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
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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
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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
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