December 6, 2022
UK based classification society Lloyd’s Register (LR), in collaboration with marine innovation consultancy Thetius, has published a new report into the market, technology, and regulatory trends of fuel oil bunkering as the industry navigates its way through the decarbonisation and digitalisation challenges of the 21st century.
The report, titled Testing Times – The vital role of ship fuel oil testing and quantity verification in an uncertain era estimates that in excess of one million tonnes of off-specification or non-compliant fuels are detected each year, costing ship operators between $27,000-$50,000 per incident. It says operators require reliable support in bunkering disputes and points to the need for independent testing and verification.
Asserting that ship operators need dependable support in bunkering disputes along with independent testing and verification, the report says the introduction of biofuel oils, growing prevalence of bunker licensing schemes along with upcoming changes to ISO standards for marine grade fuels “make it more vital than ever that ship operators receive the correct advice and oversight on bunker procurement and refuelling operations”.
The report also emphasises the number of contributing factors that have made the market prone to serious issues, including the Russia/Ukraine crisis, fraud and corruption, lack of supply chain transparency and climate change.
Matthew Kenney, Director of Research and Consulting at Thetius said:
“The evidence gathered in this report paints a worrying picture for ship operators who are facing increasing cost and risk from contaminated fuels while tackling a myriad of other challenges. Significant gaps remain where opportunities for poor quality and off-quantity bunker deliveries can gain and maintain a foothold.”
Peninsula start physical supplies at Fujairah
Global marine fuel supplier and reseller Peninsula, has started physical operations in the Port of Fujairah.
The company says that its “strong track record” as a reseller in Fujairah, will now be combined with its global physical supply expertise to help further cement its position in and around the Arabian Sea and Indian Ocean.
According to a company statement, the opening of a physical supply operation in Fujairah is the next step in Peninsula’s expansion from the group’s Mediterranean hub.
Peninsula is starting operations with its newly-built, 8,000 DWT tanker Hercules Star. A second vessel is to join her shortly.
Peninsula’s 22,000 DWT product tanker and supply vessel, Splendour, was deployed to Mauritius earlier in the year and continues to provide “comprehensive marine fuel solutions in the southern Indian Ocean” the company added.
In addition to the Port of Fujairah physical operation, Peninsula has opened a commercial office in Dubai.
ZeroNorth buys Prosmar Bunkering
Technology company ZeroNorth has acquired Prosmar Bunkering, an online platform supporting the bunker fuel market. According to ZeroNorth, the acquisition will aim to accelerate digitalisation and transparency in the bunker industry and further support the decarbonisation transition within the marine value chain.
The deal sees ZeroNorth acquire Prosmar’s Bunker Dashboard solution and Bunker Pricer module, which will operate under the name Prosmar Bunkering AS. Prosmar’s two other services, Prosmar Risk and Prosmar Price Matrix, which offer freight risk management services, are not included as part of the deal with ZeroNorth.
Prosmar Bunkering will operate as an independent, stand-alone business, with the same management team currently running the company.
Revamp for Orion
Pakistan-based Orion Bunkers Limited has restructured to become Orion Bunkers DMCC. The company, which has been refuelling vessels at Karachi and Bin Qasim since 2004, remains under same management.
Orion director Zishan Arshad told World Bunkering: “We changed the entity to get more exposure in industry and to strengthen business relations, as Pakistan’s top physical bunker supplier in terms of volume and growth.”
He added: “Currently, we are operating with three barges for VLSFO and one barge for LSMGO. This is the biggest fleet any supplier has in our ports. We are offering our products based on ISO 8217:2010 standards where grades are RMG 180 and LSMGO DMA. All our deliveries are subject to BIMCO 2018 terms.”
Arshad explained: “We started VLSFO deliveries from the beginning of 2022, from there we never looked back and kept growing month on month basis. VLSFO production has started after delay of two years. However only one refinery in Pakistan is currently producing VLSFO, with output of about 3,000 to 4,000 tonnes a month. Meanwhile demand is three times more than that.”
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