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.


ZIM LNG container vessel. Los Angeles and Long Beach identify LNG and methanol as key near-term marine fuels  

Joint feasibility study maps out demand projections and infrastructure needs to support cleaner shipping fuels at San Pedro Bay

Alexander Treff, Christiania Energy, Christiania Energy welcomes student assistant to Copenhagen office  

Alexander Treff joins marine fuels firm while studying international business at Copenhagen Business School.

Carlotta Cosulich vessel. Cosulich Marine Energy takes delivery of third methanol-ready bunker tanker  

Carlotta Cosulich joins the group’s fleet, bringing its four-vessel bunkering programme closer to completion.

Rendering of a Wallenius Wilhelmsen vessel Wallenius Wilhelmsen orders four dual-fuel PCTCs, extends fleet renewal programme  

Shipping firm signs for LNG-fuelled car carriers with options for eight more, with deliveries from 2030.

Maizuru Kazenomai vessel. MOL takes delivery of Wind Challenger-equipped LNG dual-fuel coal carrier  

LNG dual-fuel coal carrier with wind-assisted propulsion expected to cut CO₂ emissions by up to 30%.

Farrie Russ vessel. Ernst Russ takes delivery of second methanol-ready tanker  

Farrie Russ joins Ernst Russ’s fleet as the shipowner diversifies into tanker shipping.

Aerial view of the Port of Valencia. Valenciaport launches tender for second substation to double port's power capacity  

The Port of València's new €18.7m substation will support onshore power supply systems and growing terminal electricity demand.

Aerial view of harbour in Karaikal, Puducherry, India Study maps phased pathway for India to build a regional alternative marine fuel hub  

India could compete regionally across biofuels, methanol and ammonia if ports improve efficiency and reduce costs, study finds.

SEA-LNG and MAMII sign MoU. SEA-LNG and MAMII formalise technical partnership ahead of IMO methane talks  

Two organisations sign MoU to strengthen evidence-based input on methane emissions at the IMO.

China Zorrilla vessel. Battery-powered ferry China Zorrilla enters service in South America  

Ro-pax vessel now operating between Argentina and Uruguay, powered by more than 41 MWh of Corvus Energy battery systems.


↑  Back to Top