Asia/Pacific News
Major Singapore Bunker Supplier Facing Financial Difficulties: Reports
Credit managers were on alert Thursday as reports surfaced that Hin Leong Trading and its marine fuels arm, Ocean Bunkering, are facing financial difficulties.
A report from news agency Bloomberg, citing sources with knowledge of the matter, indicates some of the privately-held trading firm's lenders are declining to issue new letters of credit to the company.
Credit managers at two separate bunker companies, who asked not to be named, told Ship & Bunker they had heard that two large banks have stopped new lending to Hin Leong.
The company has not yet made an official comment on the matter, and company representatives were not immediately available for comment when contacted late on Thursday. Friday is a public holiday in Singapore.
Ocean Bunkering is a major player in the Singapore bunker market, ranked as the country's largest supplier by volume for 2018 and third in 2019, according to the official list published by the country's Maritime and Port Authority. Its sales are likely to number in the low millions of metric tonnes per year.
Worries over credit have been rising in the bunker industry over the past month since the collapse in crude prices in early March rapidly dragged down marine fuel prices with it.
