Dynamic Oil Trading Urges Greater Due Digilence

By Michelle Howard
Monday, June 09, 2014

Dynamic Oil Trading, a global trading company for marine fuels and lubricants, has highlighted the important role of fuel suppliers in helping shipping companies to reduce their exposure to fuel quality and quantity risks, including bunker fraud.
 
Dynamic Oil Trading welcomes the steps taken to drive up professional standards within the industry and the use of the latest technology, such as Mass Flow Meters.  However, it believes that ship owners can achieve even greater assurance over fuel quality and quantity by developing longer-term, partnership-based relationships with bunker suppliers that will work with them to reduce their exposure to disputes and fraudulent behaviour.
 
Lars Møller, CEO, Dynamic Oil Trading, said, “Understandably, following the Maritime and Port Authority of Singapore’s decision to make mass flow meters mandatory from 2017, there is greater optimism about the role that this technology can play in reducing short deliveries, whether accidental or deliberate. However, even where mass flow meters are available, ship owners need to be aware of other factors that can give rise to disputes, not just over fuel quantity, but also off-spec products or fuel contamination.  This can have extremely serious consequences, including non-compliance with emissions regulations and damage to engine components."
 
“Under pressure to keep their costs down amid low freight rates and high bunker prices, it is easy to see how ship owners could be tempted to cut corners when it comes to conducting due diligence on their bunkering purchasing decisions, perhaps by purchasing the fuel directly from the cheapest local supplier. However, they need to be aware of the risks that this poses, not just in terms of bunker fraud but also other risks that can threaten their operational activities and their reputation, as well as proving very expensive.  Whilst the ultimate responsibility rests with shipping companies for who they choose to procure their fuel from, we firmly believe that they should take advantage of the local supply chain knowledge held by well-established bunker suppliers.  
 
“Companies like Dynamic Oil Trading can significantly reduce the risk involved in bunker procurement by acting as a shipping company’s intermediary.  We only work with physical suppliers that we know to be reputable, trustworthy and committed to upholding high operational standards.  In this way, our customers can have total confidence in the security of the fuel supply chain and that their exposure to fraud is minimised.”
 
Dynamic Oil Trading advises that ship owners should review their fuel suppliers against a simple checklist of what to look for, including the local knowledge and experience of its staff, the due diligence conducted into its recommended physical suppliers and a proven track record when it comes to a low incidence of bunker disputes or claims.
 
Møller continued, “This is the reason why, when expanding our global workforce, Dynamic Oil Trading places great emphasis on working with traders with widespread and excellent relations with all parties in the bunker fuel supply chain. We want to make fuel purchasing as straightforward and low risk for our customers as feasible. An important part of this process is maintaining close relationships with suppliers who can be relied on to deliver the high quality fuel our customers need, whenever and wherever they need it.”
 

 

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

People & Company News

Rohr Dredge Continues European Expansion

Rohr International Dredge Holdings, Inc. announced that it acquired Eurl Rohr France, including its current backlog, inventory and all associated intellectual property (IPR), on July 23, 2014.

Petroecuador Tenders to Buy 3.84m bbls of Naphtha

State-run oil company Petroecuador has launched tenders to buy a total volume of 3.84 million barrels of naphtha for delivery in the coming month at Esmeraldas,

Voith to Exhibit High Efficiency and DP Systems at SMM

At this year’s SMM in Hamburg, Voith will showcase propulsion systems and vessel concepts focusing on high efficiency and dynamic positioning even under challenging conditions.

Technology

Globecomm to Provide VSAT for PBJV Barge

Purpose-built accommodation and pipe-lay barge on charter to Petronas equipped with VSAT and L-Band services. Globecomm Maritime has been awarded a contract

LiveCom Selects iDirect Evolution to Enable Global Expansion

iDirect Asia Pte Ltd today announced that LiveCom Limited (“LiveCom”), a Hong Kong based ISP, has selected Evolution as the platform to help enterprise and government

FLNG Prelude: A New Dawn in the Age of Maritime & Energy

Longer than four football fields, as big as six Nimitz-class aircraft carriers and almost as tall as the Taipei 101 skyscraper, Royal Dutch Shell PLC is hoping that its record-setting,

Fuels & Lubes

Business is Brisk at Posidonia in Athens

In early June, the shipping community met in Athens, Greece for Posidonia 2014. While the focus in Athens tends to be skewed more toward the night life and after hour parties,

U.S. Marshalls Ordered to Seize Kurdish Oil Cargo off Texas

Acting on a request from the central government in Iraq, a U.S. judge has signed an order telling the U.S. Marshals Service to seize a cargo of oil from Iraqi Kurdistan

Tripoli Airport Ablaze, Rockets Leave Libya in Chaos

Diplomats flee Libyan chaos; Politicians appeal for international intervention. Clashes in Tripoli, Benghazi kill around 160 over two weeks, while Libyan capital face fuel, power shortages.

News

Rohr Dredge Continues European Expansion

Rohr International Dredge Holdings, Inc. announced that it acquired Eurl Rohr France, including its current backlog, inventory and all associated intellectual property (IPR), on July 23, 2014.

Petroecuador Tenders to Buy 3.84m bbls of Naphtha

State-run oil company Petroecuador has launched tenders to buy a total volume of 3.84 million barrels of naphtha for delivery in the coming month at Esmeraldas,

The Martitime Security Focus Is Shifting

Former Vice-Admiral and Commander-in-chief of the German Navy Hans-Joachim Stricker, President of the German Maritime Institute (DMI), believes that in terms of

 
 
Maritime Careers / Shipboard Positions Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction
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: 0.1173 sec (9 req/sec)