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Home ShipmanagementBunkering Prime’s Bunkersplus News Highlights – December 2020

Prime’s Bunkersplus News Highlights – December 2020

by admin
Irene K. Notias

Prime’s Bunkersplus News Highlights – December 2020

From our office to yours,   Καλό μήνα!               Tues, Dec 1, 2020   

Dear Valued Client: Bunker Buyer, Principle, Charterer, Operator

Our monthly newsletter is meant to keep you accurately informed, so you can make on target decisions.

End of year message and Magic Ball for 2021:      

Be mindful.

The Greek Shipping Industry is a unique and valuable community.  Fact is, we are sought after by many international maritime service companies, to do business with them.

All the Bunker and Shipping Industry seminars and webinars in 2019 and 2020, point to the direction of consolidation, as a solution for sustainability. Especially for small and mid-size conservative companies.  

We are playing with new rules.  

As a Greek-American bunker broker company, situated in Greece, since 2002 with expert fuel agents servicing your accounts and a proven vetted bunker fuels supply network, we see that in this year, 2020, our clients have persevered with resilience but are still exposed to conditions of minimized to depleted bunker fuel credit lines. 

There are also, many case studies, in the last decade alone, to contrast with the now, and learn not to repeat same mistakes. Just this year, we have learned that we (customers and suppliers) are all in the same boat! Susceptible to the pandemic virus world-wide and its domino effects, in every aspect of our lives.

It is survival of the fittest time, maybe more than ever. So, knowing we are in this together, we must help one another, to sustain our companies.

Your credibility and credit worthiness is of utmost importance to your company’s sustainability – you know this already. Did you know it is of utmost importance to the vendors too? 
There has been an ever increasing “know your customer” (KYC) campaign from every nook and cranny, that has left no one out. Even the majors with their large customers require this information before they offer bunker prices.  

For example, a major oil company, an independent supplier and a trading firm, require same KYC and bank document requirements to evaluate an account that buys marine fuel for its vessel (s).

Why are we playing with new rules?  Because the banks will not – can not offer loans to companies that are not insuring their accounts and insurance companies will not insure accounts that have a late or poor payment performance.
How do they know? Data. Private, yet available data of payment reputation researched by the Credit and business analysis companies. 
Regretfully, if you take a look, you will notice that once many Greek trading companies in early 2000’s, now are almost none. The trading companies that are helping fuel your vessels are international and have consolidated in last 6 years (after OW Bunker fall and domino effect) offering much stricter terms. 

So, be mindful of this. We need the best of vendors credit lines and must create “Credit Memo’s” as per Paul Millar’s statements (towards the end) of our Posidonia 2020 Webinar: https://www.slide2open.net/en/shippingfinance2021/prime-s-bunkersplus-posidonia-2020-webinar/

Our magic ball tells us the following for year 2021 :

+ The new compliant fuel sulfur content will be verified, delivered and sampled within a universal standard and Singapore delivery procedures will be adopted in main hub ports.

+ Shipping companies will consolidate and select fewer better suppliers to deal with as vendors have been doing in 2020. 

+ Be careful, cheap will be expensive.

+ Whoever pays on time will survive. The credit companies, the suppliers and banks who were advising in past years that shipping companies that do not enjoy a healthy cash flow will be left out of credit, and have to pay cash, will mean it, in 2021. 

+ Since it is a very private and sensitive matter, Prime’s will take special care to assist in the way it knows how – professionally and diligently. 

Prime’s offers intelligent solutions. 

The people at Prime’s are the right group to help your company develop an improved payment performance reputation in 2021!  

Let’s take it one step further.  Join Prime’s growing bunker pool in Singapore now. Contact us today, to learn how.  

IMPT INFO from IBIA’s latest article: 
“IBIA delivers message to MEPC 75 about sulphur verification issues”

International Bunker Industry Association took part in the 75th session of the IMO’s Marine Environment Protection Committee and shared some observations regarding the draft amendments to Appendix VI on Verification procedures for a MARPOL Annex VI fuel oil sample.
Please see below some key points and read in full in: https://ibia.net/2020/11/20/ibia-urges-imo-member-governments-to-apply-amendments-to-marpol-sulphur-verification-procedures/

– Statistically sound test precision principles that are reflected in the amendment to appendix VI under the Verification Procedure Part 2 for in-use and onboard samples which IBIA supports wholeheartedly but they remain concerned that the same principles are not recognized for the MARPOL delivered sample.
– Different approaches to sulphur verification for MARPOL delivered samples versus in-use and on board samples cause unintended confusion and conflict. This has created problems and uncertainty, including demands to debunker fuels which have not been proven as non-compliant by the appropriate verification procedures stipulated under MARPOL Annex VI. Debunkering bears substantial financial & environmental costs and represents safety and environmental risks.
– IMO guidelines for consistent implementation of the 0.50% sulphur limit, and the revision of appendix VI of MARPOL Annex VI, make it absolutely clear that the 95% confidence principle for test precision should be applied to in-use and on board samples and Member Governments are to apply approved amendments to MARPOL Annex VI related to the verification procedure for a MARPOL Annex VI fuel oil sample in advance of their entry into force.
– Expectations on suppliers: no fuel should be put on the market if it has tested above the limit even by a fraction prior to delivery, and the blend target to meet the 0.50% sulphur limit during production should be no more than 0.47%, in line with best practice guidance.
– Having two different procedures for sulphur verification under appendix VI of MARPOL Annex VI will inevitably cause confusion in how the regulation is understood and applied. “The signals are confusing, but as far as the ship is concerned, a yellow signal means “keep going”.”
– If an authority decides to test the MARPOL delivered sample and the fuel tests above 0.50% sulphur and as such has not met the requirement, it should nevertheless be considered as having met the requirement for the ship to use, or carry for use, unless the test result exceeds 0.53% sulphur.

BUNKER PORT PRICE DIFFERENTIAL LIST : (basis indics, Dec 1st)

PORT                VLSFO max L/S 0.50% RMG380 DIFFERENTIALMGO max L/S .10% DIFFERENTIAL 
SINGAPORE$381.00$307.0074$393.00-12
FUJAIRAH$390.00s.i. $466.00-76
ROTTERDAM    $360.00$295.0065$400.00-40

Find compliance info and daily ports bunker price indications at www.primeinc.gr, or Join BPi www.bunkerspot.com/bpi, for much more ports price info and analysis.

Prime’s is one of the oldest, independent bunker buying management service providers, situated in Greece and supported by the best Greek shipping companies around. It is a facility that provides accurate information, quality fuel products, supplier credit lines and peace of mind to bunker buying procurement departments. 

Backing clients’ needs holistically, we educate our clients about the bunker industry dynamics and how to help make intelligent buying decisions that achieve cost savings.

Join our family of clients in our IMO2020 VLSFO BLOG. LinkedIn page: https://www.linkedin.com/company/prime-s-bunkersplus-services/.  Share and pool ideas for the sake of sustainability. 

Meet Prime’s team @  http://primeinc.gr/#people

During this pandemic period, we want to know you are okay, so pls send a return reply email, stating: “staying healthy”. 

We are standby for your bunker fuel and lubs procurement needs, making your work life easier, so you can optimize on efficiency. 

Thank you for your confidence. We remain, 

at your service,

Irene Notias
Prime’s Bunkersplus Services

Your Bunker Buying Management Service Provider 
(as brokers only) 
Tel:  +30-210-963-9140,  Fax: +30-210-963-9153, 24 hrs cell: +30 6932-35-0044 
E-mail for inquiries: inquiries@primeinc.gr
E-mail for VLSFO 0.5 issues: bunkersplus@primeinc.gr  
Website: http:// www.primeinc.gr

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