OW Bunker Looking for Quick Sale of Stranded Bunkers

by Ship & Bunker News Team
Thursday November 20, 2014

OW Bunker is looking to quickly offload more than 27,000 metric tons (mt) of oil currently being stored at a terminal in California, Businessweek reports

The company's North American unit said in a filing that it is looking for up to $13.5 million for the fuel, at $350 to $500 per metric tonne (pmt).

A quick sale was said to be necessary as the company hopes to avoid over $300,000 in storage fees per month as well as mitigate against fluctuating oil price

The fuel, which is of various grades, is being stored at the Royal Vopak NV Terminal in Los Angeles and in vessels offshore. 

Denmark-based OW Bunker, who was one of the largest fuel suppliers in the world and had an estimated 7 percent market share in the global marine fuel and logistics business, announced earlier this month that there had been an alleged $125 million fraud at its Singaporean subsidiary. 

A further risk management-related loss also cost the company another $150 million, with OW filing for bankruptcy in both Denmark and in the U.S. just days later.