Singapore's Fines for Unlicensed Bunkering "Really Small", Does Not Deter Offenders, Say Critics

by Ship & Bunker News Team
Monday August 31, 2015

Critics in Singapore have said that the current fines for unlicensed bunker suppliers are too low to effectively deter offenders, Platts reports

The comments came after the Maritime and Port Authority of Singapore (MPA) earlier this month charged JL Petroleum Pte Ltd with bunkering in the city-state without a licence, which was said to have resulted in a fine of SGD 5,000 ($3,567).

Some industry players said that the amount was so relatively small that the profit margins could still be worth it for the offender.

It was reported that JL Petroleum was thought to have supplied bunkers on 14 occasions in 2013 using the bunker delivery notes (BDNs) of former licenced supplier Excel Petroleum Enterprise Pte Ltd, who in 2014 had their supplier's license revoked as a result.

"The sum of SGD 5,000 is really small, and would not be drastic enough to deter offenders from trying to borrow another supplier's licence," said an unnamed trader. 

"If they are using the license to deliver a 5,000 mt parcel of bunker fuel, the borrower typically pays the lender around a $1-3/mt margin for each tonne they deliver and this could work out to as much as SGD 15,000 each time they borrow the license," said another source.

According to reports, the MPA has already been widening its enforcement of unauthorised bunkering by targeting the companies who borrow the licences. 

Previously, the MPA was said to have only targeted the companies who were lending licences. 

Earlier this month, it was noted that the number of accredited bunker suppliers has been on a decline over the past few years.