Asia/Pacific News
Singapore Bunker Licence Abuse "Common" Say Sources
In the wake of four Singapore bunker licence cancellations over the last few weeks, trade sources have told told Platts that malpractice involving a licensed supplier "lending" its license to another unlicensed supplier for a fee has become "common."
The Maritime and Port Authority of Singapore (MPA) says the cancellations followed regularly scheduled checks that are conducted for all licensed bunker suppliers, and are part of an effort to regulate the industry.
Since mid-June there have been three cases where Bunker Delivery Notes (BDN)'s have been misused, resulting in the MPA cancelling the bunker supplier licenses of Palmstone Petroleum Pte Ltd, Coast-Channels Marine Services Pte Ltd, and Golden Lights HS Bunkering Pte Ltd, as well as the licence of bunker craft operator Shing Li Shipping Pte Ltd.
BDN Misuse
In all three cases MPA said the suppliers were in breach of Clause 3 of the terms and conditions of the Bunkering Licence (Bunker Supplier), where the supplier had allowed another company to use their BDNs to supply bunkers to customers of that other company.
Shing Li Shipping was found to have breached Clause 31 of the terms and conditions of its bunker craft operator licence for delivering bunkers on behalf of an unlicensed company to customers of that company.
An MPA spokeswoman said the cancellations represent part of an effort "to assure customers on the reliability of the quality and quantity of bunkers delivered in the Port of Singapore as well as to maintain the integrity of the local bunkering industry."
Some in the industry were said to have applauded the MPA's crackdown.
"There are many companies who do not own nor operate any bunker barges but they possess licenses, and MPA should go after these companies that are spoiling the market," one source said.
Some also suggested that the MPA should move companies that only trade marine gasoil (MGO) to a newly created MGO bunker supplier list instead of keeping them on the main license list.
There are currently 68 licensed bunker suppliers at the port, all of which feature on MPA's list of accredited bunker suppliers.
