Global Director of GAC Bunker Fuels Nicholas Browne says traders must be sure that their clients can and will pay up.
The bunker trade has become more complicated in recent years, according to Nicholas Browne, Global Director of GAC Bunker Fuels, and that "balancing the numbers" is key to a successful bunker fuel trading operation.
Commenting in an emailed news release on Monday ahead of speaking at the Lloyds Maritime Academy Bunker Management School, Browne said getting prompt payment for delivered supplies has always been challenging, but is made all the more difficult in the current financial climate of volatile prices, strict emission controls, and geographical spread.
Traders must therefore be sure that their clients can and will pay up if they want to secure their own financial stability and, ultimately, survival.
Nicholas Browne, Global Director of GAC Bunker Fuels
Delayed payments, extended credit lines and defaults can put an end to serenity even of the biggest market players
"On average, bunker costs represent about 70% of a vessel's purchasing expenses and as rising prices mean tighter margins, the only way to grow business is to make the money you have work for you," he said.
"Delayed payments, extended credit lines and defaults can put an end to serenity even of the biggest market players."
"Traders need to think smart when selecting their suppliers, and be aware of the warning signs to watch out for before offering a credit. Cash – and its healthy flow – is king," Browne added.
Browne will join other trade experts sharing their expertise and experience at the Bunker Management School in London on November 11-13, 2013.