KUALA LUMPUR, May 1 — 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.
Maritime Network Sdn Bhd chief executive officer Datuk Seri Jeyenderan Ramasamy, in a statement, 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 industry experience, the maritime expert said there is a need for greater clarity in how cargo is handled once it is blended or reclassified at 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 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 declared cargo quantities and classifications remain consistent with actual physical movements.
He further said inconsistencies between physical cargo and documentation could lead to valuation disputes, compliance risks, and reduced confidence in regulatory oversight of the petroleum sector.
The renewed push for clarity comes as regional trading hubs continue to tighten scrutiny over oil storage, blending, and transshipment practices to prevent similar systemic failures.
