Lloyd's List is part of Maritime Intelligence

This site is operated by a business or businesses owned by Maritime Insights & Intelligence Limited, registered in England and Wales with company number 13831625 and address c/o Hackwood Secretaries Limited, One Silk Street, London EC2Y 8HQ, United Kingdom. Lloyd’s List Intelligence is a trading name of Maritime Insights & Intelligence Limited. Lloyd’s is the registered trademark of the Society Incorporated by the Lloyd’s Act 1871 by the name of Lloyd’s.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call UK support at +44 (0)20 3377 3996 / APAC support at +65 6508 2430

Printed By


Letter to the Editor: PIL responds to arrest claims

Chairman says no legal demands have been made from PIL suppliers. The company is working closely with bunker suppliers

Pacific International Lines chairman Teo Siong Seng confident that vendors continue to support carrier


I note your story about Pacific International Lines on January 10, 2020 (“ Bunker bills a bitter pill for PIL”). I would like to make the following points in the interest of giving your readers a fuller picture of some of the events which your correspondent describes.

I was surprised by your reference to the threat of our ships being arrested. We have not received any legal demands from any of our suppliers that indicate any initiation of an arrest process. We are in regular dialogue with all our suppliers. They understand the difficult market conditions and that we are committed to paying all suppliers in a timely manner. We are confident that our vendors continue to support us.

It is correct to say that some of our vessels have been delayed recently due to the IMO 2020 low sulphur bunker fuel regulations and we are working closely with our bunker suppliers and other stake holders to resume normal schedules as soon as possible. The delays at the start of this year are now easing and most of the vessels to which your article refers have now sailed and our schedules are returning to normal.

You say PIL’s bunker issues “may have been exacerbated” by our decision to invest heavily in scrubbers. We are committed to installing scrubbers on 42 of our larger vessels, which will cover almost half our fuel consumption. It has been widely reported that installation is taking longer than expected at some yards.

But when scrubbers are all installed on our ships by the second quarter of this year, we will benefit greatly due to the wider-than-expected spread between the price of 0.5% sulphur-compliant fuel and high-sulphur fuel oil.

We have taken a strategic position on this and we believe we can benefit significantly once all our scrubber-fitted ships are deployed into service.

You refer to a planned US$ bond issue in 2017 which was suspended. In fact, in July 2017 PIL fully redeemed a S$300m bond and we also launched a S$60m bond in November 2017 which was fully subscribed despite difficult markets. In 2018 we explored the idea of a US$ bond but we held back due to the unfavourable market conditions at the time.

Liner shipping has had a difficult time in the last few years, but PIL has overcome these challenges.  We and the other liner companies are now well positioned to benefit from a market upturn. We retain a positive outlook for our business and our industry.

SS Teo
Executive chairman, PIL

Related Content





Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts