Singapore bunker fuel price range may widen prior to use of mass flow meters: trade
Time：2014-08-05
Browse：153
Market prices currently can differ as much as $5-10/mt apart, varying on counterparty credit statuses and other terms and conditions, said one trade source.
Once mass flow meters come into play, the range may “widen to $20/mt or even $50/mt,” creating a two-tier market: one based on mass flow meter quantity readings and another on traditional methods, said another trade source.
But this problem will eventually correct itself come January 2017 and the range will go back to being $5/mt wide at most, said another trade source.
Singapore, the largest bunkering port in the world by volume with 42.7 million mt sold in 2013, will be mandating the use of mass flow meters from January 1, 2017.
Mass flow meters, which measure the flow rate through a pipe that helps gauge the quantity and also the mass and density of bunker fuel passing through, have been a controversial issue in the industry.
Advocates say they will bring greater transparency and improve quality and quantity standards.
But others say the meters are no more accurate than the sounding tape measurement that is used currently, where a quantity reading from the barge fuel tank of the receiving vessel is taken prior to transfer.