How will OW Bunker’s bankruptcy affect local marine fuel supply?

The global ship fuel market is in turmoil.

OW Bunker, the world’s largest ship fuel supplier, filed for bankruptcy last week after uncovering fraud at its Singapore subsidiary. Today, the Maritime and Port Authority of Singapore reiterated that OW Bunker’s bankruptcy will create only a “minimal disruption” to the bunker supply in the Port of Singapore.

“There are currently more than 60 bunker suppliers in Singapore, and OW Bunker Far East (Singapore) Pte Ltd accounted for less than three percent of the 42.6 million metric tonnes supplied in Singapore in 2013,” noted the MPA.

The MPA stated that it will work closely with the various stakeholders to ensure that bunkering operations in Singapore continue as smoothly and normally as possible.

OW Bunker’s bankruptcy has sent ripples of unease across the global ship fuel market. According to a report by Reuters, buyers are now scrambling for new stocks after OW Bunker’s collapse.

Fuel traders said OW Bunker bankruptcy and other problems in the sector have set off a scramble of fuel buyers attempting to find alternative sources to make up for failing deliveries, and that other companies could also be at threat over unpaid bills.

Despite the disruption, traders said outright fuel shortages were unlikely due to healthy global production and a widespread base of suppliers.

Read Reuters’ report in full here.