EMEA News
Bunker Market: Counterparty Risk Moves Centre Stage
Settled timescales for quotes and payment days have become yesterday's luxury as bunker traders revert to case-by-case risk assessment before making a call, according to market sources.
A ten-day quoting window would be the maximum available to buyers with many Europe-based bunker traders more comfortable offering far tighter terms.
"[In the current climate] I would not take an order four days in advance, especially if it was a B2B deal," one trader told Ship & Bunker.
Heightened uncertainty over supply will mean that regular clients can expect preferential treatment when it comes to securing fuel.
"Supply is very short," an ARA trader said although the trader added that spot deals were still on the table.
But with the usual terms of business in the bunker market turned on their head, players are moving towards assessing counterparties "related to risk".
"It's too soon to talk about a general shift in the market," a trader commented.
