High bunker price volatility can erase TC earnings

High bunker price volatility can erase TC earnings

Earlier, we wrote how ship owners and operators can lose millions by not considering all their bunker options. Here we show that even if all options are considered, high price volatility between bunker ports means the choice needs to be continuously scrutinised to avoid large P&L losses.

Bunker prices fluctuate with the oil markets but even after stripping out the effects of crude, prices between ports are still extremely volatile. As a result, the cheapest bunker port on the same voyage can change every 3 days, meaning shipowners can suffer big P&L losses by not constantly re-evaluating all options right until they have to fix.

“Put simply, in the time […] Read more

Bunker Price Secrets (Part One)

Bunker Price Secrets (Part One)

“Bunkering is without a doubt the most opaque market there is. At least when a fixture is done in shipping, the detail gets reported out there pretty quickly — sometimes before even the charterer and the owner know. But in this market, no one knows the ‘fixture’ of bunkers. The only way you even know two data points in the same port is if you have two ships loading in that particular port with two different suppliers”.

– Nicolas Busch, founder and CEO of Navig8/Integr8

This is the first of a 3-part series where we explore techniques and concepts when establishing the […] Read more

Shipowners losing millions by choosing the wrong bunker port

Shipowners losing millions by choosing the wrong bunker port

Bunkers are one of the largest costs associated with a
voyage, so making the right decisions around it are crucial. Although many shipping
companies have dedicated bunker teams, the decision of where to bunker tends to
start with the chartering manager during their initial voyage estimation.

Before a vessel becomes open, chartering managers begin to assess
multiple voyage options. This typically happens well in advance as an
unemployed ship equals unrecoverable earnings (time is a perishable good). For an
accurate voyage estimate, chartering managers need to collect information on both
the vessel and ports specific to the voyage.

Vessel parameters are often similar for each voyage: max.
cargo capacity, bunkers […] Read more

6 Ways for Shippers to Reduce Bunker Costs

6 Ways for Shippers to Reduce Bunker Costs

It’s no secret – shipping is going through a tough time. And in tough times, owners and operators need to do everything they can to help the bottom line. The industry has been rife with consolidations, bankruptcies, acquisitions and downsizing. But what else can shipowners and charterers do to become more profitable?

The cost of bunker fuel is an easy place to start. Fuel accounts for a whopping 60-80% of the cost of a voyage. So what are the ways an owner can reduce these costs?

 

1. Slow Steaming

This is an obvious one. Drag on a ship reduces “quadratically” with the speed, […] Read more

BunkerEx doubles supplier coverage, achieves lowest bunker price 90% of the time.

BunkerEx doubles supplier coverage, achieves lowest bunker price 90% of the time.

BunkerEx, the online marketplace for bunker purchases, has vetted and added over 50 new suppliers in the past month, doubling it’s global port coverage in the process.

 

“We now have over 200 bunker suppliers and traders registered across 700 ports, all reachable on our site at the click of a button” Hemnani, founder of BunkerEx said. “It allows bunker buyers to scan and see firm offers from a huge portion of the market faster than any other traditional method. As a result of such a large supplier network, the data shows we achieve a better price for our clients on 9 […] Read more

Introducing Credit for Bunker Buyers

Introducing Credit for Bunker Buyers

We’re pleased to announce the launch of a new, dedicated service for setting up credit lines for bunker buyers with our trusted and verified suppliers*. This can be found at bunker-ex.com/credit.

 

The service utilises our database of information to determine:

Which documents are needed to set up credit (as all suppliers are different, and some need more documents than others).
How many potential credit lines a buyer should have for good, competitive coverage.
If a company is not keen on giving out their financials, we have an algorithm that determines the maximum supplier coverage they can achieve from a minimum amount of credit lines.

For […] Read more

BunkerEx: Balancing Humans and Technology

BunkerEx: Balancing Humans and Technology

Every morning at the BunkerEx headquarters, our entire team gets together to brainstorm innovative ways for technology to make bunker buying faster and cheaper for our clients. But bunkering is an art as well as a science, often relying on human knowledge and care to deal with complex issues before, during and after each delivery. Each stem requires huge amounts of operational attention, so buyers want someone experienced to represent them – something machines aren’t very good at.

So how do we balance the power and speed of technology with the care and experience of our brokers?

 

Enhancing Brokers

We strongly believe in […] Read more