Bomin says it has zero exposure to collapsed container shipping giant Hanjin
Thanks to its diligent approach to credit management, Bomin has zero exposure to collapsed container shipping giant Hanjin, and the bunker company is set to continue its careful and responsible stance in the market, Captain Joe Zhou, Bomin's Hong Kong-based Regional Credit Manager has told Ship & Bunker.
"The market right now is so competitive, and the margins are low, so if you suffer from a bad debt this will inevitably have an impact, particularly on the smaller players without the financial strength. So I think it's right for us to remain diligent and responsible in our approach, as it is more sustainable."
Captain Joe Zhou, Hong Kong-based Regional Credit Manager, Bomin
we don't just assess buyers, it is also important to assess suppliers as well
On a brighter note, Zhou says that despite the chronically poor market conditions, there have been fewer bankruptcies than expected. However, the danger is not just limited to buyers, but also to the smaller bunker supplier counter-parties that Bomin deals with.
"Bunker suppliers too, if they have exposure to high-risk customers and they don't get paid, they could easily go. So we don't just assess buyers, it is also important to assess suppliers as well with the same checks and balances and appropriate due diligence," said Zhou.
"There will potentially be more consolidation within the market, particularly amongst smaller companies without the global scale or financial strength. The extent of this we will have to wait and see."