Digital bunkering services may bring greater efficiency and transparency to the industry. File Image / Pixabay
Marine fuel supplier Kenoil Marine Services has completed the first bunker deal using the Singapore Trade Data Exchange (SGTraDex).
Local bank DBS worked with Kenoil to carry out the trade using the digital data exchange, the lender said in a statement on its website on Wednesday. The exchange processed an electronic bunker delivery note, taking data from the supplier's mass flow meter via data service provider Brightree.
The lender said the system could provide bunker market participants with faster access to working capital and enhance their cash flow management.
"With the digitalisation of the bunker delivery note, financing and payment for the underlying trade can be completed efficiently and on a near immediate basis," Sriram Muthukrishnan, group head of global transaction services product management at DBS, said in the statement.
"Furthermore, the risk of fraudulent manipulation is mitigated as banks and fellow industry partners are now able to ascertain the trade data at source.
""This helps provide greater transparency and comfort regarding the genuineness of trade.
"With the successful completion of the first live transaction, we look forward to partnering SGTraDex to support more businesses to digitalise their workflows to enhance supply chain efficiency and transparency, and reinforce Singapore's position as a global trade hub."