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.


IBIA logo. IBIA to host ethanol marine fuel workshop in New York  

Limited-capacity session will examine ethanol’s commercial, technical and regulatory prospects as a shipping fuel.

Blue Whale NxtGen Energy battery system. Corvus Energy’s Blue Whale NxtGen battery system gains DNV type approval  

DNV approval confirms the safety and performance of Corvus Energy’s large-scale battery system for ferries, cruise ships and offshore vessels.

Jessie Ng, PMG Energies. PMG Energies appoints Jessie Ng as bunker trader in Singapore  

Bunker firm adds experienced trader to Singapore team.

Hapag-Lloyd vessel Seaspan Amazon during a bunkering operation. Hapag-Lloyd completes simultaneous-operations biomethanol bunkering in Busan  

Container line bunkers ISCC EU-certified biomethanol from Goldwind during SIMOPS, advancing its 2024 supply agreement.

Launching ceremony of Baraka-9. Pinnacle Marine launches B100-compatible harbour craft Baraka-9 for Trans Wave  

Singapore shipbuilder adds another biodiesel-ready vessel to a fleet renewal programme aimed at harbour craft decarbonisation.

Rune G. Kongstein, Glander International Bunkering. Glander International Bunkering creates European commercial director role, appoints Rune Kongstein  

Marine fuels firm is aligning its European operations under a single commercial leadership structure.

VPS logo. VPS to run marine fuel management course in the Netherlands this November  

Two-day training programme covers fuel quality, handling and decarbonisation regulations.

International Chamber of Shipping (ICS) logo. Wind-assisted propulsion 'no longer just a concept', ICS panel says  

Shipowners weigh wind power as a practical, low-risk route towards decarbonisation targets.

Hoegh Starlight vessel connected to shore power. Höegh Autoliners vessel connects to shore power for the first time in Europe  

Höegh Starlight used 11 kV shore power in Zeebrugge, allowing it to switch off its auxiliary engines while alongside.

ROC logo. Chinese shipbuilder ROC signs deal for up to eight methanol-ready CSOVs  

Contract signed with European shipowner for vessels designed for offshore wind farm maintenance work.


↑  Back to Top