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

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