4th Issue

Facts about Shipping and Bunkering Business

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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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