Dynamic Oil Trading Urges Greater Due Digilence
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.”