World News
Consolidation Coming to Bunker, Shipping Industries
The bunker and shipping industries are headed for consolidation, Jean-Hervé Jenn, CEO of marine IT solutions company Inatech Ltd. told Platts at the Singapore International Banking Conference (SIBCON).
Particularly in the bunkering industry, where volume is a key consideration, Jenn said, small companies need to consider whether they would do better as part of a larger organisation.
"Being acquired would be a logical conclusion," he said.
Jenn said some companies will survive the current down market by finding a specialised niche, and others are simply big enough to survive.
"The companies with the capital will pull through," he said
"In the bunkering market, if smaller players cannot afford to carry on, the best solution may very well be to get out completely or diversify to become profitable, by offering an adjacent product other than bunker fuel."
Large companies now make up less than 20 of the thousands in the global bunkering market, Jenn said, and the shipping market has a similar structure.
Inatech recently announced a new product to help small shipping and fuel companies optimise the way they buy and sell fuel, and Jenn said that is a strategy that can help smaller bunkering companies survive.
"They would definitely need to evolve from being flat-price punters to more sophisticated trading strategies in order to maximize their profit margins," he said.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 7.00 | 617.00 | 6.00 |
| Rotterdam | 455.00 | 8.00 | 619.50 | 4.00 |
| Houston | 467.00 | 4.50 | 625.00 | 2.50 |
| Fujairah | 495.00 | 6.00 | 712.50 | 1.50 |
| Global 20 Ports Average | 524.50 | 4.50 | 710.50 | 4.00 |
| Global 4 Ports Average | 479.50 | 6.50 | 643.50 | 3.50 |
| Global Average Bunker Price | 570.50 | 2.00 | 747.50 | 5.50 |
Popular Now More
-
Apr 30The new hire was previously director of marine fuel marketing at UET Marine in Houston. -
Apr 29The ships are accused of delivering cargo to ports under the control of Yemen's Houthi movement. -
Apr 28Failing to keep track of energy density variations could be costing shipping companies as much as $25/mt in fuel bills, Shipergy CEO Daniel Rose tells Ship & Bunker.