Ocean bunkering, the Hin Leong Trading subsidiary that supplies bunker fuels, has said that it will suspend deliveries from 17 April according to Reuters reports.
Yesterday Bloomberg reported that Hin Leong was indebted to the tune of more than US$3 billion to 10 major banks and financial institutions and was in talks with its creditors on how to handle the debt.
“Ocean Bunkering Services Pte Ltd (OBS), a subsidiary of Singapore trading company Hin Leong, has informed some customers that it plans to suspend marine fuel deliveries from as soon as Friday, three bunker traders who deal with OBS told Reuters.”
Ocean Bunkering is considered the third largest bunker supplier in Singapore one of the key bunkering ports around the globe along with Rotterdam, Fujairah and Los Angeles.
Local sources told Reuters that Ocean Bunkering would not deliver three orders scheduled for 17 April, and a further two customers had said their deliveries had been cancelled.
Hin Leong is said to have been struggling as global trade has been severely curtailed as a result of the Covid-19 virus and with oil producer disputes the price of oil and bunkers has slumped. Oil prices are now at around the low to mid-US$20/bbl and 380HFO is trading at less than half the price it was a year ago in all regions, listed in the MABUX weekly price check.
