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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.

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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

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Emissions reporting

ZeroNorth and Veracity by DNV launch end-to-end emissions reporting, verification service

New offering combines ZeroNorth’s Vessel Reporting and Emissions Analytics platform with Veracity platform and DNV’s Emissions Connect verification services to deliver an end-to-end compliance solution.

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ZeroNorth and Veracity by DNV launch end-to-end emissions reporting, verification service

Maritime technology solutions provider ZeroNorth on Friday (16 May) said it has partnered with Veracity by DNV to launch a fully integrated emissions reporting and verification service for the maritime industry. 

Teekay is the first customer that will be implementing the service across its fleet, following successful testing and development.

As regulatory requirements tighten, ZeroNorth said maritime operators face growing demands for emissions transparency and reporting integrity. At the same time, poor data quality remains an industry-wide challenge. 

“The new offering combines ZeroNorth’s Vessel Reporting and Emissions Analytics platform with the Veracity platform and DNV’s Emissions Connect verification services to deliver an end-to-end compliance solution,” the company said in a statement. 

“The offering simplifies compliance by integrating automated data reporting with expert validation, reducing administrative burdens and improving data reliability.”

A key differentiator is the multi-layered data quality feedback loop, which ensures emissions data undergoes rigorous validation at multiple stages. Verification warnings from Veracity by DNV are automatically flagged to ZeroNorth’s data quality team, which then works directly with vessel crews to resolve discrepancies before final submission to authorities. 

This reduces compliance risks and enhances regulatory confidence while supporting continuous monitoring of EU MRV, IMO DCS, CII ratings, EU ETS and FuelEU Maritime compliance.

Teekay, a long-standing customer of ZeroNorth, participated in early testing of the solution and providing operational feedback. Since its successful implementation with Teekay, the service has been rolled out to two additional customers, and further deployments are underway.

Anders Schulze, Chief Operations Officer at ZeroNorth, said: “The maritime industry faces growing pressure to ensure emissions data is not just reported, but verified to the highest standards. Yet fragmented systems and manual processes continue to undermine data quality and increase compliance risk. 

“By combining ZeroNorth’s data and analytics capabilities with Veracity by DNV’s verification expertise, we are directly addressing this challenge. Our goal is to build trust in emissions data and reduce complexity for shipowners and charterers. We’re especially pleased that Teekay, a long-time partner, played a central role in shaping and validating the service.”

Mikkel Skou, Managing Director at Veracity by DNV, said: “At Veracity by DNV, the value of our ecosystem is built on strong partnerships, exemplified by our collaboration with ZeroNorth.

“By integrating trusted data and solutions like ZeroNorth’s Vessel Reporting and Emissions Analytics platform, we create a robust network that supports collaboration and drives sustainable growth in the maritime industry. 

“We look forward to continuing working towards our ambition to deliver trust and connectivity to the industry through this partnership with ZeroNorth.”

Mikkel Seidelin, Chief Commercial Officer at Teekay, said: “Partnering with ZeroNorth improves our ability to navigate complexities seamlessly, leveraging on data and technology to optimise our performance and reduce inefficiencies.

“When we are equipped with verified, end-to-end data, it empowers us as owners towards seamless decision-making, resulting in real sustainable and operational target-achievements.”

 

Photo credit: ZeroNorth
Published: 16 May, 2025

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Business

Shipergy expands global presence with two key hires in Hong Kong and New York

Kingsley Chan joins the company’s operations in Hong Kong, while Michael Bergendorff, who was Managing Director and Partner at The Bunker Firm, takes on a key role in New York.

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Shipergy expands global presence with two key hires in Hong Kong and New York

Tech-driven marine fuel trading company Shipergy on Tuesday (13 May) announced the appointment of two seasoned industry professionals to strengthen its global presence and enhance its service capabilities. 

Kingsley Chan joins the company’s operations in Hong Kong, while Michael Bergendorff takes on a key role in New York, marking significant steps in Shipergy’s ongoing expansion strategy.

“We are delighted to welcome Kingsley and Michael to our growing team,” said Michael Stig Nielsen, CCO of Shipergy. 

“Their extensive industry experience and regional knowledge will be invaluable as we continue to expand our global footprint and deliver exceptional value to our clients across key maritime hubs.”

Bergendorff has over 17 years of experience in the shipping, logistics, and bunkering industry to Shipergy. Most recently serving as Managing Director and Partner at The Bunker Firm, where he oversaw operations in the Americas and APAC regions, Bergendorff’s expertise in developing effective strategies that optimize operations and enhance customer satisfaction aligns perfectly with Shipergy’s client-focused approach.

Chan joins Shipergy with 20 years in sales, account management, and business development. Previously a Bunker Trader at Baseblue, Shipergy said Chan’s experience in the Hong Kong market and understanding of marine products and services will strengthen the company’s presence in the Asian region.

The company has its proprietary technology platform, The Wave, which uses real-time data, AI, and machine learning to provide visibility into fuel quality, availability, and decarbonisation potential.

 

Photo credit: Shipergy
Published: 13 May, 2025

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Technology

Endress+Hauser and Bunkerchain prepared for end-to-end digital transactions of e-BDN integration ops in 2025

Entities showcased their complete solution to delegates during the 23rd Singapore International Bunkering Conference and Exhibition.

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E+H eBDN

Swiss-based mass flowmeter (MFM) manufacturer Endress+Hauser and digital bunkering solutions provider Bunkerchain is preparing their systems in advance for seamless digital bunkering transactions of the Maritime and Port Authority of Singapore (MPA)’s pioneering electronic bunker delivery note (e-BDN) project, learned Manifold Times.

During the 23rd Singapore International Bunkering Conference and Exhibition (SIBCON 2024), spokesmen from Endress+Hauser and Bunkerchain explained to delegates how their systems work in unison to prepare for the upgrade.

“At SIBCON 2024, we showed our digital bunkering solution together with Bunkerchain, one of our partners for e-BDN,” said Mohamed Abdenbi, Global Business Manager Solutions, Endress+Hauser.

“As soon as a bunker operation is completed, our MFM system automatically transmits ticket data to the bunker app of Bunkerchain for e-BDN documentation.

“With this set up we are ready to support end-to-end digital transactions of e-BDN in Singapore.”

According to Mr Abdenbi, full digitalisation of e-BDN implementation at Singapore port will further significantly increase the efficiency to the republic’s bunker industry due to automation and the likelihood of wrong data filled into bunker checklists being reduced to a minimum.

“Data can be easily shared between the different parties to make daily workflows more efficient. This will have a positive effect on productivity of the bunker industry,” he explained.

“We can confirm this when looking at our own Endress+Hauser paperless production processes and the response of our customers who make use of our Netilion* cloud offering.

“Inconsistent data along the different system components would raise questions and doubts.

“Therefore, we believe it is of great importances the MFM vendor offers a complete and interoperable system for data transmission to ensure necessary integrity of data to make life easy for MFM users and authorities by having a central contact.”

FMS Digital Bunkering Solution 03c page 0001

Leon Ling, CEO of Bunkerchain, echoed Mr Abdenbi’s thoughts.

“At SIBCON 2024, Bunkerchain showcased direct connectivity between Endress+Hauser’s MFM system and our e-BDN solution,” he shared.

“This setup enabled seamless data transfer from the MFM to our e-BDN system onboard vessels, even without internet connectivity. This innovation ensures critical bunker data is securely captured and processed in real-time, paving the way for full digitalisation of e-BDN implementation at Singapore port in 2025.”

Use of MFMs, combined with solutions such as e-BDN, streamline workflows by automating data capture to reduce manual errors for secured real-time data sharing among stakeholders, he noted.

These advancements enhance operational accuracy, improve compliance, and establish a robust framework for efficient and sustainable bunker operations.

Global Energy Trading Pte Ltd (GET), the trading arm of Singapore bunker supplier Global Energy Group, earlier announced the successful implementation of Bunkerchain’s e-BDN system.

During Singapore Maritime Week 2024, Bunkerchain signed a Memorandum of Understanding (MoU) with S&P Global Market Intelligence and MPA to pilot the use of digital ship identity in the republic.

*Netilion is a cloud-based IIoT ecosystem designed by Endress+Hauser for industrial processes. It connects the physical and digital worlds to send information from the field straight to the user’s phone, tablet or other device. 

Related: Global Energy Trading selects Bunkerchain e-BDN solution in Singapore
Related: SMW 2024: MPA partners with S&P Global and Bunkerchain in digital ship identity

 

Photo credit: Endress+Hauser
Published: 13 May, 2025

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