Deregulation policy and revitalization of Singapore's bunker supply industry: An appraisal

High bunkering standards are important for ship operators and port authorities for a variety of reasons. When problems arise they may have serious consequences for a port's image. Faced with a range of difficulties, since 1985 Singapore has attempted to revitalize and modernize its bunkering industry, deploying market deregulation to raise service quality and expand consumption. This policy is assessed in terms of its quantitative and qualitative consequences, and as an example of the outcomes of deregulation. Early price reductions achieved substantial market growth, but low-cost bunkering has more recently been significant as a counterbalance to new quality problems generated by unsupervized competition. These have necessitated substantial policy responses in the 1990s which are only now overcoming the setbacks caused by the unregulated market.