Mon 11 Nov 2013 09:27

Financial prudence the key to bunker trade success


GAC Bunker Fuels director to stress the importance of balancing the numbers in upcoming event.



The importance of balancing the numbers for a successful bunker fuel trading operation will be stressed by GAC's Nicholas Browne when he shares his experience at the Lloyds Maritime Academy Bunker Management School this week.

In his speech, the Global Director of GAC Bunker Fuels is due to outline what bunker traders need to keep in mind making the judgement calls they face every day. What are the criteria for granting credit to a new customer? How can they minimize their risk exposure? What checks should be made before accepting a new client?

In a separate session, Browne is expected to discuss the various purchasing methods used in today's bunker trade including reverse auctions, panels and price pressing.

According to GAC, his central theme will focus on the bottom line. Getting prompt and pain-free payment for delivered supplies has always been a thorny issue in the bunkers trade. In the current financial climate of volatile prices, strict emission controls and geographical spread, traders must be sure that their clients can and will pay up if they want to secure their own financial stability and, ultimately, survival.

"The bunker trade has become more complicated in recent years," he remarked. "On average, bunker costs represent about 70% of a vessel's purchasing expenses and as rising prices mean tighter margins, the only way to grow business is to make the money you have work for you. Delayed payments, extended credit lines and defaults can put an end to serenity even of the biggest market players. Traders need to think smart when selecting their suppliers, and be aware of the warning signs to watch out for before offering a credit. Cash – and its healthy flow – is king."

Browne will join other trade experts sharing their expertise and experience at the Bunker Management School in London on 11-13 November.

Over the course of three days, the key focus will be on three pillars of the bunker trade: optimising operations, exploring commercial trends, and understanding the legal framework.

Martin Vorgod, CEO of Global Risk Management. Martin Vorgod elevated to CEO of Global Risk Management  

Vorgod, currently CCO at GRM, will officially step in as CEO on December 1, succeeding Peder Møller.

Dorthe Bendtsen, KPI OceanConnect. Dorthe Bendtsen named interim CEO of KPI OceanConnect  

Officer with background in operations and governance to steer firm through transition as it searches for permanent leadership.

Bunker Holding's executive management team, from left to right: CCO Anders Grønborg,  COO Peder Møller, CEO Keld R. Demant and CFO Michael Krabbe. Bunker Holding revamps commercial department and management team  

CCO departs; commercial activities divided into sales and operations.

Image of a bunker delivery being performed by Peninsula's Hercules 8000 tanker vessel. Peninsula extends UAE coverage into Abu Dhabi and Jebel Ali  

Supplier to provide 'full range of products' after securing bunker licences.

A screenshot taken from Peninsula's homepage on October 4, 2024. Peninsula to receive first of four tankers in Q2 2025  

Methanol-ready vessels form part of bunker supplier's fleet renewal programme.

Stephen Robinson, pictured on his appointment as Head of Bunker Strategy and Procurement at Tankers International. Stephen Robinson heads up bunker desk at Tankers International  

Former Bomin and Cockett MD appointed Head of Bunker Strategy and Procurement.

Chart showing percentage of off-spec and on-spec samples by fuel type, according to VPS. Is your vessel fully protected from the dangers of poor-quality fuel? | Steve Bee, VPS  

Commercial Director highlights issues linked to purchasing fuel and testing quality against old marine fuel standards.

Ships at the Tecon container terminal at the Port of Suape, Brazil. GDE Marine targets Suape LSMGO by year-end  

Expansion plan revealed following '100% incident-free' first month of VLSFO deliveries.

Hercules Tanker Management and Hyundai Mipo Dockyard sign bunker vessel agreement Peninsula CEO seals deal to build LNG bunker vessel  

Agreement signed through shipping company Hercules Tanker Management.

Illustration of Kotug tugboat and the logos of Auramarine and Sanmar Shipyards. Auramarine supply system chosen for landmark methanol-fuelled tugs  

Vessels to enter into service in mid-2025.


↑  Back to Top