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SIBCON 2020: BIMCO Chief Shipping Analyst explains new business dynamics in bunker fuels sector

Trust is an inherent part of the new dynamic that should be built into existing systems so that bunker procurement can become more hassle free, said Peter Sand.

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Chief Shipping Analyst at BIMCO, Peter Sand on Tuesday (6 October) discussed some key dynamics and trends that he feels will emerge in the bunker industry moving forward, considering how Covid-19 related problems have changed the economic landscape, while providing advice on how to stay competitive in such an environment.

A new business dynamic: trustworthy relationships and hassle-free bunker procurement:

“I think that many of the new dynamics in the marine fuel sector will be led by the hubs and supported by local authorities,” shared Sand.

Sand added that while Singapore is the world’s largest bunkering hub and is a leader in its own way, it also faces many of its own issues and thus “in the bunkering and shipping industry, it isn’t always hassle free to go buy bunkers anywhere in the world”.

Moving forward, Sand sees the element of trust as a key value proposition that bunkering businesses can embrace if entities were to integrate it into their existing system. 

He adds that trust is such an inherent part of the new business dynamic that shipowners and operators could see more returns shifting away from chasing that extra dollar of discounted price to investing in a solid relationship with the bunker supplier instead. 

If a mutual trustworthy relationship is built into the system, shipowners can then avoid the hassles that come with bunker procurement because they can trust the counterparties.

What is the potential consolidation among suppliers and traders?

Looking at how the industry is composed today, large independent distributors take up the lion’s share, the majors second, and then the small independent ones, believes Sand.

Bearing in mind the fuel quality issues with low sulphur fuel, everyone is seeking: a competitive price, high quality and ensure availability on a global scale; this is something not always available from small independent distributors. 

Moving forward, Sand observes that any consolidation trends will be a diminishing of small independent distributors, and an effect of this trend is to develop higher reliability in the industry. 

Peter Sand’s top three tips on how to stay competitive are:

  • Be worthy of the business as a supplier to the industry as bunker fuel supply is the biggest cost for all in the business.
  • Reduce the hassle and increase efficiency surrounding all bunkering procedures on a global scale.
  • Get the right services across and avoid selling complicated financial structures, claiming them to be risk management tools, because they are not.

A series of SIBCON 2020 related articles have been earlier written by Manifold Times:

Related: Chairman of Technical Committee for Bunkering explains SS 660, TR 80; and cast an eye to the future
RelatedSIBCON 2020: TR 48 reaps annual savings of at least SGD 80 million for bunkering sector
RelatedSIBCON 2020: Singapore introduces new MFM bunkering standards SS 660 and TR 80
RelatedSIBCON 2020: Powering Fuels of the Future, Driving towards Decarbonisation
Related: SIBCON 2020: Senior Minister highlights ‘quality resilience and sustainability’ for bunkering sector
RelatedInfineum explains: ISO 8217:2017 should be viewed as a ‘minimum performance benchmark’ for VLSFOs
RelatedInterview: Hafnia shares IMO 2020 preparations, promotes transparency for bunkering operations
RelatedVPS: Shipowners face ‘tricky situation’ to balance VLSFO shelf life and wax appearance temperature
RelatedVPS: Big data analysis reveals link between Covid-19 and spike in low flashpoint MGO off-spec cases
RelatedInterview: Total Marine Fuels Global Solutions discusses sector growth, IMO 2020, and future plans
RelatedSIBCON 2020: Evolution to a ‘completely different’ bunkering industry event, says organiser
RelatedSingapore: SIBCON 2020 bunkering event to be hosted virtually

 

Photo credit: SIBCON 2020
Published: 7 October, 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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