some cases delivered fuel without permission from the authorities, said the MPA.

OW Bunker's key partner banned in Singapore

As the world’s largest bunker hub, with 60 licensed bunker suppliers currently operating in the port, Singapore is highly dependent on shipping, and the authorities did not want carriers to leave the port with bad experiences and wanted to ensure a "painless process," says the Dr. Parry Oei on the decision to introduce mass flow meters.

"With high bunker prices, there are many players who may act inappropriately. MPA decided to leverage on technology to mitigate bunkering malpractices in the industry. For example, the push for the use of the Mass Flow Metering System for bunker custody transfer would allow accurate readings of the bunkers to be delivered."

Norden: Significantly lower bunker quality in last 10 years

Most ports seem to have problems with either quality or fraud in terms of bunker. So far Singapore is the only one that has introduced mandatory use of mass flow meters, while Rotterdam is following the example with interest. The actual size of the problem varies depending on whom one asks.

"In Singapore, the authorities work closely with the industry to ensure that the quality and quantity of bunker are delivered transparently and efficiently," says Dr. Parry Oei.

Bunker fraud leads to mandatory controls

"World's biggest bunker market is the world's toughest" 

These are the biggest bunker companies in Singapore

CEO: New bunker requirements will break suppliers 

Related articles:

  • Photo: Insatech

    Bunker fraud leads to mandatory controls

    For subscribers

  • Photo: Ed Wray/AP/POLFOTO/arkiv

    These are the biggest bunker companies in Singapore

    For subscribers

  • Photo: Insatech

    CEO: New bunker requirements will break suppliers

    For subscribers

Sign up for our newsletter

Stay ahead of development by receiving our newsletter on the latest sector knowledge.

!
Newsletter terms

Front page now

Foto: Staff/Reuters/Ritzau Scanpix
Logistics

DSV sees one advantage of downturn: It will be cheaper to buy competitors

Acquisitions are decisive for growth at logistics group DSV, and with prospects of declining freight volumes, the prices of acquisitions will fall. DSV will use this to its advantage, according to CEO Jens Bjørn Andersen.
  • DSV books a much improved 2022 result – but a new reality now awaits
  • DSV aims to grow further via acquisitions with market consolidation still very far away

For subscribers

Hans Lind Dollerup er ny managing director for Dan-Bunkerings europæiske forretning. Selskabet har også hyret en ny kommerciel direktør i Europa. | Foto: Dan-Bunkering
Suppliers

Dan-Bunkering hires new management for Europe

For subscribers

Foto: Rebecca Naden/Reuters/Ritzau Scanpix
Tanker

Euronav retains substantial dividend due to merger strife

For subscribers

Foto: A.p. Møller – Mærsk, Verity/pr
Logistics

Maersk deploys drones in US inventories

For subscribers

Foto: Zhang Ke/AP/Ritzau Scanpix
Offshore

There aren't enough ships to install giant wind turbines across Asia

For subscribers

Genrebillede. | Foto: Lee Jae Won/Reuters/Ritzau Scanpix
Logistics

Expeditors hit by claim from robot company after extensive cyberattack

For subscribers

Further reading

Jeb Bush (left) is the brother of former US president George W. Bush (right). He is former governor of Florida and ran for nomination as the presidential candidate of the Republican Party in 2016. He lost, however, to later president Donald Trump. | Foto: Alex Brandon/AP/Ritzau Scanpix
Regulation

Jeb Bush levels sharp criticism at candidate for IMO leadership

Panama is not worthy to lead the UN’s maritime organization, as the country protects ships violating sanctions against Iran, argues Jeb Bush, brother of former US president George W. Bush.

For subscribers

Foto: Piroschka Van De Wouw/Reuters/Ritzau Scanpix
Ports

Port of Rotterdam expects regular bunkering of methanol by the summer

Come July 2023, methanol will be bunkered regularly by the Port of Rotterdam. Until now, methanol has only been bunkered by way of experiment.

For subscribers

Foto: Mærsk Mc-kinney Møller Center for Zero Carbon Shipping
Regulation

Mærsk Center for Zero Carbon hires new executive from port company

Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping recruits new executive profile from major port company.

For subscribers

Latest news

  • Maersk deploys drones in US inventories – 2 Feb
  • Expeditors hit by claim from robot company after extensive cyberattack – 2 Feb
  • DSV sees one advantage of downturn: It will be cheaper to buy competitors – 2 Feb
  • Euronav retains substantial dividend due to merger strife – 2 Feb
  • Dan-Bunkering hires new management for Europe – 2 Feb
  • Mærsk Center for Zero Carbon hires new executive from port company – 2 Feb
  • Stolt-Nielsen expects good times ahead for chemical tanker after new profit – 2 Feb
  • There aren't enough ships to install giant wind turbines across Asia – 2 Feb
  • Creditors in crisis-stricken Dof request bankruptcy proceedings – 2 Feb
  • DSV books a much improved 2022 result – but a new reality now awaits – 2 Feb
See all

Jobs

  • Senior Lead, Human Sustainability at Sea

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Chartering Manager for Lauritzen Bulkers A/S

  • Foundation Package Manager - Offshore wind industry

  • Financial Controller for International Shipping Company

  • Fleet Manager

  • Junior Finance Business Partner - offshore wind industry

  • Senior Financial Controller

Jobs

  • Senior Lead, Human Sustainability at Sea

  • Copenhagen Shipping Company is hiring a skilled cargo broker

  • Chartering Manager for Lauritzen Bulkers A/S

  • Foundation Package Manager - Offshore wind industry

  • Financial Controller for International Shipping Company

  • Fleet Manager

  • Junior Finance Business Partner - offshore wind industry

  • Senior Financial Controller

See all jobs

Colophon

ShippingWatch
Search

Sections

  • Carriers
  • Logistics
  • Regulation
  • Suppliers
  • Offshore
  • Ports
  • Sitemap
  • RSS feeds

Editor

Tomas Kristiansen

tk@shippingwatch.dk

Tel.: +45 3330 8360

Editor-in-chief

Anders Heering

Publisher

JP/Politiken Media Group Ltd

Advertising

annoncering@infowatch.dk

Tel.: +45 7077 7445

Advertising

Job Advertising

job@infowatch.dk

Tel.: +45 7077 7445

Jobs

Subscription

Try ShippingWatch or get an offer for a subscription meeting the exact needs of you or your company.

shippingwatch@infowatch.dk

Tel.: +45 7077 7445

Learn more about subscriptions here

Address

ShippingWatch

Rådhuspladsen 37

1785 Copenhagen K, Denmark

Tel.: +45 3330 8360

Guidelines

  • Privacy Policy

Copyright © ShippingWatch — All rights reserved

Microsoft is in the process of discontinuing Internet Explorer – and so are we.
For a better experience, we recommend using one of the following browsers.

Kind regards,
ShippingWatch

Google ChromeMozilla FirefoxMicrosoft Edge