Bunker One USA Sets Out Cost-Cutting Measures Amid Tight Margins

The firm has observed tightened margins and volumes in its markets for the past few years. File Image / Pixabay

US physical supplier Bunker One USA has set out how it has reduced costs and increased efficiency in an increasingly pressured market.

The firm has observed tightened margins and volumes in its markets for the past few years, it said in a statement on its website this week.

Measures in response have included releasing long-term tug and barge charters.

"We stay ahead by combining strong data discipline, operational flexibility, and customer-focused decision-making," the company said.

The firm's statement sets out the following measures it has implemented:

• Disciplined Monitoring: We track all movements in volume and margins through structured record keeping and performance analysis, giving us early insight into market trends.
• Proactive Planning: Our strategic pivots anticipate market deterioration rather than react to it, allowing us to adjust operations before pressures intensify.
• Asset Optimization: We reduced tug and barge costs by releasing long-term charters and using spot tugs efficiently.
• Fleet Consolidation: Partnering with Kirby has streamlined scheduling and improved barge utilization.
• Smart Market Retrenchment: In New Orleans and Mobile, we exited chartered tug/barge operations while maintaining storage tanks to preserve flexibility with lower fixed costs.
• Greater Efficiency: Our new offshore tanker improves connection times, documentation flow, and pumping rates - reducing total turnaround time.
• Enhanced Reliability & Control: An updated commercial management structure gives us tighter scheduling control and flexibility to operate safely even in challenging conditions.
• Strategic Capacity Shifts: We increased HSFO intake as demand has outpaced VLSFO, ensuring product availability aligned with market needs.
• Maintaining Scale: By growing total offshore volumes, we've helped offset declining premiums and preserved operational scale.
• Strengthening Core Relationships: We prioritize long-term partners with dependable service and competitive pricing, creating stability in volatile markets.
• Accelerated Lead Pursuit: Our team moves faster to identify and convert new opportunities, ensuring no viable lead is missed.
• Optimized Procurement & Hedging: Refined strategies ensure our cost base stays competitive even during softer demand cycles.

"These actions keep us reliable, agile, and resilient," the company said.

"When market conditions improve, we are well-positioned to scale and capture growth quickly."

To read the firm's statement in full, click here.