Asia/Pacific News
Aegean to Exit Singapore Bunker Market as a Physical Supplier
Aegean Marine Petroleum Network Inc. [NYSE: ANW] (Aegean) today announced it will exit the Singapore bunker market as a physical supplier as of January 2018.
"The bunkering market in general, and the Singapore market in particular, are extremely competitive. We had hoped that enforcement of mandatory mass flow meter (MFM)-equipped bunker barging in January would have driven commercial improvement in the Singapore market allowing Aegean to compete profitably. However, 2017 has seen heightened commercial pressures in Singapore, and as a result, management has determined that Aegean's resources can be more profitably deployed elsewhere," said Aegean President Jonathan Mcilroy.
"We will continue to employ a team of traders and support staff who will actively support our valuable clients in this market. This office will support our broad base of Asian customers across both our global physical supply network as well as handling back-to-back bunker trading and our lubricants business in Singapore and South-East Asia.
"We have an extensive customer base in Asia and we are committed to supporting the valued clients of our business."
Aegean says it is now in the process of arranging its withdrawal from the Singapore physical supply market in conjunction with the Maritime and Port Authority of Singapore (MPA) and its barging and cargo partners in the market.
Mcilroy stressed that all deliveries and contracts booked with clients' vessels, cargo providers, and barge contractors will be fulfilled.
For 2016 Aegean ranked as Singapore's 20th biggest supplier by volume.
The move follows Aegean's widely publicised efforts to reduce its global operating expenses by $20 million, which as Ship & Bunker reported earlier this year included reducing its headcount in Singapore by 15.
But Aegean says it will also continue to develop new physical supply locations, and in June announced the launch of a new service center in Savannah, Georgia.
Mcilroy says the company are set to debut in a number of new markets over the course of 2018.
