Americas News
OW Bunker: Credit Key to Competing
Adrian Tolson, regional manager of OW Bunker's North American physical division, says that while price is important, their ability to offer credit solutions to shipowners, along with fuel quality and service, are the keys to success as a supplier in the current market.
"Owners need credit so as a supplier you have to be in a position to provide credit," Tolson said in an article on the company's website.
"We are somewhat more selective in choosing clients these days because some aren't as strong as they once were, but we do offer credit to credit worthy counterparties."
Tolson said some companies operating in the market are struggling to keep enough capital reserves to sell fuel on credit, and that is likely to contribute to consolidation.
"Financing and the cost of counterparty analysis has become more and more difficult, credit cannot be done on the back of an envelope anymore, so there is no question consolidation will continue," he said.
OW Bunker, which is part of the Wrist Group, hired Tolson last fall to help it start up physical operations in North America.
The Danish company added a second supply vessel for its operations in the Gulf of Mexico starting this month.
Tolson said the new vessel will help it compete against companies like Chemoil and BP, and he plans to hire more employees in the near future as he "expects the fight for market share to continue."
