Asia/Pacific News
Singapore Volumes Could Drop with Mass Flow Meter Adoption
Volumes of bunker fuel sold in Singapore are likely to decline as the port city mandates the use of mass flow meters, but the decline may not be long-lived, Platts reports, quoting industry sources at an International Bunker Industry Association (IBIA) forum Friday.
Suppliers say bunker prices will rise as they cover the cost of buying and installing mass flow meters, which cost $196,000 to $235,000.
Still, Captain Tey Yoh Huat, chairman of the Singapore Shipping Association (SSA) Environmental sub-committee, said prices in Singapore are likely to remain the lowest in the region.
Some suppliers say they plan to charge a premium, typically around $2 per metric tonne (pmt) for buyers that want the meters used in their deliveries.
Members of the audience said shipowners' choice of bunkering ports will depend on supply and demand conditions as well as reliability, with Singapore winning customers due to its strong supply and delivery infrastructures.
Ship & Bunker's recent Inside Opinion feature discusses the potential role of the mass flow meter requirement in promoting consolidation in the Singapore market.
