4th Issue

Facts about Shipping and Bunkering Business

Facts about Shipping and Bunkering Business

Report 2014

Although shipping is an essential an element of transportation, there are some big challenges within the bunkering business:

  • 33% Newsulphur regulations
  • 26% locating reliable suppliers
  • 18% Post infrastructure
  • 11% Fuel testing

 

Even though the new sulphur regulation is due to start on January 2015, the impact of the new sulphur regulations on companies is considered by shipping operators:

  • 52% Significant impact
  • 26% Not strongly affected
  • 11% Little impact

LNG is better for the environment, yet challenges of using it still prevail:

  • 52% Problems with LNG logistics
  • 41% Lack of infrastructure for LNG importation
  • 26% Supply of LNG
  • 15% Demand difficulties

 

Testing is crucial to ensure fuel quality, and some of the best methods to do that are:

  • 60% Analytical expertise
  • 37% Cutting edge technology
  • 19% Analytical tools

While reviewing terms and conditions is vital for the success of the business, the frequency of the practice does not reflect that:

  • 52% Once a year
  • 22% When some clauses are missing
  • 15% Other
  • 11% Every two years
  • 4% Never

Detectingmarket shifts can be a deal breaker in the bunkering business. The best methods used by companies to stay on track include:

  • 70% Detailed analysis by trusted sources
  • 30% Feel of the market based on experience
  • 11% Word of mouth

 

Because risk mitigation have a strong impact, companies are practicing different methods to ensure their safety:

  • 52% Accurately assessing energy prices
  • 44% Risk management strategies
  • 30% Fixed price agreements

Due to the current market shifts, the majority of bunkering professionals had a high level of awareness about insurance policies:

  • 70% Have sufficient knowledge
  • 30% Require more information

 

However, the level of satisfaction with current insurers fluctuated:

  • 33% Satisfied and don’t intend to change
  • 33% Satisfied but open to new options
  • 11% Not satisfied but not looking for new options
  • 4% Actively looking for new options

 

With this lack of satisfaction about insurers, companies adopted their own methods of preparation for various risks:

  • Risk assessment & management
  • Market analysis
  • Monitoring industry developments

Read more:

Red Sea Bunkering Conference

 

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