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Bunker fuel sales dipped 2% at Singapore port in May, experts provide opinion and forecast

‘As the saying goes without people buying things, manufacturing will slow, trade will also slow and shipping movements slows down. It’s a whole chain of reaction,’ says Simon Neo.

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Bunker sales at Singapore port fell by 2.0% on year in May 2020, according to data released by the Maritime and Port Authority of Singapore (MPA) on Friday (12 June).

The dip in marine fuel sales was aligned with the expectation of several industry players who believed COVID-19 (Coronavirus Disease 2019) has finally ‘caught up’ with market demand.

“As mentioned in my earlier commentary, May was looking to be a quieter month compared to April,” explained Dennis Ho, Director & Founder of local marine fuel consultancy Azure Strategic Resources.

“Prices in April, which led to ship operators/owners loading up on their bunkers, encountered a sharp correction in the later part of the month. This was followed by a quick recovery of prices in May, with Gasoil MOPS clawing back about 40% from the lows of April.

“These two factors combined probably led to a lower bunker sales volume for the Singapore market in May.  However, if taken into context of the current global economic situation, I would say the bunker market has been quite resilient.”

Ho noted the wider maritime market being buoyed by optimism as countries begin to relax their strict lockdown measures due to COVID-19.

“Positive trade figures from China also brought hope of a possible V-shape recovery, while other financial markets were also bullish,” he said.

“The expectation of OPEC+ to extend their production cuts, which was a development during the end of May, provided more bullish news to the market.”

Ho expects market prices to be volatile moving forward to June.

“The Singapore bunker market will face price competition with regional ports (i.e. Port Klang, Hong Kong and South Korea),” he forecasts.

“Additionally, ex-wharf discounts over cargo prices in June will likely be lower than May due to ample supplies and weaker demand.

“The continued spat between US and China will also weigh on the broader market. Expectations of a prolonged economic downturn will look bearish for the market if mortality continues to increase in the second wave of COVID-19.”

Simon Neo, Executive Director at marine fuels consultancy SDE International, says the drop in Singapore’s bunkering volume during May “is not unexpected”.

“Many major bunker ports around the world also saw a decline in volume [in May]. Less cargoes are being shipped globally due to the showdown in trade and closure of factories caused by COVID-19 and the continued spat between USA and China,” he notes.

“This was evident in the number of vessel arrivals to Singapore for May [-43.7% y.o.y.]. Shipping is going through a difficult year, while banks’ tightening of credit facilities have also not helped and most likely this will remain the case going forward.

“The tightening of credit facilities not only affects the shipowners but also the bunker industry as a whole.

“Physical suppliers usually give shipowners or charterers open credit for 30 days after bunkers are delivered to the vessel. With the tightening of credit facilities from the banks to physical suppliers, the group will gradually not be able to supply more volume.

“The industry is facing a slowdown in the whole bunker sector as countries try to open up their trades cautiously to prevent a second wave of COVID-19 into their countries, not forgetting people are buying lesser, going out lesser and travelling much lesser now.

“As the saying goes without people buying things, manufacturing will slow, trade will also slow and shipping movements slows down. It’s a whole chain of reaction.”

Singapore bunker volume

A total 3.92 million metric tonnes (mt) (exact: 3,925,000 mt) of bunkers was sold at the port in May, less than 4.00 million mt (exact: 4,006,500 mt) posted during May 2019.

Deliveries of 500 centistokes (cSt), 380 cSt and 180 cSt grades in May 2020 (against on year), were respectively 100,100 mt (-86.8% from 759,100 mt), 685,200 mt (-75.5% from 2.79 million mt), while 180 cSt product recorded no sales (-100% from 19,600 mt).

Low sulphur 500 cSt, 380 cSt and 180 cSt products respectively recorded 3.5 million mt sales (compared to zero), 1.92 million mt (significantly up from 19,700 mt), and 76,600 mt (+92% from 39,900 mt).

The latest data introduced new categories, namely low sulphur 100 cSt, and ULSFO which respectively recorded 657,200 mt and 58,400 mt of sales in February.

Low sulphur marine gas oil (LS MGO) sales were posted at 351,400 mt (+65.6% from 212,000 mt) and MGO at 72,100 mt (-5.0% from 75,900 mt).

Related: Marine fuel consultants explain Singapore’s 10.8% on year bunker sales increase in April
RelatedSingapore: March 2020 bunker fuel sales rise 5.7% on year
RelatedSingapore: February 2020 bunker sales volume up 2.5% on year
Related: Singapore: January 2020 bunker sales volume up 7.5% on year

 

Photo credit: Manifold Times
Published: 15 June, 2020

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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