Panellists representing interests from the bunker trading and purchasing sectors shared their experience during the pandemic and presented an outlook during the International Bunker Industry Association (IBIA) ‘Bunkering & Shipping in Transition’ conference on Monday (12 April).
Session Two: Coping with Covid covered many aspects of the pandemic impacting the bunkering industry, and provided a particular focus on credit in relation to rising bunker prices on the back of recovering markets post 2020.
“It’s pretty clear liquidity of cash and working capital are strategic and structural issues going forward, not just for our [bunkering] industry but for the shipping industry alike. And it is predominantly related to companies providing sustainable proof of adapting to decarbonisation,” said Cem Saral, CEO of Cockett Group.
“Decarbonisation efforts will have an impact on how banks view businesses that support shipping business including our business. And if you compound that with the issue of significantly increased governance needed for the bunkering industry […] these are two pressing concerns before unit prices become an issue.
“Maintaining a sustainable working capital and relationship with financial institutions are a challenge for the second half of this year. It is strategic change and transformation that I think some of us are better suited than others in adapting.”
Svend Stenberg Mølholt, Group COO at Monjasa, commented on the management of increasing credit lines with VLSFO prices being approximately 50% higher than where HSFO was.
“I think we can agree that we are surely seeing a further request on the credit side when it comes from rising oil prices. As a trader and also physical provider, this also means some of these operations are back to back on credit lines,” notes Mølholt.
“So we are getting further credit from suppliers and we are extending the same on levels to customers. But, of course, if prices continue going up, there’s going to be a further push for credit in the industry.
“As of now, we don’t see the oil prices high enough to pose a real challenge. I think one theme that we discussed earlier, which is the drive from the financing partners on transparency, shows there is greater understanding [needed] of our business. When you’re able to do that, the funding picture, I think, looks reasonable in light of current oil prices.”
Published: 16 April, 2021
On 5th June 2021, VPS carried out a Remaining On Board (R.O.B.) survey on board a Singapore-registered bunker tanker at short notice by the Charterer and quickly identified the theft of 98 metric tons of bunker fuel.
The Bunkerchain Pte Ltd and Helmsman LLC sponsored event will be moderated by Gabian Chew, Senior Editor of Singapore bunkering publication Manifold Times.
No quarantine required if vessels have not called at Brazil, India, Nepal, Pakistan, the Philippines and South Africa during the 21 days prior to arrival at Hong Kong port, according to Marine Department notice.
CCIC discuss the progression of MFM technology for bunkering at Singapore port with Manifold Times; and possible development of a primary facility for MFM calibration.
‘The acquisition of PGI Industries will enhance VPS’ preventative maintenance services offered to the power sector, increasing protection and sustainability of the asset,’ says Malcolm Cooper, CEO, VPS.
A foreign vessel was involved in an alleged unauthorised STS incident with bunker tanker Pearl Melody on 5 June, Director and General Manager of Consort Bunkers tells Manifold Times.
14 Jun 2021