Monjasa Expects "Limited" Impact From OW Bankruptcy

Monjasa said that the industry would have no long-term problems absorbing the rise in demand left from OW Bunker's exit. 

OW Bunker's demise will have a "very limited commercial effect" on Denmark's Monjasa A/S, the company has said in a written statement.

The supplier said that it had a "limited" financial exposure that was fully insured, while its relationships with other entities in the industry, including banks, suppliers, clients, and insurance companies, were "strong and unchanged." 

Though the company acknowledged that a great number of companies and employees have been affected, Monjasa also said that it believed that in the long-term, the global bunker industry would have no problems absorbing the rise in demand left behind with the exit of the failed fuel supplier. 

Nevertheless, Monjasa said that it, along with the entire bunkering industry, was "sad" to learn of the "unexpected" bankruptcy of OW Bunker.

A Corner Stone in the Industry

"To us, OW Bunker has appeared as a corner stone in the industry. A large company in terms of operating experience and volume - and always a tough competitor on bunker markets across the globe," said Monjasa.

"OW Bunker was surrounded by respect and the company was both a visionary and a strong family led business from the 1980s until the change of ownership in 2007.

"OW Bunker leaves an empty space in the market and among colleagues in the industry."

Monjasa also acknowledged that the industry was now rife with rumours over the company's demise, but that it "will not be taking part in the ongoing speculations regarding the events."

"Instead, we keep focus on developing our own business," it said.

The bunker company also gave its take on media reports that the collapse has caused a tightening of credit in Singapore, leading to a massive spike in demand elsewhere.

"At Monjasa, we have experienced a slight increase in number of inquiries and orders, and noted a marginally higher interest in our vacant job positions around the globe."

Denmark-based OW Bunker announced earlier this month that it had been hit with an alleged $125 million fraud at its Singapore-based subsidiary, Dynamic Oil Trading, along with an additional risk management-related loss of $150 million.

Two days later, the company filed for bankruptcy in Denmark, with its U.S. units following shortly afterwards. 

Two of the company's Singaporean subsidiaries have also since filed for liquidation, with some traders in Singapore claiming that the company's demise has left the city-state's bunkering market in "complete chaos" - a situation that has been disputed by others.