World News
Dan-Bunkering: Tragedy of OW Bunker Collapse Has Created Negative Consequences for the Entire Bunker Industry
Henrik Zederkof, CEO at Dan-Bunkering says last year's downfall of longtime bunker market competitor, OW Bunker, has cast an air of reluctance and hesitation upon the entire market, Maritime Professional reports.
"Some may think that one less significant player in the market would only benefit companies like ours, but the OW case has certainly also induced negative consequences in the entire bunker business," explained Zederkof.
"Banks, suppliers and clients have all become more hesitant and in general we have seen more circumspection in the market in the form of suspended credit lines and weaker credit terms."
While Zederkof also admits that there has been many benefits for Dan-Bunkering and his fellow competitors as a result of OW Bunker's demise, he still refers to the company's bankruptcy as nothing short of a "tragedy".
"What happened to OW last year was certainly the biggest tragedy we have seen in the bunker business," said Zederkof.
"We refer to it as a tragedy as it was sad to see a long-standing, solid competitor go down like this, however, of course the OW bankruptcy has given Dan-Bunkering some benefits in the form of less competition, new clients, contracts and employees,"
Since OW Bunker's bankruptcy, Dan-Bunkering group has reportedly employed over 20 former OW employees and opened new offices in Aalborg, Valparaiso, and Montevideo, all staffed with a large number of those former OW Bunker employees.
On Friday, PricewaterhouseCoopers announced that OW Bunker has reached a deal with its liquidators, receivers, and security agent ING Bank N.V. on the assets of its subsidiary, OW Bunker Middle East DMCC.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 596.50 | 0.50 | 688.00 | 1.00 |
| Rotterdam | 523.00 | 2.50 | 677.00 | 1.00 |
| Houston | 550.50 | 0.00 | 676.50 | 8.00 |
| Fujairah | 582.00 | 2.50 | 758.50 | 5.50 |
| Global 20 Ports Average | 599.50 | 0.50 | 757.50 | 2.00 |
| Global 4 Ports Average | 563.00 | 1.50 | 700.00 | 4.00 |
| Global Average Bunker Price | 644.50 | 1.50 | 813.50 | 0.50 |
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