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

People & Company News

That’s Not Coming on Board!

There’s hardly anything that can’t be shipped in a container. However, for ethical reasons, Hapag-Lloyd refuses to transport certain goods.   Anyone who regularly transports goods for third parties,

US Navy Awards $22mln Waterfront Inspection Deal

The U.S. Navy has awarded a five-year, $22 million contract to Appledore Marine Engineering, a specialist focusing exclusively on the inspection and design of marine infrastructure,

Offshore Operators Can Simplify Safety Equipment Logistics

Safety equipment manufacturer VIKING Life-Saving Equipment said its Offshore Safety Agreements are providing relief for offshore operators seeking to ensure compliance

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

That’s Not Coming on Board!

There’s hardly anything that can’t be shipped in a container. However, for ethical reasons, Hapag-Lloyd refuses to transport certain goods.   Anyone who regularly transports goods for third parties,

US Navy Awards $22mln Waterfront Inspection Deal

The U.S. Navy has awarded a five-year, $22 million contract to Appledore Marine Engineering, a specialist focusing exclusively on the inspection and design of marine infrastructure,

Historic Steamship Towed to Buffalo for Restoration

A 113-year-old “Boblo Boat” SS Columbia is being towed from Toledo, Ohio to Buffalo, N.Y., where the historic vessel will be docked for the next year for restoration.

Vessels

Historic Steamship Towed to Buffalo for Restoration

A 113-year-old “Boblo Boat” SS Columbia is being towed from Toledo, Ohio to Buffalo, N.Y., where the historic vessel will be docked for the next year for restoration.

New Cutter Suction Dredge: Modern and Efficient

Ellicott Dredges, LLC has debuted a new design 20” (500 mm) cutter suction dredge, the Series 2070 Dragon dredge.    Aiming to take advantage of modern, up-to-date

Boat with 40 African Migrants Arrives on Spanish Island

A boat containing around 40 African migrants including a toddler girl landed on a beach on the Spanish island of Gran Canaria, sea rescue services said on Wednesday.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Navigation Pipelines 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: 0.1623 sec (6 req/sec)