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

Bunker buyers can utilise bunkering procurement technologies that simplify the complexities of traditional price negotiation, increase transparency and reduce the cost of procurement, says firm.

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

Reducing the cost of fuel ‘at source’ needs to be included and considered as the first part of the optimisation process to mitigate against rising fuel costs, said AuctionConnect, an online auction platform for bunker procurement within the shipping industry, on Monday (7 October). 

This is even more important given the significant increase in the cost of future fuels that will drive the energy transition and enable the shipping industry to meet its decarbonisation targets. 

Most procurement departments purchase marine fuels via brokers, traders or direct with suppliers. However, there is also the opportunity to utilise bunkering procurement technologies, available today and free-to-use, that simplify the complexities of traditional price negotiation, increase transparency and reduce the cost of procurement by always ensuring that fuel buyers get the best possible price. 

Platforms like AuctionConnect enable buyers to invite multiple fuel suppliers to bid against each other in reverse auctions and drive bunker fuel prices down below Platts’ rates. Buyers can make substantial savings on each tonne of fuel they purchase, depending on the circumstances in the market and the specific bunkering port.

With future fuels being a key element of meeting the shipping industry’s decarbonisation targets by 2050, there is increasing concern in the market of the high cost of these fuels, which could be as much as five times more expensive in 2030 than fossil fuels. This could become a significant barrier to their development and uptake and impact the meeting of shipping’s sustainability ambitions. 

Many vessel owners’ immediate response to this challenge is to invest in clean technology and efficiency solutions. While they are an important part of the decarbonisation process and in reducing fuel costs, they are also a significant capital investment on top of the increased costs of future fuels. Online auctions offer an easy and low-cost way for buyers to reduce fuel bills even before they consider the hardware or technology to improve energy and fuel efficiency. 

Per Funch-Nielsen, Director, AuctionConnect, said: “Ship owners and operators are already familiar with the importance of using clean technology to reduce fuel consumption to mitigate against rising fuel costs, particularly in a future fuels’ world, 

“Purchasing departments within these organisations now need to change their mindset in relation to fuel procurement and seize the opportunity of reducing the cost of fuel at source, which they should view as the first part of the vessel optimisation process. While the traditional elements of bunkering will always exist in the relationship between buyers and suppliers, the opportunities of digitalising and using technology for transactions are huge in creating efficiencies, transparency and reducing costs.” 

AuctionConnect analysed 1.3 million tonnes fixed on the platform across a range of global ports over an 18-month period against a Platts benchmark, identifying total cost savings of USD 7 per tonne. In a future fuels’ world, this opportunity for cost saving is greater and even more important with the rising costs of fuel.

Funch-Nielsen concludes: “With fuel already the major constituent part of an owner’s operational costs, it is clear that any reduction in these bills is commercially critical, no matter the fuel being used. With fuel costs only rising over the coming years in line with the energy transition, reducing fuel costs, by stripping complexity out of price negotiations and increasing their transparency will be of huge value to owners and operators in an increasingly complex supply chain.”

 

Photo credit: AuctionConnect
Published: 8 October, 2024

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Digital platform

General Index and XMAR to integrate marine fuel pricing data into trading platform

General Index said the partnership aims to provide XMAR’s users with accurate and timely bunker pricing information, enhancing their decision-making processes in the maritime industry.

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General Index and XMAR to integrate marine fuel pricing data into trading platform

Commodity pricing provider General Index recently announced its partnership with online bunker trading platform XMAR to integrate its marine fuel pricing data into their platform.

General Index said the partnership aims to provide XMAR's users with accurate and timely bunker pricing information, enhancing their decision-making processes in the maritime industry.

“Our comprehensive bunker pricing data covers various fuel types and global ports, ensuring that XMAR's users have access to the most relevant and up-to-date information,” it added. 

By incorporating its data into XMAR's platform, users can benefit from:

  • Real-time Pricing: Stay informed with the latest bunker prices across key ports worldwide.
  • Market Transparency: Gain insights into market trends and price fluctuations to make informed purchasing decisions.
  • Customised Data Feeds: Access tailored data solutions that meet specific operational needs.

This integration will empower maritime professionals to optimise their operations and fuel procurement strategies.

“At General Index, we are committed to delivering high-quality, transparent, and independent pricing data to support the maritime industry's evolving needs.

 

Photo credit: General Index
Published: 7 February, 2025

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Technology

StormGeo voyage optimisation solution to be deployed across G2 Ocean fleet

StormGeo’s Voyage Optimisation solution for G2 Ocean combines features such as onboard voyage planning, routing advisory, speed optimisation, and emissions monitoring and reporting.

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StormGeo voyage optimisation solution to be deployed across G2 Ocean fleet

Voyage optimisation and weather intelligence solutions provider StormGeo on Thursday (6 February) announced the expansion of its partnership with G2 Ocean, as its voyage optimisation solution will be deployed across the company’s fleet of 120 vessels. 

The new agreement builds on the success of a long-term collaboration between the two maritime companies, further solidifying G2 Ocean’s confidence in StormGeo’s ability to support their goals of operational efficiency and decarbonisation.

G2 Ocean has selected StormGeo’s Voyage Optimisation solution, which empowers both shoreside and onboard teams to plan and execute optimised, safe voyages. 

By integrating AI-driven insights, advanced technology, weather analytics, and the expertise of StormGeo’s route analysts and operational support professionals, this solution provides comprehensive, data-driven support at every stage of the voyage. 

As a recognised leader in maritime innovation, G2 Ocean is committed to accelerating their digitalisation and decarbonisation efforts in the coming years, with StormGeo as a trusted partner in driving sustainable growth.

Phil Curran, Director Fleet Operations, at G2 Ocean, said: “The foundation for optimising a sea passage is accurate weather prediction coupled with best-in-class routing advice.”

“StormGeo has been the industry leader in providing weather routing service for 25 years and has added to their expertise a suite of innovative tools to ensure we have the most accurate data and decision-making capability.”

“We are confident that their applications are the right combination to enable significant cost and emissions reductions on every voyage.”

Petter Andersen, Senior Vice President, Shipping, at StormGeo, said: “The expansion of our partnership with G2 Ocean is a testament to the strong trust and collaboration we've built over the years.”

“G2 Ocean’s confidence in our Voyage Optimisation solution underscores the value we bring to their fleet in supporting both operational efficiency and sustainability goals.”

StormGeo’s Voyage Optimisation solution for G2 Ocean combines features such as onboard voyage planning, routing advisory, speed optimisation, emissions monitoring and reporting, commercial and technical performance optimisation based on High-Frequency sensor data, and advanced APIs.

Related: Resorts World Cruises selects StormGeo bunker planning and procurement solution
Related: StormGeo markets Bunker Management module at Singapore event
Related: StormGeo and FuelBoss in new partnership to support digitalisation of bunker workflow

 

Photo credit: StormGeo
Published: 7 February, 2025

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Financial Result

ZeroNorth achieves first operating profit in Dec with nearly USD 40 mil revenue in 2024

Firm achieved its first month of positive earnings before EBITDA in December 2024, after four and a half years of operations and reached just under USD 40 million in annual recurring revenue for 2024.

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ZeroNorth achieves first operating profit in Dec with nearly USD 40 mil revenue in 2024

Digital bunkering platform solutions provider ZeroNorth on Thursday (30 February) said it achieved its first month of positive earnings before interest, taxes, depreciation, and amortisation (EBITDA) in December 2024, after four and a half years since its launch. 

The firm said the achievement comes on the back of significant growth, with the company reaching just under USD 40 million in annual recurring revenue (ARR) for the year, a 38% increase from 2023.

“This marks an important milestone for ZeroNorth, particularly at a time when rising interest rates have put increasing pressure on startups and scaleups to prioritise financial sustainability over top-line growth. Despite the challenging economic climate, ZeroNorth has managed to balance growth and profitability, showing its ability to adapt to changing financial conditions,” the company said.

Founded in 2020, ZeroNorth has rapidly become a leader in the maritime industry’s digital transformation, helping more than 230 shipping and energy companies navigate the energy transition with solutions that optimise fuel consumption and reduce emissions. 

ZeroNorth has scaled from a team of six to 600 employees across 10 global locations and completed six strategic acquisitions, including joining forces with Singapore-based Alpha Ori Technologies in February 2024. 

Powered by AI-driven technologies developed in-house, the company has built a unified platform with a significant impact on sustainability and efficiency for customers. In 2024 alone, it optimised 72,000 voyage legs by generating 1.5 million routes, reducing more than one million metric tonnes of CO2 emissions.

ZeroNorth expects to achieve positive EBITDA for the full year 2025, while continuing to execute its growth strategy.

Søren Meyer, CEO of ZeroNorth, said: “Achieving operating profit is an important milestone for ZeroNorth and a reflection of the dedication of our team and the trust of our customers. Reaching this point highlights our ability to build a sustainable business model while scaling rapidly.” 

“More importantly, it reflects the critical role of data and technology as the shipping industry tackles the complexities of the energy transition.”

“With this foundation, we are strongly positioned to accelerate our growth, and continue to enable our customers to make informed decisions, boost efficiency and cut emissions.”

Related: ZeroNorth and Singapore-based Alpha Ori Technologies close deal to merge

 

Photo credit: ZeroNorth
Published: 4 February, 2025

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