World News
KPI Bridge Oil: Singapore MFM Regs Won't Stop Bunker Disputes
Singapore's requirement to use mass flow meters (MFMs) for bunkering from January 1, 2017 will not eliminate disputes, says Mark Emmett, Managing Director of KPI Bridge Oil Singapore.
"Just the fact that deliveries take place between two ships, often in the middle of the ocean – and is a product which has been heated just to liquefy it will always bring uncertainties which can trigger complaints," says Emmett.
Even though bunker suppliers will be required to use MFMs, Emmett notes that most receiving vessels will not be equipped with mass flow meters, and will therefore rely on traditional methods to determine the received volume.
"If the chief engineer thinks he has received too little bunker, he will still – mass flow meter or not – claim that he has been underserved," he says.
"I'm not saying who's right and who's wrong. But seeing as there likely aren't many shipowners in this struggling shipping market who'll be willing to spend USD 150,000 to install a mass flow meter on their vessels, I think these disputes will continue."
Even so, Emmett does see value in mandating MFMs.
"Specifically here in Singapore it will eliminate many of the problems," he says.
In February, the Maritime and Port Authority of Singapore (MPA) launched the world's first National Technical Reference for Bunker MFM, TR48 : 2015.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 511.00 | 11.50 | 602.50 | 10.00 |
| Rotterdam | 479.00 | 1.00 | 618.50 | 1.50 |
| Houston | 464.50 | 4.00 | 615.50 | 5.00 |
| Fujairah | 506.00 | 2.50 | 703.50 | 7.50 |
| Global 20 Ports Average | 532.00 | 4.50 | 708.50 | 4.00 |
| Global 4 Ports Average | 490.00 | 4.50 | 635.00 | 6.00 |
| Global Average Bunker Price | 570.00 | 1.00 | 752.50 | 6.00 |
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