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

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

Continue Reading

FuelEU

Ahti Climate and DNV connect verified emissions data to FuelEU pooling platform

New integration connects Ahti’s FuelEU pooling platform with DNV’s verification services, Veracity, helping customers reduce manual administration and streamline compliance.

Admin

Published

on

By

Ahti Climate brings DNV-verified emissions data into FuelEU pooling platform

Ahti Climate on Monday (31 August) announced a new integration with Veracity, DNV’s independent industry cloud platform, enabling shipowners and operators to seamlessly transfer DNV-verified emissions data into Ahti’s FuelEU pooling platform. 

The integration simplifies emissions reporting by connecting operational data verification with FuelEU compliance workflows, helping customers reduce manual administration, improve data quality and confidently meet regulatory requirements.

For customers such as shipping company Bore Ltd, the integration streamlines the flow of emissions data between verification and compliance systems. Raw fuel consumption data is automatically converted into the required OVD format and submitted for DNV verification through Veracity. Once verified, the emissions figures are securely shared with Ahti’s FuelEU pooling platform, creating a more efficient workflow with less manual administration and greater confidence in reported emissions data.

“Being on one of the surplus generators of the pool, trust in the data is everything for us – we need to know the numbers we’re selling hold up to scrutiny. With verified emissions data flowing straight from Veracity by DNV into the Ahti Pooling Platform, we no longer have to manually cross-check figures before every transaction. It gives us confidence that what we’re bringing to the pool is accurate, and that our partners can rely on it too,” said Marcus Strand ICT Manager at Bore Ltd. 

The integration enables customers to:

  • Reduce manual data entry and administrative workload
  • Improve data quality and reduce the risk of reporting errors
  • Securely exchange verified emissions data across systems and stakeholders
  • Increase transparency and confidence in compliance reporting
  • Connect commercial, operational and compliance workflows
  • Reduce turnaround times for reporting and voyage settlements

“Every partnership we build comes back to the same question: does this make compliance easier for shipowners? With Veracity by DNV, the answer is clearly yes – verified data, connected systems, and one less thing for our customers to worry about,” said Risto-Juhani Kariranta, CEO of Ahti Climate. 

With connectivity to the majority of the world fleet, Veracity’s trusted partner ecosystem, combined with Ahti’s expertise in FuelEU pooling, gives shipowners a more connected approach to emissions verification and compliance. By enabling verified data to flow securely between systems, the partnership helps customers reduce complexity and get greater value from their data and access a growing network of digital solutions.

 

Photo credit: Ahti Climate
Published: 1 September, 2026

Continue Reading

Decarbonisation

NAPA: Why operational efficiency remains shipping’s golden ticket

With regulation tightening and alternative fuels still evolving, Pekka Pakkanen says operational efficiency offers shipping an immediate, scalable way to cut fuel use, emissions and costs.

Admin

Published

on

By

NAPA: Why operational efficiency remains shipping’s golden ticket

Shipping’s decarbonisation ambitions are clear but turning that ambition into commercially viable emissions reductions at scale remains a challenge.

As regulatory requirements tighten and fuel markets remain volatile, Pekka Pakkanen, Executive Vice President, Shipping Solutions, NAPA, says operational efficiency is emerging as one of the most immediate and scalable levers available to shipowners, with digital tools increasingly helping to maximise the benefits of energy efficiency technologies: 

The shipping industry’s decarbonization drive does not lack ambition – that is visible in the pace of innovation and research we see around us. But translating that ambition into action at scale and in a commercially viable way remains a different challenge altogether. The International Maritime Organization’s MEPC 84, which concluded in April 2026, reminded us of both how far we have come and how much complexity still remains.

Discussions around the Net-Zero Framework continued, with delegates agreeing to seek further consensus on key adjustments later in October 2026, while progress was made across several other fronts. Separately, the adoption of amendments designating the North-East Atlantic as a new Emission Control Area for Sulphur Oxides (Sox), particulate matter and nitrogen oxides (Nox) is a significant achievement. At the same time, the second phase of the review of the Ship Energy Efficiency Management Plan (SEEMP) and the Carbon Intensity Indicator (CII) began, focusing mainly on enhancing the SEEMP.

Progress, though incremental, is still being made in an environment defined by mounting regulatory obligations, volatile fuel markets, and a clean technology landscape still maturing. All these factors create a backdrop of uncertainty. It’s a word used often to describe shipping’s operating environment and still stands the test of time.

Why energy efficiency technologies remain key

Despite knowing this, the argument I want to put forward is a simple one that can help cut through the uncertainty. The single most accessible, most immediate, commercially viable and scalable lever available to shipping today for managing decarbonization is operational efficiency. Not instead of alternative fuels or new vessel technologies, but as the foundation on which everything else must be built.

Fuel price volatility has made efficiency a financial necessity as much as an environmental one. The European Union Emissions Trading System (EU ETS) and FuelEU Maritime are already in effect and tightening year on year. Add to this the second phase of the CII and SEEMP review, which MEPC 84 formally commenced, and all signs point to the need for operational performance data, optimization and reporting.

In today’s market, efficiency is both a sustainability metric and a margin protection strategy. Every tonne of fuel saved reduces exposure to volatile fuel prices, emissions costs, and operational uncertainty. The question for shipping executives is, therefore, is how to maximize the impact of efficiency.

The answer increasingly lies in the intelligent combination of digital tools and energy efficiency technologies. One development that has captured significant industry attention is the growing integration of wind-assisted propulsion systems (WAPS) with voyage optimization software. Harnessing the power of the wind is not just about installing sails, wings, or kites – it is also about navigating the inherent challenges that come with wind propulsion, from complex and fast-evolving weather patterns to training crew. Operating wind-assisted propulsion vessels requires both careful pre-planning and adjustments throughout a ship’s journey. Fast-evolving wind speed and direction, as well as waves and currents, must be assessed and constantly re-assessed throughout the voyage to determine the best possible route. Wind-assisted vessels need to catch winds at the right speeds and angles to make the most of their wings, rotors, or sails, which demands continuous route and speed modelling throughout the voyage not just before it. Relying on traditional means and manual methods alone risks leaving a lot of savings on the table. Instead, understanding changes in wind patterns and using this to the vessel’s advantage requires advanced digital tools.

Classification societies have also been responding to the increase in WAPS on the market and have included specific stability rule checks, which digital tools can help comply with. WAPS typically add weight to a vessel’s upper structure, shifting its center of gravity and creating additional stability considerations to be managed. Digital tools, within NAPA Design, can be used to calculate vessel stability characteristics and help users check their design’s performance against multiple classification society rules as well. These are all essential considerations to ensure the solution continues performing optimally.

Whether the technology is wind-assisted propulsion or air lubrication technology, digital technologies can help maximize the savings they deliver. Users can measure performance, adapt operations continuously and make decisions based on reliable data, which can then inform future investments in energy efficiency technologies.

MEPC 84 makes progress on the foundations underpinning global decarbonization 

The expansion of ECAs at MEPC 84 – including the newly designated North-East Atlantic zone – adds another layer of complexity. Research has consistently shown that ECA avoidance through route deviation is rarely the optimal commercial or environmental response; the fuel costs and schedule implications of detours frequently outweigh the cost of sailing through the zone with compliant fuel. Voyage optimization tools model these trade-offs in real time to help make better decisions than human assumptions alone.

MEPC 84 also progressed a review of the SEEMP framework, which remains central to how vessels document and demonstrate their carbon intensity management. The direction of travel is towards increased expectations around the quality, granularity, and integration of performance data. As regulatory frameworks increasingly rely on verifiable performance data, the quality of operational data becomes just as important as the technologies being measured. Poor data quality can undermine both compliance confidence and optimization efforts. Shipowners who have already invested in the digital infrastructure to capture and act on operational data will find themselves significantly better positioned, both for compliance and for commercial advantage.

The case for integrated data systems – platforms that bring together performance analytics, voyage planning, regulatory compliance, and reporting in a coherent interface – is a response to genuine operational needs. When data from signals, noon reports, and logbook entries can be brought together on one platform to produce clear, actionable insights, crews spend less time managing information and more time using it. The same shared source of operational truth also supports better ship to shore collaboration to support real-time route and speed optimization, continuous hull performance monitoring, and integrated compliance management.

None of this diminishes the importance of the longer-term energy transition. Alternative fuels, new energy efficiency technologies, and next-generation vessel design all have a critical role to play in reaching net zero by 2050. But those transitions take time, capital, and regulatory frameworks that are still being finalized. In the interim, and complementing those transitions, operational efficiency represents a proven, scalable, and commercially viable path to meaningful emissions reduction. The industry does not need to wait for its decarbonization ‘golden ticket’ to arrive from future technology. It already holds one. The challenge now is not identifying opportunities for efficiency but capturing them consistently across fleets and voyages.

 

Photo credit: NAPA
Published: 28 August, 2026

Continue Reading

Alternative Fuels

GEA to provide global ethanol fuel data for DNV’s AFI platform

Nathaniel Frithiof, Sales Lead Digital Products at DNV, says the company expects GEA’s new data intelligence to give AFI customers greater confidence when exploring new pathways for marine fuels.

Admin

Published

on

By

DNV AFI

The Global Ethanol Association (GEA) and DNV on Monday (24 August) announced the launch of a three-year Ethanol Data Intelligence Partnership, marking an important expansion of their activities in ethanol research and data intelligence. 

The collaboration will support the development of a structured global ethanol database together with ongoing research, data maintenance and regular updates throughout the partnership.

Under the agreement, GEA will develop and provide comprehensive ethanol fuel data intelligence which will be integrated and made available to users of DNV’s Alternative Fuels Insight (AFI) platform. This initiative is designed to improve visibility and transparency across the global ethanol industry by bringing together structured and traceable information on ethanol production facilities and their characteristics from a fuelgrade perspective.

 The research will progressively capture and map key information including production facilities and their locations, production capacities, feedstocks and raw materials, fuel and output categories, based on documented and traceable sources. The research framework places particular emphasis on data quality and source traceability, drawing on publicly available and other verifiable information.

“With Morten Jacobsen, our Secretary General, and on behalf of our association, we are very pleased to develop this new capability, which further reinforces our role as an international coordination and execution platform for the ethanol industry,” said Sylvain Zurcher, President of the Global Ethanol Association.

“Through this collaboration, we are establishing the research infrastructure needed to map ethanol production facilities globally from a fuel-grade perspective and transform fragmented information into structured and traceable market intelligence. By providing greater visibility into areas such as production capacity, feedstocks, fuel categories and other fields of research, our objective is to help reduce information asymmetries for market participants and support better-informed decisions across the ethanol value chain.”

“As we have expanded and added new assets to the AFI platform we have always looked to build around the provision of high quality, verifiable data. And from our first meeting with GEA we have been very impressed by their commitment to providing the industry with solid insights on ethanol and the way they have already been able to build a solid network within the industry. This is looking to be a very productive partnership, and we are positive that this new data intelligence from GEA will enable our AFI customers to explore new shipping fuel pathways with confidence,” said Nathaniel Frithiof, Sales Lead Digital Products, DNV.

By developing a dedicated ethanol research and data intelligence capability, GEA aims to strengthen the information infrastructure available to organizations who are looking to evaluate ethanol across both emerging and established markets and applications. This new activity complements GEA’s existing work across its marine and aviation sector initiatives, project groups, policy engagement, and market-development activities.

 

Photo credit: DNV
Published: 25 August, 2026

Continue Reading
Advertisement

OUR INDUSTRY PARTNERS



Trending