Financial Prudence the Key to Bunker Trade Success

MarineLink.com
Monday, November 11, 2013

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 will outline what bunker traders need to keep in mind making the judgment 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 will discuss the various purchasing methods used in today's bunker trade including reverse auctions, panels and price pressing.

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 adds. "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 November 11-13. Over the course of three days, the key focus will be on three pillars of the bunker trade: optimizing operations, exploring commercial trends, and understanding the legal framework.
 

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

People & Company News

Lifting Specialists Modulift, IMES form Joint Venture

Lifting industry specialists Modulift and IMES have formed a joint venture to offer an integrated management service to clients internationally.   The two companies

Chinese PM Inks 2 Agreements During CMA CGM Visit

The CMA CGM Group hosted the Chinese Prime Minister, the French Foreign Affairs Minister and a ministerial delegation at its headquarters in Marseilles, July 1, the global shipping company announced.

Shell Green Lights GoM Field After Cost Cuts

Royal Dutch Shell has given the green light for the development of its largest platform in the Gulf of Mexico after making steep cost cuts which made the deep water

News

Yanmar Diesel Engines for Fast New Crew Tender

The expansion of the number of wind turbines out at sea near the northern Dutch coast was reason enough for Ubels Offshore to expand its fleet with a fifth ship last year.

Charleston Harbor Deepening Gets US Funding

Charleston Harbor deepening project earns key federal funding for preconstruction engineering and design; U.S. Army Corps of Engineers allocates $1.303 million

Lifting Specialists Modulift, IMES form Joint Venture

Lifting industry specialists Modulift and IMES have formed a joint venture to offer an integrated management service to clients internationally.   The two companies

Vessels

Yanmar Diesel Engines for Fast New Crew Tender

The expansion of the number of wind turbines out at sea near the northern Dutch coast was reason enough for Ubels Offshore to expand its fleet with a fifth ship last year.

Hapag-Lloyd's New Noses Lower Emissions

Hamburg based shipping company Hapag-Lloyd plans for 24 of the largest containerships in its fleet to get new bulbous bows by 2016, with some of the vessels also

The Hour of Power: Hybrid Marine Technology and Green Ports

In 2015 two significant developments are going to make many operators, owners and builders of professional vessels consider hybrid marine power. Firstly the new emissions laws in ports,

 
 
Maritime Contracts Maritime Standards Naval Architecture Navigation Pod Propulsion Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
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: 0.1790 sec (6 req/sec)