Asia/Pacific News
DNV: Fewer Off-Spec Bunker Samples in Colombo than Singapore
Det Norske Veritas (DNV) says in 2012 bunkers sold at Sri Lanka's port of Colombo had, as a percentage, fewer off-spec samples than in Singapore, however prices are too high to be competitive, Sri Lankan publication Lanka Business Online reports.
According to the report, in Colombo 4 percent of fuel samples were off-spec, compared with 7 percent in Singapore - the world's largest supplier of bunkers by volume.
DNV found that the majority of the problems in both ports were viscosity and sulfur content rather than the more damaging presence of catalytic fines, but it also found the catalytic fines were more common in Singapore fuel samples than those from Colombo.
Speaking at a forum in Colombo organised by the consulting firm Seatrade and Sri Lanka Ports Authority, DNV Regional Manager Gunnar Kjeldsen said Sri Lanka should adopt a bunkering code of practice, similar to those in place in Singapore and Gibraltar, to maintain its reputation and standards and minimize risks and disputes.
"It is not so important now, there are only a few suppliers and they are delivering good quality," Kjeldsen said.
"But when more players come into the market there will be some issues regarding quality."
Kjeldsen said the country should ratify Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL) to assure ship owners that fuel conforms to international rules.
Jonathan Peggler, head of trading for Asia, Trafigura PTE, Singapore, said Sri Lanka should import larger shipments of oil using bigger vessels so that it can cut selling prices and make itself more attractive to buyers, and it also needs financial services to offer credit to suppliers.
Sri Lanka is working to increase its sale of bunkers and intends to start supply at its new Hambantota port next month, which is closer to East West ship lanes than Colombo.
Benchmark grade IFO380 stood at $660 per metric tonne in Colombo on Friday, compared with $614 in Singapore, according to Ship & Bunker data.
