Asia/Pacific News
Relationships More Important than Technology for Beating Bunker Fraud, says Trader
Singapore-headquartered Dynamic Oil Trading says that while it welcomes technologies such as mass flow meters (MFMs), it believes that developing longer-term, partnership-based relationships with bunker suppliers is more important when it comes to beating bunker fraud.
"Understandably, following the Maritime and Port Authority of Singapore's decision to make mass flow meters mandatory from 2017, there is greater optimism about the role that this technology can play in reducing short deliveries, whether accidental or deliberate," CEO Lars Møller wrote Monday in an emailed statement.
"However, even where mass flow meters are available, ship owners need to be aware of other factors that can give rise to disputes, not just over fuel quantity, but also off-spec products or fuel contamination. This can have extremely serious consequences, including non-compliance with emissions regulations and damage to engine components."
The bunker and lubricant trader also warned ship owners against "cutting corners" and skimping on their due diligence in an effort to buy the cheapest available fuel.
"[Ship owners] need to be aware of the risks that this poses, not just in terms of bunker fraud but also other risks that can threaten their operational activities and their reputation, as well as proving very expensive," said Møller.
"Whilst the ultimate responsibility rests with shipping companies for who they choose to procure their fuel from, we firmly believe that they should take advantage of the local supply chain knowledge held by well-established bunker suppliers."
The company says that when looking for a supplier, factors that ship owners should check include the local knowledge and experience of its staff, the due diligence conducted into its recommended physical suppliers, and its track record of bunker disputes or claims.
As part of ongoing measures to crack down on bunker fraud in the world's biggest marine fuel market, the Maritime and Port Authority of Singapore (MPA) announced in April that from January 1, 2017 it will be mandatory to use a mass flow metering system for Marine Fuel Oil bunkering at the port.
