Tighter Access to Bunker Credit is 'Good Thing': Delta Energy
Credit is getting harder to come by. File Image / Pixabay
The tightening of access to bunker credit seen over the past two years could be seen as a good thing because it is delivering greater scrutiny of the industry, according to marine fuel supplier Delta Energy.
Chris Morgan, global head of credit at Delta, made the point at price reporting agency S&P Global Platts's European Bunker Fuel Virtual Conference on Thursday.
"I think it's clear to everybody that [credit] is an order of magnitude more difficult to come by now than it was 24 months ago," Morgan said.
"I actually think that's a good thing.
"I don't think the banks historically have got the best record of pumping a lot of money into bunker companies -- they don't necessarily fully understand the business and the counterparty that they're funding.
"Now obviously there's a lot more scrutiny ... I feel this is something we as an industry should welcome; at the end of the day, you have to aspire to do things the right way.
"Historically, bunkering hasn't always done that in every case."
Access to credit is becoming more difficult partly as a result of rising oil prices that mean more credit is needed to cover the same amount of fuel, and also because of banks becoming increasingly wary of commodity trade finance after a range of fraud cases in recent years.