The year-on-year performance of Singapore’s ship chandlers and bunkering sector has fallen, according to data compiled by the Department of Statistics (DOS). The sector declined 32 per cent domestically while exports declined by 41 per cent in 2020 due to slowdown in world trade.
Overview of the Industry
There are about 1,000 vessels in the Singapore port at any one time, with 130,000 ships passing through annually, contributing to about 7 per cent of Singapore's GDP. A call to the port often involves not just unloading and loading a vessel, but replenishment of its supplies and fuel reserves.
Ship chandlers trade with the arriving ship for goods and supplies without the crew needing to visit the local port town. They supply the crew's food, ship's maintenance supplies, cleaning products, medicines, and other crew requirements. The advantage is that they do not have to find stores in the town they have landed in, nor hold that local currency. Typically, the ship owner has a line of credit with the chandler and is billed for anything delivered. The chandler is supplied by merchants local to his location. Because commercial ships turnaround on a relatively tight schedule, and delays are expensive, the distinguishing feature of a good ship chandler is one who is able to fill and deliver a ship's orders on time.
Although Singapore does not produce any oil, it is the top bunkering port in the world. 2020 saw its second-highest annual sales at $49.83million with 40,585 vessels refueling despite Covid-19 disruptions compared to 2017's $50.64m.
The Department of Statistics defines this sector as follows:
- SSIC 46661 Ship chandlers
- SSIC 46662 Ship bunkering
Major Players
According to the Singapore Ship Chandlers Association, shipping in the 21st century is highly complicated and a technologically advance component of the transport industry. It relies heavily on efficient shore-support services. SINWA is the largest ship chandler in Singapore, supplying essential goods to ships and their crews. It has been one of Asia Pacific’s leading marine, offshore supply and logistics’ companies, servicing ships in Singapore, China, Thailand and Australia.
According to the Marine and Port Authority of Singapore, there are 51 registered bunkering suppliers in Singapore. Major bunkering suppliers include PetroChina International (Singapore) Pte Ltd, Sentek Marine & Trading, Transocean Oil and Maersk Oil Trading Singapore Pte Ltd.
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