Bunker Industry in Singapore

Bunkering may be defined as the process of supplying fuels to the ships for their own use. Singapore is considered to be one of the largest and most important bunkering port in the world. MPA Singapore is the authority which is involved in developing and promoting Singapore as a premier global hub port and an international maritime centre, and to advance and safeguard Singapore's strategic maritime interests.

Bunkering is one of the essential industry for Singapore, so bunker supplying industry is highly regulated by the Maritime and Port Authority of Singapore. All companies such as bunker suppliers, bunker and tanker surveyors who are involved in bunkering business are required to get licence from MPA. The Singapore Shipping Association (SSA) takes a very serious view of recent allegations of malpractices by the bunkering industry in Singapore. As a major port of call, Singapore supplies more than 43 million tonnes of bunkers. This is based on more than 37,000 vessel calls at Singapore for bunkers annually. Bunker suppliers When deliver bunkers to receiving vessels in Singapore, they are also required to comply with the Code of Practice for Bunkering – SS 600:2008 which is a set of bunkering procedures developed by the SSA and gazetted by the Singapore government. Bunker buyers and receiving vessels too, are required to comply with the SS 600 if they lift bunkers in Singapore. Additionally, the bunker tankers used for the delivery of bunkers have to comply with the Standards for Port Limit Bunker Tankers and have to go through a satisfactory survey before a Bunker Craft Operator Licence can be issued. Bunker suppliers are also licensed and are required to have a Quality Management for Bunker Supply Chain (Singapore Standard SS524:2006) in place, and this is subjected to an annual audit. In addition, these regulations in place are religiously enforced by the MPA. 

Sampling procedures in Singapore:

Chief engineers should check and ensure that the bunker code sampling procedures are carried out. Key steps include:

• Inspect sampling equipment and ensure that it is clean
• Ensure sampling starts simultaneously with the bunkering operation
• Check a continuous drip sample is taken throughout the operation
• After bunkering, confirm the seals of the sampling container and the needle valve are not tampered with
• Check sample labels include all relevant information before signing
• Check and ensure the cargo officer performs a number of detailed steps, such as sealing the samples and recording the seal number in the bunker delivery note.

Cappuccino Bunkers – what are the risks and how to avoid them?

This is a problem where air is pumped into bunkers, causing them to froth and appear to have a larger volume. When bunkers are supplied in large quantities, this may result in significant losses for the buyer.

During a bunkering operation, in addition to sample taking, chief engineers should follow these key steps in measuring quantities:

• Inspect/gauge the non-cargo tanks and verify the cargo officer’s declaration before bunkering
• Verify the reference heights of the bunker tanker’s cargo oil tanks and check the measurement equipment, such as the sounding tape and thermometer
• Witness and confirm the opening tank gauging and cargo temperature readings of all cargo oil tanks
• Determine the trim and list of the bunker tanker
• Witness and confirm the closing tank gauging and cargo temperature readings of all cargo oil tanks
• Verify the delivered quantity in the bunker delivery note prepared by the cargo officer.
• The MPA has produced a useful placard setting out the main steps in the quantity measuring procedure.

Since 1 January 2017 the port of Singapore is using Mass Flow Metering systems (MFM) for all marine fuel oil deliveries, as reported in a previous Gard Update. This is expected to improve transparency in the bunkering process and to reduce any illegal bunkering activities. Singapore has established as the world’s top bunkering port. This has been supported by a strong Quality and Standards ecosystem and tools such as standards and accreditation schemes incorporated into Singapore’s regulations to build trust and confidence in the sector. The Singapore Government has been working closely with industry players to advance the development of Singapore as a leading LNG bunkering and gas trading hub. The first Singapore Technical Reference (TR) 56 for Liquefied Natural Gas (LNG) Bunkering was launched on 28th April 2017 by the Maritime and Port Authority of Singapore (MPA), SPRING Singapore and the Standards Development Organisation @ Singapore Chemical Industry Council (SDO@SCIC).

Solution for a bunker quantity dispute?

The bunkering code also provides guidance on what to do in the event of a bunker quantity dispute. Chief engineers should:

• re-check all heights, gauging, measurements, calculations and figures
• investigate and confirm that the relevant tanks and lines were not modified
• inspect the stock movements in the bunker tanker’s stock movement logbook
• request copies of the relevant pages of the bunker tanker’s tank calibration tables and the last certificate of quantity or equivalent document
• request copies of the surveyor’s bunker tanker measurement reports.
• A letter of protest should be issued by the master to formally declare there is a dispute. If possible,  photographs should be taken as evidence.

Special dispute resolution mechanism in Singapore for bunker disputes:

The bunker code provides for the Singapore Chamber of Maritime Arbitration (the SCMA) to administer bunker dispute resolution in accordance with the Singapore Bunker Claims Procedure (the SBC Terms). Unless parties have agreed to submit the disputes to a court or tribunal in another jurisdiction, it is likely that a dispute under a bunker contract with an accredited bunker supplier in Singapore will be submitted to the SCMA under the SBC Terms.

The SBC Terms are intended to provide a simplified, quick and inexpensive procedure to resolve disputes arising out of the sale and supply of bunkers where the claim or counterclaim does not exceed SGD 100,000 and where only a single issue is involved in the dispute. The Singapore International Arbitration Act 2012 applies to arbitrations commenced under the SBC Terms. Any award issued is final, binding and enforceable.

The Singapore bunker industry has formed a new group, the Association of Bunker Industry (Singapore) to address the needs of the industry. This group will work with members -- mostly, but not limited to, small and medium-sized bunker companies to improve the quality of their business services.

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