The Importance of Experience and the Changing Dynamics of the Bunker Market

Paul Hardy, NSI

I was speaking with my colleague Kevin the other day and we were reminiscing about the time when he entered the market. We were discussing what we had lost and what we had gained as technology/the market has changed.

He recounted of the time when there were no mobiles but telex machines where messages were produced on ticker tape. Then came mobile phones which, required suitcases just to carry the batteries. There was no on-line address book/internal databases. Instead people relied on mental speed dialling of those people they spoke to everyday. Following that came the bunker directory a copy of which everyone carried.

Nowadays, people are contactable via various apps which has streamlined the communication process and made more efficient. When Kevin entered the market suppliers, brokers and traders socialised alongside each other. It was a fun and vibrant industry to work in. Relationships were more personal rather than via on-line chats. As a company we are still very active in meeting all sectors of the market and is one thing we will always continue to do.

In terms of enquiries they too were also different. Ten thousand mt stems were regular and with a more opaque market prices could improve depending upon what sort of lunch a supplier had!

Of course nowadays with more efficient ships and greater scrutiny of sales and purchase the stems are smaller and the lunches less frequent. The key difference has been the transparency of pricing due to the reporting agencies. This has allowed greater auditing and benchmarking of performance and is one of the key jobs we do for our clients.

Where we have lost ground over time is our overall understanding of the market. There was no specialisation in that time and as Kevin told me 'we had the depth of knowledge and understanding to work with both clients and suppliers to resolve the issue'.

As traders have become more prominent in the market we have seen a 'dumbing down' of understanding of the intricacies of the supply chain. The focus for many companies has been primarily if not exclusively profit. Many junior traders are hired on small wages with promises of big bonuses but without the training of experienced staff to nurture the talent. At NSI we have a very focussed training programme conducted by senior staff. The idea is to give the junior person time to develop and learn the job properly whilst controlling the risk they are exposed to. We avoid the revolving door hiring policy of some of the trading houses.

As Kevin stated 'we all have to start somewhere and to hire someone with no experience and expect them to hit the floor running when they need support and training seems ridiculous'. Too often though we see this in our market. It is short sighted as can't enhance the companies profile with the wider market.

As a company our key asset is experience. We have the experience to build understanding and confidence in new staff and impart that knowledge with our clients. We have moved with the time and adopt cutting edge technology for areas like benchmarking and audit trail. What is different about us though is we are not a quiet floor. There is still a buzz with phones ringing, lunch appointments being made, deals being cut and all the old school skills being utilised.

As Kevin says 'we have moved on but nothing beats experience'.

About Kevin Hughes

Kevin started his career in agency before moving to ship brokers Gibsons and Clarksons where he was a Divisional Director. He then moved to physical supplier Falmouth oil. He was Director of International Sales at LQM for 14 years before joining NSI 4 years ago.

Kevin Hughes can be reached atkevin@nauticalsupply.co.uk