Singapore has recently accomplished its first pilot of live bunker delivery, backed by an electronic Bunker Delivery Note (BDN).
Underpinned by Asencz, DBS Bank, and the Maritime and Port Authority of Singapore (MPA), the first financing was on a BDN between TFG Marie and Ocean Network Express (ONE).
Banks currently rely on physical copies of the BDN. It is both burdensome and is vulnerable to fraud and manipulation. Mass Flow Meters are used for the digitized bunker delivery allowing the parties to ascertain trade data at source.
Sriram Muthukrishnan, Group Head of Trade Product Management, DBS, mentioned that the digitalization of bunker delivery notes is one of many crucial steps necessary to transition Singapore’s bunkering sector into the digital era and to ensure their port and shipping industry is ready for the future. The intent is to create together an end-to-end digital workflow that enhances efficiency and transparency for bunker trades while building trust with banks and shipowners which will act as a base to the long-term growth and development of Singapore’s bunker ecosystem.
Kenneth Dam, Global Head of Bunkering, TFG Marine noted that this pilot project has let TFG Marine demonstrate the use of Mass Flow Meters, that they have installed on their barges in the port of Singapore and elsewhere, not only escalates transparency for customers in terms of the quantity of fuel received, but can also be adapted to provide real-time information as a digital bunker delivery note to counterparties including customers, the port agents, financing banks, and lastly, the port authority.
The live pilot transaction comes on the back of a joint agreement signed between DBS and in 2020, to advance the digitalization and innovation of financial services and payments across Singapore’s shipping industry. Singapore has the world’s largest bunkering port with close to 50m tonnes of fuel sold in its waters in 2020.
Kenneth Lim, Assistant Chief Executive (Industry) of MPA, said MPA has been accelerating the maritime industry’s digital transformation efforts, and these include digitalization of the bunkering sector, a vital part of their hub port service offering. The adoption of digital documentation will help stakeholders across the value chain move towards more efficient and transparent operations that are supported by data-driven decision-making.