EMEA News
OCM Continuing to Expand in UK Bunker and Lubricant Markets
OceanConnect Marine is continuing to expand its physical bunker and lubricant operations in the UK, OceanConnect Marine's Chief Operating Officer, Ethan Ram, has told Ship & Bunker.
"We have been running a barge on the Thames for eight years where we have a very healthy share of the 1,000ppm gas oil market servicing customers on a contract and spot basis, and offer customary credit terms and post-fixture support. The dedicated barge is flow-meter-equipped, and we also supply ex-RTW," said Ram.
"We are very proud of our record of more than 6,000 deliveries without incident and serving as an agent to Conoco Phillips in the UK for six years. We have supply contracts in place with all the major refiners."
The comments follow confirmation by Cockett Marine Oil last week that its UK physical bunker supply operations will be suspended effective June 30, 2016.
Ram declined to comment on recent market chatter over the exit, but instead pointed to OCM's current and future plans.
"We will certainly continue to supply at the Thames Cruise terminal at Greenwich, and at anchorage positions near Southend and Gravesend. Though vessels incur a calling cost when taking bunkers on the Thames, our integrated supply chain enables us to offer competitive pricing," he said.
"We recently expanded into marine lubricants globally and this service is now being offered to clients in the UK at competitive rates so owners continue to get premium service on both bunkers and lubricants."
"But I want to emphasize that by no means is our business limited to Thames deliveries. Since 2013 we have an active business delivering LSGO 0.1% 10ppm, Kerosene, and Diesel to ports all over the UK via RTW and using our BDN. We supply from our leased storage tanks from Conoco. And as a Conoco agent we work closely with them for sourcing reliable RTW fleet."
Asked why OCM does not supply HFO in the UK, Ram pointed to the larger and more efficient nearby bunker hubs such as Rotterdam, which along with the number of local players made such a proposition "uncompelling."
"The majors, BP, Shell, Mobil all tried it and despite their significant infrastructure and resources could not make it work. Of course, this challenging market was made more challenging by the implementation of the [Sulfur Emissions Control Area (SECA)]," he said.
Instead, Ram says OCM's core physical business in the UK is based on 1,000 ppm product.
"Customers tell us they prefer 1,000 ppm because of its higher BTU content, higher density (the customer gets more product per tonne), lower sulfur, and because it is an organic product, unlike 10ppm, it does not require additional lubricant to use," he said.
"Nevertheless, I should emphasize that we can also supply 10ppm which we deliver via our own barge or RTW. Our land storage tanks are capable of storing and handling 10 ppm product."
