Chief Shipping Analyst at BIMCO, Peter Sand on Tuesday (6 October) discussed some key dynamics and trends that he feels will emerge in the bunker industry moving forward, considering how Covid-19 related problems have changed the economic landscape, while providing advice on how to stay competitive in such an environment.
A new business dynamic: trustworthy relationships and hassle-free bunker procurement:
“I think that many of the new dynamics in the marine fuel sector will be led by the hubs and supported by local authorities,” shared Sand.
Sand added that while Singapore is the world’s largest bunkering hub and is a leader in its own way, it also faces many of its own issues and thus “in the bunkering and shipping industry, it isn’t always hassle free to go buy bunkers anywhere in the world”.
Moving forward, Sand sees the element of trust as a key value proposition that bunkering businesses can embrace if entities were to integrate it into their existing system.
He adds that trust is such an inherent part of the new business dynamic that shipowners and operators could see more returns shifting away from chasing that extra dollar of discounted price to investing in a solid relationship with the bunker supplier instead.
If a mutual trustworthy relationship is built into the system, shipowners can then avoid the hassles that come with bunker procurement because they can trust the counterparties.
What is the potential consolidation among suppliers and traders?
Looking at how the industry is composed today, large independent distributors take up the lion’s share, the majors second, and then the small independent ones, believes Sand.
Bearing in mind the fuel quality issues with low sulphur fuel, everyone is seeking: a competitive price, high quality and ensure availability on a global scale; this is something not always available from small independent distributors.
Moving forward, Sand observes that any consolidation trends will be a diminishing of small independent distributors, and an effect of this trend is to develop higher reliability in the industry.
Peter Sand’s top three tips on how to stay competitive are:
A series of SIBCON 2020 related articles have been earlier written by Manifold Times:
Related: Chairman of Technical Committee for Bunkering explains SS 660, TR 80; and cast an eye to the future
Related: SIBCON 2020: TR 48 reaps annual savings of at least SGD 80 million for bunkering sector
Related: SIBCON 2020: Singapore introduces new MFM bunkering standards SS 660 and TR 80
Related: SIBCON 2020: Powering Fuels of the Future, Driving towards Decarbonisation
Related: SIBCON 2020: Senior Minister highlights ‘quality resilience and sustainability’ for bunkering sector
Related: Infineum explains: ISO 8217:2017 should be viewed as a ‘minimum performance benchmark’ for VLSFOs
Related: Interview: Hafnia shares IMO 2020 preparations, promotes transparency for bunkering operations
Related: VPS: Shipowners face ‘tricky situation’ to balance VLSFO shelf life and wax appearance temperature
Related: VPS: Big data analysis reveals link between Covid-19 and spike in low flashpoint MGO off-spec cases
Related: Interview: Total Marine Fuels Global Solutions discusses sector growth, IMO 2020, and future plans
Related: SIBCON 2020: Evolution to a ‘completely different’ bunkering industry event, says organiser
Related: Singapore: SIBCON 2020 bunkering event to be hosted virtually
Photo credit: SIBCON 2020
Published: 7 October, 2020
Legal representatives met at the High Court on Tuesday to discuss the discharge of KPMG liquidators from all liability in respect of conduct in the course of winding up, show court documents.
Global sentence adjusts to 80 month’s imprisonment term for both Chang and Koh under application of the Masui sentencing framework; fine of SGD 6.2 million against Chang remains unchanged.
Company has been ranked EIGHTH for 2020; ‘we are humbled and proud to be placed amongst the top ten winners of the Enterprise 50 Awards,’ says Satnam Singh, COO, Sing Fuels.
Mads Bjornebye, Manager of Bunker Services at Teekay Tankers Ltd, shares about the company’s perspective of e-BDNs, bunker purchasing & planning tools, while offering his thoughts on future marine fuels.
Maritime sector may find it increasingly challenging to manage bunker prices, Dennis Ho, Managing Director at ElbOil Singapore tells Singapore bunkering publication Manifold Times.
NBF mulls use of blockchain-based registry of trade finance transactions as secure central database for the banking industry to streamline documentation processes and resolve transparency issues.