Singapore records first digital bunker delivery deal

Singapore's DBS Bank today completed the city-state's first live bunker delivery financing pilot transaction through an electronic bunker delivery note (BDN).

The transaction was done between TFG Marine, the bunker supply arm of trading firm Trafigura, and Japanese transport and shipping firm Ocean Network Express. It received support from Singapore's Maritime and Port Authority (MPA) and software company Ascenz. Ocean Network Express and Ascenz provided the technology to digitalise the BDN. DBS and MPA last year jointly agreed to develop the digitalisation of Singapore's bunkering and maritime sector.

Banks currently depend on physical copies of the BDN, among other documents, to enable bunker financing for their clients. This typically takes from a few days to up to a week, while digital BDNs could shorten this process to under two hours. The electronic BDNs also provide more transparency and curtail fraud by leveraging the mass flow meter system for bunkering electronically.

"The adoption of digital documentations will help stakeholders across the value chain move towards more efficient and transparent operations that are aided by data-driven decision making", said the MPA's assistant chief executive (industry) Kenneth Lim.

Singapore, the world's largest bunkering port, is focusing on digitalisation and decarbonisation to retain its competitive edge against growing competition from the likes of China.

By Sammy Six