IMO2020: We'll Only Sell Bunkers to First-Rate, Prompt-Paying Customers, Says Bomin

by Ship & Bunker News Team
Friday April 5, 2019

With the increased financial pressure of IMO2020 looming, Bomin says it has decided to only sell bunkers to "first-rate" customers.

"You don't need a crystal ball to realize that the introduction of low sulfur regulations in 2020 brings both challenges and unique opportunities. We have long known that the cost of fuel will increase in 2020 and this will impact on both the industry's financing costs, sales volumes and existing credit limits," says Bomin Group Managing Director, Jan Christensen.

"Higher costs for buyers will have a significant impact on their financial performance and unfortunately this will be critical for those who are perhaps already struggling in weak markets or lack access to increased capital. Bomin therefore made a very conscious decision to only sell to first-rate, prompt-paying customers with whom we have complete confidence and are proud to serve them."

While some predict compliant fuel next year could be as much as $400/mt higher than today's HSFO, Bomin's Group Credit Manager, Paul Millar, previously told Ship & Bunker a buyer's IMO2020 compliance strategy has no real impact on credit risk.

Over the last 12 months Bomin has also been responding to the realities of IMO 2020 by scaling back its operations in several markets, moves Christensen has said are the "commercially responsible" thing to do.

Still, this week the supplier has assured its bunker business in the Americas is "full steam ahead."

Ship & Bunker News Team
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