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Singapore: Asia Pacific Exchange officially launches 380 cSt fuel oil futures contract

Contract of 10 mt is settled through physical delivery – a first in Singapore – and is expected to bring increased convenience to the fuel oil market, it says.

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The Asia Pacific Exchange (APEX) officially launched its 380cst Fuel Oil Futures Contract (Contract Code: FO) for trading on 11th April 2019, 9pm Singapore time at the world’s largest bunkering port.

The news of the launch was welcomed by industrial participants.

“Singapore is the world's largest refuelling and trading port for bunker fuel oil, with numerous market participants,” said Unni Einemo, Executive Director of International Bunker Industry Association (IBIA).

“APEX's new fuel oil futures contract is expected to form a new pricing benchmark for fuel oil trades, playing an active role in providing market price discovery and arbitraging opportunities for participants.”

Tony Lin, Executive Director & Head of Crude Oil and Fuel Oil of Zenrock Commodities Trading Pte. Ltd. provided his insights: “APEX's Fuel Oil Futures Contract has long trading hours, providing a continuous trading window for the market. The physical delivery mechanism guarantees the convergence of spot-futures prices, enhancing fuel oil’s hedging and arbitrage opportunities.”

“As a trading company based in Asia, with fast growing global reach, Zenrock International is conducting research on the new opportunities that the new product can bring. We believe that the development of the APEX Fuel Oil Contract will bring great benefits to the spot trade and investment opportunities in the fuel oil industry.”

APEX shared the below following information with Manifold Times regarding the launch of its 380cst Fuel Oil Futures Contract:

IMO 2020
The global maritime industry is facing a major challenge, with the upcoming IMO 2020 Rule bringing uncertainty in the market. The uncertainty over fuel oil demand may possibility cause large movements in fuel oil prices. The IMO 2020 Rule states that from 1st January 2020, no vessel can burn marine fuel with sulphur content higher than 0.50% unless it is operating with an exhaust gas cleaning system (scrubber). Currently, there are no clear picture of how the demand for both High Sulphur Fuel Oil (HSFO) and Low Sulphur Fuel Oil (LSFO) will change by 2020. Possible large shifts in demand for both fuel oils may cause prices to swing widely, further justifying the need for price hedging tools in the market.

Despite many industrial participants presenting Marine gasoil as a possible alternative to HSFO, the significantly costlier alternative may be an obstacle for smaller participants to make the switch. Many of the participants will continue to use HSFO – 380cst Fuel Oil as the economical option, and will continue to utilize HSFO contracts as a hedging tool.

Market Situation
Singapore is currently the world’s largest bunkering port in the world, supplying over 50 million metric tons of marine fuel oil annually. As the maritime industry contributes 7% to Singapore’s Gross Domestic Product (GDP), the new regulations are expected to have a huge impact on Singapore’s maritime industry and economy. Singapore contributes up to a quarter of world’s total fuel oil usage, serving as Asia’s pricing centre for fuel oil. As fuel costs remain the biggest cost item for shipping companies, huge price fluctuations in fuel oil prices in recent years can adversely affect operational costs for many companies, which may cause a ripple effect on the Singapore economy.

The largely volatile fuel oil prices have fluctuated up to 100%, urging associated industries to hedge the risk of adverse price movements. Currently, there are limited hedging tools in the local market for fuel oil, with most local participants relying on Over-The-Counter (OTC) Market or hedging tools from Intercontinental Exchange (ICE), larger participants using the PLATTS Market. In addition, many Chinese participants utilize the Shanghai Futures Exchange (SHFE) contract to hedge their risks. Despite the presence of these markets, there remains several constraints such as exchange rate fluctuations and large contract denominations.

Besides that, there have been controversies over the quality of fuel oil in recent years, where physically delivered fuel oil failing to meet the required specifications. The newly designed APEX Fuel Oil Warehouse Receipt (AFOWR) Delivery System is expected to overcome these obstacles, by warranting the product specifications through rigorous quality inspections.

Launch of 380cst Futures Contract
In light of the current situation, APEX launched the 380cst Fuel Oil Futures Contract, to create a platform for Energy industries and Financial institutions to hedge and invest in the fuel oil market. The contract comprises of several key features:

Firstly, the small contract size of 10MT/contract enables all market participants, small or large, to participate in the market. Furthermore, the contract is US dollar denominated, reducing exchange rate risks and providing investors with intuitive arbitrage opportunities such as spot-futures, cracking spread and cross-market arbitrage.

Secondly, the contract is expected to provide price transparency for the fuel oil market, as the contract is continuously traded in the market. Trading hours cover Platts Singapore, Shanghai Futures Exchange (SHFE) and Intercontinental Exchange (ICE), effectively connecting Singapore, Shanghai, European and American markets. This presents ample of trading opportunities, where clients can consistently receive live information on the fuel oil prices.

Lastly, the contract is settled through physical delivery, via the use of APEX Fuel Oil Warehouse Receipts. This unique method of physical delivery is the first in Singapore, and is expected to bring increased convenience to the fuel oil market. Participants can choose to load-in their fuel oil to APEX Approved Warehouses, where they can store or sell their products to potential buyers. The unique methodology ensures that the product is of satisfactory specifications during physical delivery, reducing the risks of low quality products.

Contact details of APEX are as follows:
Email: [email protected]
Office: 6914 2859

Photo credit: Asia Pacific Exchange
Published 12 April, 2019

 

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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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