Singapore MPA says bunker license cancellations a bid to regulate industry

The recent spate in bunker fuel license cancellations is part of an attempt to regulate the industry in Singapore, the Maritime and Port Authority of Singapore, or MPA, said Wednesday.
It is "part of our efforts 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," an MPA spokeswoman said in an emailed response.
The MPA explained its reasons for the cancellations, which have seen Palmstone Petroleum, Golden Lights HS Bunkering and Shing Li Shipping lose their licenses in the last two weeks.
"The recent cancellation of bunker supplier and bunker craft operator licenses were due to the licensed companies contravening the terms and conditions of the licenses issued to them. For the recent cases, the licensed companies were found to allow an unlicensed company to use their licensed bunker supplier's bunker delivery notes while the licensed bunker craft operator assisted an unlicensed company to deliver bunkers in Singapore," the MPA spokeswoman said.
"Other examples of contraventions of the terms and conditions of the bunkering licenses may include licensed suppliers being involved in bunkering malpractices such as supplying contaminated bunkers as well as being convicted for corruption," she added.
The cancellations followed routine checks on bunker license holders by MPA. "Checks are regularly conducted on licensed bunker suppliers to ensure that they adhere to the SS600 requirements," the agency said.
The SS600, the Singapore Standard Code of Practice for Bunkering, "was developed to ensure that the correct quantity and quality of bunkers is delivered in a safe and efficient manner," the MPA said. "Hence, it is important for customers to ensure that the bunkers they procure in the Port of Singapore are delivered by licensed bunker suppliers."
Under the terms and conditions of possessing a bunkering license, "licensed bunker suppliers and bunker craft operators are obligated to conduct all bunker deliveries and transfer of bunkers in accordance with" the SS600, the MPA said.
Regarding the fall in the number of bunkering license holders from 80-81 some 18 months ago to the 68 now, the MPA spokeswoman said: "Some suppliers choose not to renew their bunker supplier license as a result of changes in business strategy."
A good number of the recent cancellations have been due to transgressions where a licensed supplier "lends" its license to another unlicensed supplier for a fee and does not actually do any supplying or barging of its own, market sources said, adding that these companies saw this as an easy way to make money. Such practices have been common for a while now and reflects how big the Singapore market has grown over the years, trade sources said.
Of course, a company can conclude a deal, then seek assistance from a barge operator to deliver. This would not be viewed as a breach of licensing requirements. "Licensed bunker suppliers can engage licensed bunker craft operators to conduct bunker deliveries in the Port of Singapore," the MPA spokeswoman said in the email.
MPA's moves in recent weeks have met with positive feedback from the bunker industry, sources said. "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," a market source said.
The MPA should also start moving companies who trade only marine gasoil from the main license list to the newly created bunker suppliers list for MGO, market sources suggested. This will better reflect who supplies marine fuel oil and marine gasoil, they added.
Source: Platts