A maritime expert with over 30 years of experience, highlighted the urgent need for transparency in cargo handling once oil is blended or reclassified within storage facilities.
KUALA LUMPUR: The maritime industry is urging regulators to establish clearer guidance on cargo-handling practices, specifically concerning the commingling of oil in shore tanks, to prevent a recurrence of high-profile industry collapses.
Maritime Network Sdn Bhd Chief Executive Officer Datuk Seri Jeyenderan Ramasamy stated that previous corporate failures in the region, such as those allegedly involving Hin Leong Trading and Ocean Tankers (Pte) Ltd, exposed significant vulnerabilities in how physical oil inventories are reconciled with financial and documentation records.
A maritime expert with over 30 years of experience, Jeyenderan highlighted the urgent need for transparency in cargo handling once oil is blended or reclassified within storage facilities.
“The cases in question exposed weaknesses in reconciling physical oil stocks with paper records across trading, storage, and vessel operations.
“This highlights broader risks related to inventory verification, documentation integrity and traceability within the petroleum supply chain,” he said.
The CEO warned that a lack of alignment between the actual state of physical cargo and its supporting documentation creates persistent compliance gaps.
He called for more robust regulatory frameworks to ensure that post-discharge commingling, where different oil cargoes are mixed in storage, is accurately reflected in official records.
Jeyenderan stressed that inconsistencies between physical movements and paper trails often lead to:
Valuation Disputes: Discrepancies in quantity or quality during financial assessments.
Compliance Risks: Failure to meet international maritime and trade regulations.
Reduced Confidence: A loss of trust in the regulatory oversight of the petroleum sector.
To mitigate these risks, the industry is advocating for enhanced standards in record-keeping and audit trails.
Jeyenderan stressed that ensuring declared cargo quantities and classifications remain consistent with actual physical movements is essential for maintaining the integrity of the supply chain.
“Without clear standards, the industry remains vulnerable to inconsistencies that can undermine the entire petroleum trading ecosystem,” he said.
