IBIA CONVENTION 2025: MFMs Should be Bunker Industry's Top Priority - TFG

Kenneth Dam, Global head of Bunkering, TFG Marine speaking at the IBIA Annual Convention in Hong Kong. Image Credit: Ship & Bunker

Although the IMO vote on the Net Zero Framework (NZF) has been a big talking point in recent weeks, bunker industry stakeholders should prioritize the rollout of mass flow meters (MFMs) for bunkering if they want to affect meaningful change.

The comments came Thursday from Kenneth Dam, global head of bunkering at global supply and trading firm TFG Marine, during an IBIA Annual Convention in Hong Kong that was dominated by discussion of the recent failed NZF vote at IMO - a topic most every session seemed to touch on at some point.

But in a lively last panel discussion of the event, Dam encouraged delegates and IBIA as a whole to put the NZF aside and focus on where it can make a real difference: MFMs.

"What we can do as an industry is to fix the market which is not transparent, not compliant, and is not safe.

"As an industry, that's what we should focus on: fixing it.

"How can we actually create value on both sides of the table that serve the industry? That is what we should spend time on."

As many have noted, a lack of transparency across the supply chain makes it almost impossible for buyers to accurately compare prices, products, and services.

Digitizing the supply chain so all aspects can be quantified and compared on a level playing field would bring that much needed transparency. MFMs, Dam argues, are the crucial first step in that process.

"It's actually not that complex if you can compare the same products. The problem we have is that we're not comparing the same products. We are comparing a 100 year old barge somewhere in Latin America versus a one year old barge in Singapore with a completely other technology on board," he told delegates.

MFMs and Digitalization

Singapore has mandated the use of MFMs for conventional fuels since 2017, while Rotterdam and Antwerp-Bruges are set to require the same from next year.

Fujairah's authorities have also said they will consider imposing a similar mandate, and South Korea is now also understood to be considering a mandate from 2027.

If implemented and governed correctly, MFMs are not only a more accurate means of measuring bunker deliveries but can eliminate many forms of bunkering malpractice.

In comparison, traditional tank soundings taken with a measuring tape are vulnerable to both accidental and deliberate misreporting of delivered volumes.

Critically, MFMs allow instant quantification and digitalization of bunkering metrics that can be reported to buyers, suppliers, and benchmarked against others.

"I think the market would be super happy to see the industry comparing with each other and actually showing live data, or how good is the performance, but there is resistance," he said.

"I would be happy to speak with other suppliers about them sharing their data and we could share our data. Let's compare it! Maybe it's not perfect and we have room for improvement, but let's start at that point."

Another concern brought by MFMs is the cost - not only in buying the meters but in managing the framework under which they operate.

Indeed, when Singapore announced it would move as the first port to mandate the use of MFMs there were concerns from some market participants the world's biggest bunkering hub would lose market share.

The effect, in fact, has been quite the opposite.

"It's mind blowing that ports who see their volumes going down are not looking towards Singapore and Sohar who are increasing their volumes and understand it is because those ports are putting in the right tools like MFMs," Dam said.

There are also some who believe MFMs are only needed to stop malpractice. By implication, welcoming the use of MFMs is an admission that malpractice is currently taking place.

But this should not be the case, says Dam, and MFMs should instead be seen as the critical first step on the road to industry improvement through digitalization.

"It doesn't matter if a company says, 'we have always done it this way, there's nothing wrong with how we supply.' MFM is a tool that is simply essential for digitalizing the chain," Dam said.

"And IBIA should be the ones saying that if you're implementing MFMs in your ports without a focus on digitalization, it will not be effective."

IMOs NZF vote aside, officially it was the subject of future bunker fuels that took top billing at the event - and Hong Kong Maritime Week overall.

But again, Dam questioned if the industry has its priorities in order.

"I think this [digitalization] panel should have been the first one, because that's much more important for being the gateway into the future fuels," he said.

"So, sometimes I think we are spending a lot of time discussing the wrong things, because this is essential"

TFG has been a longstanding proponent of the use of MFMs in bunkering, and has a target of installing the equipment on almost 90% of its barges around the world by 2026.

The firm is also part of the Bunkering Services Initiative at the ARA hub, a group of marine fuel and shipping companies committing to robustly-monitored barges with mass flow meters, digitalised deliveries and transparency on marine fuel quality.

"We need to get away from manual handling, and if we don't do that we will be playing catch up," he said.

"Yes, there are companies and individuals who are pushing against it, but again, we will play catch up.

"We just need to get this done."