Cash Rich Companies Have Clear Advantage in Singapore Following OW Bunker Exit

by Ship & Bunker News Team
Tuesday December 2, 2014

In the wake of OW Bunker's recent bankruptcy, cash-rich companies in Singapore have had the clear advantage when it comes to grabbing market share, reports Reuters.

Analysts say major oil companies such as Royal Dutch Shell plc and BP plc, who have integrated supply systems, are expected to benefit, along with companies with liquidity or large fleets of vessels.

OW Bunker's downfall has caused a credit crunch in the city state, with local players reporting that they have had their credit cut by suppliers who themselves are experiencing a tighter cash flow.

However marine fuel premiums over cargo prices continue to be high as worried buyers attempt to ensure supplies.

“OW Bunker would have traded and delivered up to 300,000 tonnes of fuel each month, and that (shortfall) has been lifted," said one Singaporean-based fuel trader.

"Your bigger players would have gained, but by how much, that is hard to tell.”

It was speculated that World Fuel Services, Sentek Marine and Trading, Transocean Oil, and Searights Maritime are all among the companies who have filled the space OW Bunker once occupied.

Sentek and Transocean also reportedly confirmed a rise in sales, though did not say by how much.

Citing the uncertain climate, Singaporean barging companies have reportedly been demanding payment upfront or on delivery in an attempt to avoid companies who have been too affected by OW Bunker.