Lubmarine Outlines Position in Supply Crisis

Tuesday, October 11, 2005
Marine lubricants supplier TOTAL Lubmarine has outlined its position concerning increasing raw material costs and growing shortages of marine lubricants.

Andrew Knox, Head of Marketing at TOTAL Lubmarine, says, "Recent events have shown how tight the worldwide situation is. This is due to a long historical period of low and decreasing margins which have discouraged the industry from investing.

"With the 2004 and 2005 increases in crude oil and lubricant raw material market prices, industry profitability has worsened, and the incredible acceleration in cost increases in recent months puts the industry in an unprecedented position of vulnerability. Since July, base oil price costs have increased by between 24 and 35 percent.

"We need to increase the end price of marine lubricants between 20 and 30 percent before the end of the year to compensate for the recent increases. If this is not achieved, the short and medium-term outlook for the supply of marine lubricants is bleak."

TOTAL Lubmarine has organized its logistics teams into a permanent "crisis management cell", monitoring its worldwide supply position on a daily basis. As a result, Lubmarine has been able to serve all its customers and to supply all contracted vessels. It continues to work closely with engine manufactures during the supply crisis to find lubrication solutions that will allow shipping companies to continue to burn fuel with a wide range of sulphur content without the risk of increased engine wear.

Andrew Know concludes, "We hope that the whole shipping industry – which continues to develop on a profitable basis - will understand that the long-term sustainable supply of marine lubricants is mainly in their hands."

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Cruise Ship Trends

Wärtsilä Expects 5% Sales Growth

Wärtsilä announced its third quarter results, reporting that it sees good development in order intake and profitability. According to Wärtsilä, third quarter

Holland America Line & Seabourn names Kammerer is V.P

Mark Kammerer has been named vice president, international marketing and sales for Holland America Line and Seabourn. In this role, he will be responsible for the companies’ sales offices in the U.

Cruise Ship Returns to Texas after Ebola Concern

The Carnival Magic cruise ship was en route back to the United States on Saturday with a passenger from Texas who might have handled specimens of the first Ebola

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1608 sec (6 req/sec)