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Uruguayan bunker supply firm Estimar S.A. has today confirmed that it is in the process of closing down its business operation.

Speaking to Bunker Index, General Manager Luis Laffort said the company had effectively stopped operating as a marine fuels supplier on July 1 and was in the process of closing down all of its operations to cease trading as a business.

Estimar has been the leading player in Uruguay's bunker market, supplying principally to customers in Alpha Zone, off Montevideo, and commanding a market share of 37-40 percent. The company has had close links to Norwegian bunker trading company Scandinavian Bunkering, which has acted as Estimar's exclusive worldwide agent for several years.

The decision to pull out of the market appears to be a direct result of the recent decrease in sales volumes in Uruguay, which has mainly been due to higher bunker prices compared to neighbouring markets and improved logistics and product availability in Argentina. Whereas Uruguay was previously able to regularly take advantage of any product availability issues in Argentina, the improved logistics situation there means that sales volumes in Uruguay have been affected as a result.

Bunker volumes in Uruguay are estimated to have fallen from 300,000 - 336,000 tonnes per year (25,000 - 28,000 tonnes per month) to around 156,000 tonnes per year (13,000 tonnes per month).

Whereas its competitors, Christophersen SA and OW Bunker, have been operating with just one vessel, Estimar has been supplying with three delivery ships. Thus the company will have been hit harder by higher operating costs.

Oscar Gomez, Commercial Manager at Christophersen, said he expected to see a 50-50 market share between the two suppliers left in the market following the exit of the Estimar-Scandinavian business venture.