Study on the impact of mass flowmeters on the future of the world's top bunkering port – Singapore

• Main Author: Ng, Gladys Chin Ting
• Other Authors: Kenneth Tan
• Format: Final Year Project
• Language: English
• Published: 2017
• Subjects: DRNTU::Engineering::Maritime studies
• Online Access: http://hdl.handle.net/10356/72977
• Institution: Nanyang Technological University

‘The only good is knowledge and the only evil is ignorance’, said Socrates. With the mandate of MFM, Singapore is harnessing the power of technology to gather more knowledge regarding exact quantity delivered onboard as well as improving transparency in the local bunkering scene. In doing so, hoping to maintain its position as the top bunkering port. Taking the lead to mandate the MFM for all MFO deliveries as of 1 Jan 2017, also establishing standards such as SS600 and TR48 proves that Singapore is ahead of other bunkering ports. This first mover advantage provides temporary bunker port competitiveness for Singapore. This study will be split into two parts: 1. The first paper will be investigating the operational feasibility of the MFM by studying how different industry experts view on this topic. In addition, operational efficiency in terms of time and cost savings, as well as the number of disputes will be studied. 2. The second paper will be focusing on how the MFM influence the bunker prices and volume and its resulting trend in Singapore’s bunkering industry. The different stakeholders unanimously agree on how the MFM will be beneficial to the competitiveness of Singapore’s bunkering port. On the other hand, the extent of its benefits highlighted varies among them. Stakeholders were also quoting on how other factors work hand in hand to reap the benefits of MFM. Unfavourable movements along the local bunker prices and the number of bunker calls have led to the trend of shipowners and bunker suppliers packaging their stems, resulting in an overall higher bunker sales volume. Moreover, the increased competitiveness has made it difficult for smaller local surveyors and suppliers to survive. Although the MFM role can provide Singapore with a competitive edge against other ports, it is very likely the edge over other bunkering ports is not very sustainable. Other factors such as Singapore’s availability of other maritime services can potentially be invested for a more sustainable competitive edge.