Hong Kong: Doubt, uncertainty and soaring prices at the world’s largest bunkering hub, Singapore, have seen owners switch their fuelling options to other ports in Asia, with Hong Kong being one of the principle winners.
On November 7, Denmark’s third largest company by revenue, OW Bunker, filed for bankruptcy following the discovery of a $125m fraud at its Singapore subsidiary, Dynamic Oil Trading.
Since then prices have leapt in Singapore amid concern about local supplies. By last Thursday bunker prices in Singapore had hit a two-year high, trading at around $10 a tonne more than in Hong Kong. Local bunker players in Hong Kong told Reuters that in the past 10 days they have had around 20% more inquiries from owners following OW’s demise. [17/11/14]