Buyers Should Take on Digital Platforms to Reduce Bunker Costs: AuctionConnect

by Ship & Bunker News Team
Tuesday October 8, 2024

Bunker buyers seeking to reduce their costs should take on digital marine fuel services, according to AuctionConnect.

The cost reductions that online platforms can deliver will become increasingly important as shipping firms shift into buying more expensive alternative fuels, AuctionConnect said in an emailed statement on Monday.

"Most procurement departments purchase marine fuels via brokers, traders or direct with suppliers," the company said in the statement.

"However, there is also the opportunity to utilise bunkering procurement technologies, available today and free-to-use, that simplify the complexities of traditional price negotiation, increase transparency and reduce the cost of procurement by always ensuring that fuel buyers get the best possible price.

"Platforms like AuctionConnect enable buyers to invite multiple fuel suppliers to bid against each other in reverse auctions and drive bunker fuel prices down below Platts' rates.

"Buyers can make substantial savings on each tonne of fuel they purchase, depending on the circumstances in the market and the specific bunkering port."

Based on 1.3 million mt of bunker deals across an 18-month period, AuctionConnect estimates its service delivers bunker prices on average $7/mt lower than Platts benchmark prices.

Ship & Bunker News Team
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