Asia/Pacific News
Singapore Commodities Player Enters the Bunker Market
Despite what it described as "difficult" market conditions due to record low oil prices, slowing global demand, and economic uncertainty, Singapore-based sugar and rice commodities trading firm Wee Tiong (S) Pte Ltd (Wee Tiong) Friday in an emailed press release said it was "betting against odds and in a big way" by entering into the bunker trading market.
Tan Wee Beng, a director at the company, said it made "perfect sense" for a homegrown Singapore company to now enter the market, adding that they have been very interested in the marine fuels industry for a long time.
"As experienced traders, the low oil prices and high market volatility, always present the best opportunities to trade," he added, noting that the company's decision to base the bunker trading business out of Singapore is supported by the port city's position as the world's biggest bunkering port.
The company says that Colin Wong has been brought in to fulfill the role of CEO of the company's bunker trading division.
Singaporean Wong most recently headed, and owned, United Asia Bunkering & Trading (UABT), which entered into the Hong Kong physical bunker supply market in October of 2015.
Commenting on the change of direction, Wong said: "The Marine Fuels industry is changing as we speak, in these new times, customers will only deal with trading houses or physical suppliers who are financially strong and stable.
"[Wee Tiong] currently has, in excess of, USD 80 million of credit lines with various banks in Singapore, and due to their outstanding financial track record, they can easily increase that by another 30% if needed. This is the type of partners that will lead the industry moving forward."
On the physical side, in February, Ship & Bunker reported that Singapore was back up to 60 suppliers following the addition of Harley Marine Asia Pte Ltd (Harley Marine Asia) to the Maritime and Port Authority of Singapore's (MPA's) list of accredited bunker suppliers.
