KUALA LUMPUR, April 28: The maritime industry is urging regulators to provide clearer guidance on cargo handling practices, particularly involving oil commingling in shore tanks, following key lessons from past corporate failures in Singapore.
The chief executive officer of Maritime Network Sdn Bhd, Datuk Seri Jeyenderan Ramasamy in a statement today said the collapses of Hin Leong Trading and Ocean Tankers (Pte) Ltd exposed serious weaknesses in how physical oil inventories are reconciled with documentation and financial records.
With over three decades of experience in the industry, the maritime expert said there is a need for greater clarity in how cargo is handled once it is blended or reclassified in storage facilities.
“The cases exposed weaknesses in reconciling physical oil stocks with paper records across trading, storage and vessel operations, underscoring broader risks related to inventory verification, documentation integrity and traceability within the petroleum supply chain,” he said.
He added that without proper alignment between physical cargo conditions and documentation, the industry risks ongoing compliance gaps.
Against this backdrop, he called for clearer regulatory frameworks to ensure that cargo handling practices, particularly post-discharge commingling, are properly reflected in official records.
He also stressed the need for stronger standards in record-keeping and audit trails, to ensure that declared cargo quantities and classifications remain consistent with actual physical movements.
The inconsistencies between physical cargo and documentation could lead to valuation disputes, compliance risks, and reduced confidence in regulatory oversight of the petroleum sector, he added.
–WE