Cockett Sees 2020 as "Great Opportunity" to Extend Growing Market Share

Cem Saral, CEO for the Cockett Group, says 2020 presents a "great opportunity" to benefit from a growing market share. Image Credit: Cockett Group

As bunker players consider likely market changes coming in 2020, Cem Saral, CEO for the Cockett Group (Cockett), has told Ship & Bunker that the group sees the nearing global 0.50 percent cap on sulfur in marine fuel as a "great opportunity" to benefit from a growing market share.

"Our in-house view remains unchanged: we project the supply solution to be a combination of distillates and new distillate-based products in the initial phase of the IMO2020 transition," explained Saral.

"As the new compliant fuel(s) are expected to be priced closer to distillate products than to fuel oil, we project a significant increase in relative marine fuel prices. This will result in market players requiring increased working capital, with a commensurate increase in counterparty and credit risk."

Saral says that the company's asset-light business model will give Cockett the ability to adapt to new demand quickly and economically in the context of 2020's tighter emission regulations, and with it an expected shift in demand away from HFO to more expensive, compliant low-sulfur fuels.

"Cockett Group's strong balance sheet, shareholder support and long-standing relationships with its key working partners will assist greatly in responding our customers' needs," he added.

As Ship & Bunker previously reported, in an effort to meet "present and future needs," Cockett recently expanded its Greek office through a relocation.

"Cockett Group's Greece branch has commenced operations in July 2014 with an aim to further strengthen our relationships with the Greek shipping and marine fuel community," said Saral.

"Our direct presence in the country has had a positive impact on our trade volumes, resulting in our original team of four growing to eight, including a marine lubricants specialist. The recent office relocation is a response to this growth and allows room for expansion."

Saral notes that Cockett currently has global operations across 15 countries, with an annual trade volume of over 7 million metric tonnes.

"In addition to its recently launched global lubricants platform, the Group also continues to expand its operations into various petroleum products and services as part of its business growth strategy," said Saral.