World News
Hapag-Lloyd Seeks Longer Bunker Credit Terms in Response to Coronavirus
Container line Hapag-Lloyd is seeking longer payment terms where possible from its bunker suppliers as a means of controlling its liquidity during the COVID-19 pandemic.
Container shipping has been heavily affected by the economic shock from the crisis, with a large slice of global capacity left idle last month.
"Our immediate response to this crisis is to reduce costs and also to watch our liquidity," Jan Christensen, senior director for purchasing and supply at Hapag-Lloyd, said in a webinar hosted by BLUE Insight last week.
"Right now in a negotiation with a bunker supplier it is very attractive for us to get extended payment terms.
"It's not all suppliers that are able to offer extended credit terms, which we also understand.
"It's also some suppliers offering extended credit but at riduculous numbers where it has no interest for us -- but we also do see some suppliers being supportive and offering reasonable credit terms.
"I do see an increased interest from the suppliers to discuss the financial standing of the company and discuss credit with us more openly than when you're just in a normal market situation."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 556.50 | 9.00 | 685.00 | 6.50 |
| Rotterdam | 506.00 | 6.00 | 665.00 | 11.00 |
| Houston | 552.50 | 0.50 | 682.00 | 4.00 |
| Fujairah | 548.00 | 7.50 | 750.00 | 3.00 |
| Global 20 Ports Average | 583.50 | 4.00 | 762.50 | 2.50 |
| Global 4 Ports Average | 546.50 | 4.50 | 697.50 | 2.50 |
| Global Average Bunker Price | 632.50 | 2.00 | 811.00 | 1.50 |
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