The bunker industry may struggle to access sufficient credit next year. File Image / Pixabay
The bunker industry should be wary of a potential credit squeeze next year in the event of a fast recovery, according to marine fuel supplier Glander International Bunkering.
Supply of credit to the bunker industry has shrunk by an estimated 8-10% in 2020 with banks withdrawing somewhat from commodity trade finance, Carsten Ladekjaer, CEO of Glander International Bunkering, said at Petrospot's ARACON conference on Wednesday.
The combination of bunker consumption falling and oil prices dropping has kept the industry's demand for credit below supply this year, but that may not continue in 2021, Ladekjaer said.
"Going forward, if demand picks up and if prices pick up post-COVID-19, the supply would also have to keep up," he said.
"But if supply does not keep up fast enough, we might actually see demand for credit and liquidity outpace the supply, and then we have an overflow."