There is “no doubt” the bunkering industry will be subjected to market adjustments after 1 January 2020, says the Managing Director, Bunkers, of Singapore-based global energy trading company Sing Fuels Pte Ltd.
Sonnich Thomsen was giving a presentation at the Bunker Fuel & Ballast Water Compliance Conference & Workshop (BuBWCE) when he forecasted the changes IMO 2020 introduces to the marine fuels sector.
“It will be a bumpy ride for the next six months, no doubt about it. However, we very much expect things to stabilise and settle after that,” he told delegates at the Conference Connection organized event.
“We are expecting more claims for low sulphur fuel oil (LSFO) and trading firms will need to do help clients in doing everything possible to minimize or avoid these situations. This by having a diligent approach to quality testing, sample handling, claims mitigation etc.
“Everyone in the industry is familiar with trading and handling high sulphur fuel oil (HSFO) but IMO 2020 will introduce a variety of different grades around the world. One of the trading firm’s role will be to collect vital information and know-how from global suppliers about the types and quality of fuels they are supplying and advise clients accordingly.”
“Traders will have to be extremely professional and function as advisors by being the global eyes and ears on the ground for shipowners. There will also no doubt be an increased liquidity mismatch which trading houses can bridge as suppliers looking for shorter payment terms while customers looking for extended terms.
“Lastly trading firms will play an important part in covering the credit line needs for global customers as the bunker prices are set to increase. Estimations show as much as $4-5 billion worth of credit lines will be short in the bunker industry post 2020. Trading firms will play an important role in bridging this gap going forward.
Photo credit: Sing Fuels
Published: 29 November, 2019
Garren Hay will be responsible for sales of the PANOLIN range of Environmentally Acceptable Lubricants for the Singapore sole distributor agent Gealubes Consulting & Trading Pte Ltd.
Universal Alliance, BMS United, Digiland International, Goodwood Associates, Southernpec (Singapore), and Taigu Energy were involved in alleged circular fictitious trades of fuel oil during July 2015.
Bunker orders of ISO 8217:2010 spec LS 380 cSt 0.5% for Nord Gemini, Nord Titan, Ocean Rosemary, and Luzern were placed through global commodities trading and logistics house Trafigura Pte Ltd.
While Covid-19 concerns are important, Captain Rahul Choudhuri was quick to note this does not mean bunker fuel related issues have indeed disappeared from the shipping sector.
‘Therefore, representing the players of the Malaysian bunker industry, we sincerely hope that this matter can be refined and reconsidered immediately so that all parties benefit together,’ says communication.
Maureen Poh, a Director of Helmsman LLC, offers plain practical tips on the differences between US and EU Sanctions and shares some thoughts on what companies could do if they are potentially exposed to sanctioned entities.