FEATURE: Bunker Industry Adjusts to New Working Practices Amid Virus Disruption

Working from home has caused a few problems for the bunker industry. File Image / Pixabay

While bunker sellers and port authorities have been keen to point out that marine fuels supply carries on as normal despite the COVID-19 pandemic, some teething problems have begun to emerge with the new mode of operation.

WIth many in the industry already accustomed to working remotely it has largely adapted quickly to the need to have most of its staff now working away from the office, but several industry sources have reported to Ship & Bunker some issues with the new regime.

"We will have to accept that payments will not flow as easily as they might have done otherwise," one credit manager said last week.

"With some customers approvals for payment are needed from several people -- signed approval at some companies -- and if they are not in the office, there will be delays."

The source added that this may be used as an excuse in some cases by companies wanting to pay later than required.

Those involved with physical bunkering operations are also experiencing changes to their working practices, such as the need to keep bunkering and ship crew distanced.

This also affects bunker surveyors, who report some ports are restricting their access to both bunkering and receiving vessels, limiting their ability to oversee and verify operations. 

Physical Paperwork

Another bunker industry representative said problems with physical paperwork are more likely to be found with smaller companies, as the larger, more sophisticated ones tend to use electronic sign-offs.

"It's going to be the smaller ones that have the old-school accounting policies," the source said.

The sudden shift to remote working may in fact accelerate the trend towards digitalisation in the bunker industry, as new working practices are required to keep businesses running as normal throughout the current period of disruption.

Indeed, some players have been indicating that all bunkering documents including BDRs must now be digital.

Another credit manager said remote working may affect some credit processes for the bunker industry, with some firms seeking information about their counterparties in letterheaded documents from their banks.

Receiving this information in the correct format may be a problem in some cases, the source said.

But in general the transition to remote working across the bunker industry has been a success, under trying circumstances, with most companies shifting into this mode of operation without significant disruption.

So Far, So Good?

IBIA confirmed as much last week, with a note on its website labelling the current era "business, just not as usual."

"Thankfully, as more and more countries impose lockdowns preventing many of us from going to our offices, modern technology facilitates working remotely, and we're quickly adapting to it," IBIA Director Unni Einemo wrote in the note.

"To keep shipping moving, industry participants are adapting procedures for managing various aspects remotely."

On the buying side, shipowners have also by and large managed to cope with the new set-up, a bunker purchaser told Ship & Bunker last week.

"In some way, we are all managing -- being a bit elastic where possible," the bunker purchaser said.