Connect with us

Digital platform

AuctionConnect: Digitalised price negotiations can improve bunker procurement results

Director Per Funch-Nielsen dives deeper on how digitalisation of price negotiations can help reduce bunker fuel costs and offer transparency to the process that was not present in the bunker industry.

Admin

Published

2 years ago

on

AuctionConnect: Digitalised price negotiations can improve bunker procurement results

Per Funch-Nielsen, Director of online auction platform for bunker procurement AuctionConnect, shares how digitalisation of price negotiations offers procurement teams a way to efficiently manage bunker fuel costs while offering a level of transparency to the process that was not previously present in the bunker industry:

 Simple digital tool, significant commercial impact

The basic premise of any digital tool is that it should serve the needs of those that use them and be easy to adopt.

For fuel procurement specialists, where relationships with their suppliers are a critical element to the success of their function, the technology they use to improve the effectiveness of their jobs needs to be an intuitive element of the procurement process. Digitalisation is often driven by wider efficiency considerations, because the digitisation of data and use of technology creates a traceable process and data that can be easily recalled from storage, shared with colleagues and analysed for ways to improve performance.

But while these benefits of digitalisation can lead to wider operational improvements, in a dynamic sector like the bunkering industry, questions may be raised over the ability of technology to simplify elements of the procurement process. Fuel bills today constitute the major part of ship-owners’ operational costs, and procurement teams that can keep these costs down are able to contribute significantly to the commercial sustainability of shipping organisations. 

Good relationships with suppliers play an important part in this process, and digital technologies used by procurement teams must be very easy to adopt and work in support of the relationships, not as a hindrance. 

All along the procurement process, digitalisation helps teams to identify and assess suppliers, handle contract negotiations, and verify quality and quantity of fuel being delivered. The bunkering industry has already embraced digital technologies that allow buyers and suppliers to document and track digitally the quality and quantity of physical goods. Operators have a choice of digital technologies capable of managing these documents.

These digital technologies are notably embedded in procurement teams’ operations and play an important role in supporting them as they build relationships with suppliers. The strength of these relationships is important for ensuring smooth bunkering operations as they enable the buyer and supplier to honestly and openly address any problems that may arise with a delivery.

Digitalised price negotiation

However, with the cost of marine fuel already high and set to rise exponentially on the back of the transition to new energy sources, the digitalisation of price negotiations offers procurement teams a way to manage vital costs as efficiently as possible. A simple online tool, such as the AuctionConnect marketplace, offers a plug and play bunkering procurement solution that aligns quickly and seamlessly into existing digital technologies, with no upfront financial or time investment.

While relying on relationships with suppliers to secure good prices for fuel may intuitively feel like a good idea to procurement teams, there is a lot of evidence to suggest that when it comes to fixing a price for a quantity of bunker fuel, digital technologies can more effectively secure the lowest price for a product, while also lowering the overall cost of procurement. Adopting and embracing digital tools in price negotiations may entail a significant mindset change. Simplicity and ease of implementation are vital to making this change. 

In the AuctionConnect marketplace buyers run auctions that ask fuel suppliers to bid to provide specified fuel at the lowest price per tonne. The buyer controls which suppliers they invite to the auction, so they only need to work with suppliers they know and trust. As the automated auction progresses, suppliers can see the value of the bids against them, while the names of bidders are kept confidential. If a supplier is outbid, they are notified and can provide a counterbid. A chat function allows buyers and suppliers to communicate with each other to build those connections that are essential to the smooth operation of the bunkering industry. Each automated auction lasts 20 minutes. As a plug-and-play online tool, with no APIs, the AuctionConnect marketplace can work easily with other digital technologies used by procurement teams.

Easy and transparent

From identifying and inviting buyers to closing the auction and fixing the price with the winning supplier, the online auction process provided by the AuctionConnect platform makes price negotiation as easy and intuitive as possible for users. It brings a level of transparency to the process that has not previously featured in the bunker industry, because all parties can see exactly what prices are being offered in the live auction. The transparent auction process eliminates the need for procurement teams to spend time chasing conversations with suppliers about bids and counterbids.

The transparency in the marketplace helps fuel procurement teams to realise significant savings on the fuel they purchase, as suppliers are encouraged to provide their lowest possible bid. In analysis of fuel prices fixed through the AuctionConnect marketplace between the start of 2023 and mid-2024, buyers were able to secure an average weighted reduction in fuel prices of USD7 per tonne below Platt’s benchmark rates.

Simple and easy to use digital tools for price negotiation bring dual benefits, The AuctionConnect platform can help procurement teams deliver real savings on fuel costs ‘at source’ and lower the overall cost of procurement by simplifying the negotiating process that enables teams to focus on the relationships that are important to safe and effective bunker procurement. 

Digitalisation is an ongoing process of change for the shipping industry. It requires a significant mindset change for people across the industry. Facilitating this mindset change, to make it easier to adopt digital technologies, means delivering an online tool that effectively serves the needs of the end users that still delivers significant commercial benefits.

Related: AuctionConnect: Buyers must embrace online auction technology to reduce bunker costs

 

Photo credit: AuctionConnect
Published: 20 December, 2024

Related Topics:
Continue Reading

Technology

Singapore: Ofiniti, ONE trial direct platform integration to streamline bunker workflows

Ofiniti started a trial in Singapore, integrating FuelBoss directly with a bunker buyer’s own platform, with Ocean Network Express as its first buyer-side integration partner.

Admin

Published

13 hours ago

on

July 22, 2026

By

Singapore: Ofiniti, ONE trial direct platform integration to streamline bunker workflows

Ofiniti, the digital platform for maritime fuel operations, on Tuesday (21 July) said it has started a trial in Singapore, integrating FuelBoss directly with a bunker buyer’s own platform.

The company announced Singapore-headquartered container shipping firm Ocean Network Express (ONE) as its first buyer-side integration partner. 

“It is no coincidence we start in Singapore, as the Maritime and Port Authority of Singapore (MPA) remains at the forefront of digitalisation of all things bunkering,” the company said in a social media post.

In November 2023, MPA launched its digital bunkering platform, becoming the world’s first port to implement e-BDN. 

Ofiniti said every bunker delivery still runs on retyped data. 

“The buyer’s system says one thing, the supplier says another, and someone reconciles the gap by email, phone, or PDF. On every stem,” the company said. 

“We built FuelBoss to change this reality.”

With the integration, operational data now flows without manual re-entry, fewer reconciliation errors and faster processing and data, instead of documents, are readily available for procurement and claims workflows. 

“One connection will not transform the industry on its own, but digitalisation gets built one integration at a time. We are grateful to ONE for being willing to go first,” Ofiniti added.

Manifold Times previously reported ONE completing its successful trial of the electronic Bunker Delivery Note (e-BDN) with Shell. 

The e-BDN trial, using the digital bunkering solution developed by Angsana Technology, was conducted on 9 September 2023 at the Port of Singapore, with support from the MPA.

In March 2025, Ofiniti acquired Singapore-based Angsana Technology, with the entire Angsana team joining Ofiniti as part of the acquisition.

Related: MPA Chief Executive: Port of Singapore begins digital bunkering initiative today
Related: Singapore set to become first port in the world to debut electronic bunker delivery notes
Related: ONE completes e-BDN adoption trial with Shell in Port of Singapore
Related: Ofiniti acquires Singapore-based Angsana Technology to advance digital bunkering solutions

 

Photo credit: Ofiniti
Published: 22 July, 2026

Continue Reading

Technology

Malaysia: Maharani Freeport to implement MFM and e-BDN technologies for enhanced bunkering transparency

Initiatives reflect the Freeport’s commitment to delivering transparency, operational integrity and international best practices across its bunkering ecosystem, says MEG spokesperson.
Admin

Published

1 week ago

on

July 15, 2026

By

MEG 1145 cropped MT

Maharani Freeport, a National Project officially launched by His Majesty Sultan Ibrahim, King of Malaysia, in November 2025, will be introducing mass flowmeter (MFM) and electronic bunker delivery note (e-BDN) technologies to its bunkering operations, learns Manifold Times.

These strategic initiatives underscore the port’s commitment in establishing a highly transparent, efficient and trustworthy bunkering environment, aligned with global best practices and addressing critical industry demands, according to a Maharani Energy Gateway (MEG) spokesperson.

MEG is the Master Developer of Maharani Freeport and seeks to position the Freeport as a strategic nexus for shipment, storage and trading operations on a global scale. MEG Synergy is the trading division and a wholly owned entity of MEG; it seeks to position Maharani Freeport as a strategic nexus for shipment, storage, and trading operations on a global scale.

As part of its long-term bunkering strategy, the Freeport is currently in the process of acquiring bunker vessels of various sizes to support marine fuel deliveries and accommodate the evolving requirements of regional and international customers. These vessels will be equipped with MFM technology to ensure accurate, transparent and efficient fuel transfer operations.

Including bunkering and ship-to-ship (STS) trading operations from its High Sulphur Fuel Oil (HSFO) Floating Storage Unit (FSU), MEG Synergy already oversees a healthy volume of Bunker cargo deliveries to regional players each month.

MFM for Trust, Transparency and Traceability

MEG highlighted the custody transfer of bunker fuels at the Freeport will be handled by MFM-equipped bunker tankers.

“The adoption of MFM technology to support bunkering operations is a direct response to persistent industry challenges such as quantity discrepancies and delivery disputes,” explained the spokesperson.

“By equipping our bunker vessels with certified mass flowmeters, we aim to ensure precise and verifiable fuel delivery measurements.

“This initiative is pivotal in fostering trust among customers and strengthening the Freeport’s reputation as a professionally managed zone where businesses can operate with confidence. The overarching goal is to create a secure and well-governed environment for commercial activities, reducing operational risks and uncertainties while supporting efficient and transparent trade.”

e-BDN to Digitalise Documentation Workflow

The implementation of electronic bunker delivery notes (e-BDN), together with MFM technology, further aligns with the Freeport’s focus on creating comprehensive digital custody transfer records and robust data retention systems, added the spokesperson.

This digital approach, integrated with MFM technology, will streamline operational workflows, reduce administrative burdens and provide an immutable record of transactions to enhance transparency, minimising potential friction and expediting dispute resolution

MEG emphasised that the Freeport’s commitment extends beyond technological enhancements to encompass a comprehensive governance framework.

The port aims to adhere to stringent international standards, including those established by the International Maritime Organization (IMO), while offering dispute resolution mechanisms under the International Chamber of Commerce (ICC) to ensure the swift and fair handling of disagreements.

This holistic approach to operational integrity and governance is designed to address perceived transparency gaps, positioning the Freeport as a reliable and commercially attractive hub for the maritime and commodities sectors.

Note: For enquiries in respect of Maharani Freeport, readers may reach out to:

[email protected]

Related: Interview: Maharani Energy Gateway – Forging a new energy nexus in the Straits of Malacca
Related: New Johor bunkering hub: Maharani debuts as Malaysia’s first duty-exempted energy freeport

 

Photo credit: Maharani Energy Gateway
Published: 15 July 2026

Continue Reading

Digital platform

Norwegian Cruise Line to enhance bunker procurement process with ZeroNorth

By leveraging ZeroNorth’s Bunker Procurement Solution, NCLH will create greater efficiencies across the bunker procurement process while enhancing transparency, supplier collaboration, and decision-making.

Admin

Published

2 weeks ago

on

July 10, 2026

By

Norwegian Cruise Line to enhance bunker procurement process with ZeroNorth

Maritime technology solutions provider ZeroNorth on Thursday (9 July) said it is partnering with Norwegian Cruise Line Holdings to enhance bunker procurement processes through digital innovation.

“By leveraging ZeroNorth’s Bunker Procurement Solution, NCLH will create greater efficiencies across the bunker procurement process while enhancing transparency, supplier collaboration, and decision-making,” the company said in a social media post. 

ZeroNorth added that fuel procurement is one of the most complex functions in operating a global cruise fleet. 

“Balancing market dynamics, supplier options, operational schedules, and cost considerations require timely insights and the right technology,” it said. 

Lory Urdaneta, Senior Director Energy Strategy at Norwegian Cruise Line Holdings, said: “At Norwegian Cruise Line Holdings, we are committed to embracing innovative technologies that strengthen our operations and deliver long-term value. 

“Our partnership with ZeroNorth is an important step in enhancing our bunker procurement process through greater transparency, data-driven decision-making, and operational efficiencies. We look forward to working together to drive innovation and support the continued evolution of our procurement capabilities.”

 

Photo credit: ZeroNorth
Published: 10 July, 2026

Continue Reading

Trending