This is a legacy page. Please click here to view the latest version.
Tue 15 Aug 2017, 17:51 GMT

Cross-industry group in talks to plug bunker tanker loadings 'loophole'


Use of MFMs to measure volumes loaded onto bunker tankers would 'address a missing link in supply chain integrity', says IBIA.



The International Bunker Industry Association (IBIA) said on Tuesday that it is involved in talks with various industry bodies in a bid to resolve what it refers to as a "significant loophole in the bunker supply chain".

The association highlighted the potential for variations in delivery volumes between Singapore oil terminals and bunker tankers - an area of concern that affects suppliers and bunker craft operators, but which falls outside the MPA's jurisdiction.

IBIA noted that "bunker tankers have to accept the delivery volume recorded by the terminals", and that it has been informed that mass flow meter (MFM)-equipped bunker tankers have recorded discrepancies which put bunker craft operators at a disadvantage.

As a solution, IBIA suggests that the use of approved MFMs to measure volumes being loaded onto bunker tankers from terminals would "address a missing link in supply chain integrity".

IBIA is therefore supporting a solution which would apply the respective MPA-approved MFM system bunker tanker readings for oil terminal loadings.

A cross-industry group, including IBIA, SPRING Singapore, the Singapore Shipping Association and the Singapore Chemical Industry Council is said to be in dialogue with relevant bodies governing the Singapore terminals in an effort to resolve the issue.

Supporting efforts to protect MFM integrity

IBIA also stressed that it believes the benefits achieved from adopting the mandatory use of MFMs for marine fuel oil deliveries in Singapore must be protected by effective enforcement.

The Singapore regulation that came into effect on January 1, 2017, was widely perceived to be a significant step forward in promoting greater transparency and ensuring the accuracy of delivered tonnage in the port, but, as today's cancellation of Panoil Petroleum's bunker craft operator licence highlights, it has not come without difficulties.

In March, the harbour craft licences of five bunker tankers operated by Panoil were temporarily suspended while authorities investigated irregularities found on their piping fixtures.

Today, the Maritime and Port Authority of Singapore (MPA) confirmed that it has revoked the bunker craft operator licence of Panoil after checks revealed that there had been unauthorised alterations made on the pipelines of the bunker tankers between the MFMs and the flow boom on board the five suspended tankers.

The MPA said these alterations had allowed bunker fuel measured by the MFM to be siphoned out, undermining the accuracy of the readings from the MFM system.

As a result, Panoil - ranked Singapore's 10th-biggest supplier last year - will no longer be allowed to operate as a bunker craft operator at the Asian port.

"IBIA continues to support vigilance and firm action by the Maritime and Port Authority of Singapore (MPA) and other relevant authorities to deal with suspected irregularities, and considers it important that all proven cases of abuse of the MFM protocol are dealt with as swiftly as possible in order to retain the confidence of the global shipping community in the application of the MFM regulations," IBIA said.

"IBIA is confident that MPA will continue to take appropriate measures to punish and discourage malpractices in this area so as to not harm Singapore's hard fought reputation as one of the world's leading and most reliable bunker ports," IBIA added.


Closing ceremony of vessel with builder’s hull no. 0315874. LNG dual-fuel crude tanker handed over to Capital  

Jiangsu New Times Shipbuilding delivers the 155,500-DWT LNG dual-fuel crude oil vessel Amor.

Lowina Lundstrom, Gasum. Gasum names Lowina Lundström as vice president, biogas  

Former EIT InnoEnergy executive joins Gasum's management team to lead biogas business development from 1 December.

PIL and Huanghai Shipbuilding contract signing. PIL orders seven methanol-ready feeder vessels from Huanghai Shipbuilding  

Singapore carrier's 1,400-TEU newbuilds will boost intra-Asia capacity and support its 2050 net zero target.

MPA and Qingdao Port work plan signing ceremony. Singapore and Qingdao sign work plan to advance green and digital shipping corridors  

MPA and Shandong Port Group’s Qingdao Port have agreed to pursue methanol bunkering pilots and data-sharing initiatives between the two ports.

Delfin Midstream FLNG unit render. Wärtsilä to supply dual-fuel engines and thrusters for Delfin Midstream's FLNG vessel  

Finnish technology group lands propulsion order for first floating LNG vessel built for US Gulf export project.

Uni-Fuels Logo. Uni-Fuels advertises for senior bunker trader in Dubai  

Nasdaq-listed firm recruiting for its trading team as it aims to drive growth.

Mineral Europa vessel. Green ammonia bunkered to ammonia-powered bulk carrier in Australian first  

Pilbara Ports, Fortescue and CMB.Tech complete a ship-to-ship ammonia transfer at Port Hedland, supporting plans for a clean fuel bunkering hub in the region.

Sea Change II vessel render. US Coast Guard agrees design framework for hydrogen-fuelled New York ferry  

Switch Maritime and Incat Crowther reach regulatory agreement for a 150-passenger hydrogen fuel cell-electric fast ferry intended for New York's waterways.

Auto Advance vessel. UECC fits WE Tech hybrid power systems on newbuild ro-ro vessels  

Norwegian short-sea operator says battery and shaft generator technology from WE Tech Solutions has cut fuel use and auxiliary engine reliance on three newbuilds.

Terra Clove vessel. Envision's green ammonia used to bunker world's first VLAC  

Chinese energy group supplies vessel owned by Eastern Pacific Shipping as it links production and marine fuel supply chains.


↑  Back to Top