SIBCON 2024: Bunkering conglomerates point out need of ‘level playing field’ on shipping’s multi-fuel future
- Published
by Admin
Representatives of bunkering conglomerates KPI OceanConnect and TFG Marine on Wednesday (9 October) highlighted a need for the entire marine fuels supply chain to work together to tackle stricter maritime environment policies surrounding IMO 2030, FuelEU Maritime and more.
They were responding to a comment posed by the moderator of the International Trade and Fuel Market Trends panel discussion session during the 23rd Singapore International Bunkering Conference and Exhibition (SIBCON 2024).
The moderator explained of the International Maritime Organization (IMO) having to “knit together” the different approaches taken by each country for decarbonising their own individual shipping sector.
“At the conglomerate that I represent, we have both shipping and physical bunker supply operations as well. I think one of the most important things is a clear message around the regulations and how these are policed,” said Anders Grønborg, Chief Executive Officer, KPI OceanConnect.
Grønborg pointed out IMO 2020 enforcement procedures were unsimilar at different ports around the world; the inconsistency provides a forecast on how IMO 2030 could be administered around the world.
“If we create different markets for different shipowners, for different ships, for different regions, we’re going to have a problem in having a level playing field,” he added.
“We’ve got to have some kind of level playing field, where everybody’s policed the same way, charged the same way. Otherwise, it’s going to be a problem. It’s going to be an imbalanced market.”
Kenneth Dam, Global Head of Bunkering, TFG Marine believed there won’t be a level playing field if current conditions persist.
“The future depends on our collaboration,” stated Dam.
“Each port is likely to adopt its own strategy for attracting bunker demand and investments, and collaboration is key. We need to work closely together to find solutions.
TFG Marine was established as a joint venture between Trafigura, Frontline and Golden Ocean to ensure a reliable supply of high-quality bunker fuel at key locations. More collaborations like this are needed by suppliers, traders and buyers.
Dam also highlighted that “We’re moving towards a multi-fuel bunker market which introduces new complexity.”
“We anticipate a division in the bunker industry into different market tiers – tier one, two and three, both on the procurement and supply sides.
“The FuelEU Maritime regulations set to take effect on January 1, 2025 will create a super interesting environment. In two years’ time at SIBCON 2026 we’ll be witnessing a vastly different bunker market.”
Photo credit: Manifold Times
Published: 16 October 2024
