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 August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

A Great Passion for Small Ships

Gottfried Knöbel owns almost 1,500 miniature model ships, many of them are Hapag-Lloyd ships. How did he end up with this collection?   In a quiet residential district in Cologne,

Busan Port Names Woo Ye-jong as New CEO

The Busan Port Authority (BPA) announced Woo Ye-jong has been named as its new CEO, as appointed by the Korean Ministry of Oceans and Fisheries.   Woo took office on July 31,

USCG Hoists Ailing Man from Tug

A man believed to be suffering symptoms from a heart attack was medevaced from a tugboat Thursday morning.   A U.S. Coast Guard helicopter crew from Air Station Traverse City, Mich.

Technology

USN's Fourth MUOS Satellite Launched

After a two-day delay due to tropical storm conditions, the Navy's fourth Mobile User Objective System (MUOS) satellite launched at 6:18 a.m. EDT from Space Launch Complex 41.

Husain appointed ABB’s CTO

ABB, the leading power and automation technology group, has appointed Bazmi Husain as Chief Technology Officer (CTO), effective January 1, 2016. Husain, an expert

Dorian Acquires 2 ECO VLGC

Dorian LPG, an owner and operator of modern Very Large Gas Carriers ("VLGCs"), reported today that it has taken delivery of the ECO VLGC Commodore from Hyundai

Fuels & Lubes

Rapid Oil Spill Response Vessel Launched

Western Canada Marine Response Corporation (WCMRC) launched their newest oil spill response vessel in Burrard Inlet. The boat, named after former employee George Penman,

Total Lubmarine Resumes Full Service in Tianjin

Marine lubricants and greases provider Total Lubmarine informs it has resumed all services based out of the Port of Tianjin following the deadly explosions that rocked the port August 12.

LNG-fueled Box Ship a 'Momentous Step Forward'

On Saturday, August 29, 2015, the world’s first series of energy efficient containerships welcomed its second LNG-powered vessel in San Diego, fueling the U.S.

News

A Great Passion for Small Ships

Gottfried Knöbel owns almost 1,500 miniature model ships, many of them are Hapag-Lloyd ships. How did he end up with this collection?   In a quiet residential district in Cologne,

Busan Port Names Woo Ye-jong as New CEO

The Busan Port Authority (BPA) announced Woo Ye-jong has been named as its new CEO, as appointed by the Korean Ministry of Oceans and Fisheries.   Woo took office on July 31,

CTruk Delivers Wind Farm Support Vessel

Shipbuilder CTruk Boats, a manufacturer of composite wind farm support vessels (WFSV), has delivered the second workboat in a two-craft order from CWind.   The

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | 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: 0.5561 sec (2 req/sec)