Home HRCommunication Prime’s Bunkersplus News Highlights – April 2021

Prime’s Bunkersplus News Highlights – April 2021

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Prime’s Bunkersplus News Highlights – April 2021


   Thurs, Apr 1, 2021        
Attn: Bunker Buyer, Principle, Charterer, Operator ,Accountant, Lawyer, P&I and Classification Reps  
                                    From our office to yours, ΚΑΛΟ ΜΗΝΑ!                                        
This monthly newsletter is intended to bring accurate info that helps stakeholders in the decision-making concerning marine fuels procurement. 
“Banking on Bunkers: financing the bunker deal in times of market uncertainty” at Slide2Open’s Shipping Finance 2021

A panel discussion, held on Mar 18th, that offered important insights from the bunker (fuels) industry about sustaining credit lines going forward and hence the sustainability of the Shipping Industry. Hosted at Slide2Open, it was organized and co-moderated by Ms. Irene Notias and Mr. Llewellyn Bankes-Hughes, Managing Director of Petrospot Group.
 
Ms. Irene Notias began with a brief presentation showing the complexity of the bunker inquiry dynamic and how finance and credit drive the fuel supply value chain all the way to approval of bunker credit lines for shipowners and operators. The panel’s theme was to show the domino effect and forewarn buyers that credit insurance companies and banks are observing and determining which shipping companies will get future bunker credit basis current payment performances which is determined by empirical data and algorithms.
As prices move upward and money gets tighter there are concerns about credit availability and issues of transparency. Meanwhile, future crude oil movements are always uncertain.

Mr. Llewellyn Bankes-Hughes pointed out: “Bunkering can be a very simple but also very complicated business. The key is transparency and cooperation between the suppliers and the buyers. The more trust that each party has in the other, the more streamlined and successful the bunkering transaction will be. And the greater understanding each party has of the constraints of the other, the better it will be for everyone. My advice is this: know your counterparty, be as transparent as possible, and always pay on time.

Mr. Sifis Vardinoyannis, Business Development Director at SEKAVIN Bunkering Stations, representing the bunker supply side of the industry, commented that key to financing a supplier’s business is transparency and being open on how they operate while engaging with customers that are open to transparency and can provide the necessary credit information. 

Mr. Stamatis Xochakis, the buyer at Tsakos Energy Navigation, representing the buyer’s perspective mentioned the difficulties they face with their credit applications, the large amount of information they are obligated to give out to suppliers (KYC, audited financials, etc) while also watching out for suppliers’ reputations and quality of products.
Representing the bunker trading and credit sector was ex-Dynamar credit analyst, Mr. Kieran Michael Brown, now Group Credit Manager at Island Oil (Holdings) Ltd emphasized consistency and communication being key: “if you are asking for 45 or 60 days….its not so much about the terms as it is about communication. If you have a client that can only pay on 45 days because that’s the way the business is set up, that’s fine, as long as they consistently pay on 45 days. Sometimes their cash flow is unpredictable, as long as the client is telling us what their business is….we can understand…and try to make it work. It’s really about communication.”

Last but not least, representing the trade credit and insurance side of the industry was Mr. Makis Tzeis, Managing Director of the Greek branch of Atradius who said: “There are no companies, which are “above any suspicion” anymore. As a consequence, clarity of financial data is of an utmost importance as without these financing and insurance have become harder to be provided. Credit Insurance is a powerful tool to prevent insolvencies, secure your liquidity and acquire access to cheaper finance – working capital.”

Upon watching your feedback is welcome at: bunkersplus@primeinc.gr To learn more, click on below link to watch our
discussion at 3:24:51 

IMPORTANT ARTICLES & INFO:
Bunkerspot: Playing the waiting game
Read more in: https://www.bunkerspot.com/global/52851-ship-energy-playing-the-waiting-game

Ms Unni Einemo, IBIA’s Director, said the following at IPE week IBIA Virtual Networking Dinner Video Feb 22, 2021:
“Shipping is the engine of global trade and the bunker industry fuels that engine. Shipping keeps the world’s population supplied with food, energy and other vital goods This makes us part of an essential industry. The bunker industry has proven its resilience and ability to adapt in the face of both known challenges like IMO 2020, and unknown challenges like the coronavirus pandemic. This resilience and innovation will serve us well on the road toward zero emissions, which will be challenging.“ https://www.youtube.com/watch?v=jw-yBRxmJ6Y

IBIA: VLSFO – FACT VS FICTION
VLSFO has been in use for over a year, largely without incident. So why the continued vilification?… Read more…

IBIA: CARB introducing carbon residue testing to enforce distillate requirement
Ships operating in Californian waters may soon be subjected to extra testing on in-use fuel samples to ensure they are using only distillate fuels. California Air Resources Board (CARB) has confirmed to IBIA that it will test fuels to see if they have no more than 0.30% carbon residue to check if the fuel in use is a distillate. Read more…
 BUNKER PORT PRICE DIFFERENTIAL LIST : (basis indics, Apr 1st)       
PORT                VLSFO 0.50%  RMG380  DIFFERENTIAL MGO 0.10% DIFFERENTIAL        
SINGAPORE $485.00 $378.00        107 $515.00       -30       
FUJAIRAH $470.00 $395.00        75 $616.00       -147       
ROTTERDAM  $450.00    s.i.    -$495.00        -45 
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.
  
Bunker Broker = Unbiased + Transparent + Specialized service

Prime’s is one of the longest running, independent bunker buying management service providers, acting as brokers only, situated in Greece and supported by the best Greek shipping companies and international bunker suppliers around. Its facility provides accurate information, quality fuel products, supplier credit lines, cost effective prices and peace of mind to bunker buyers. 
 
“INTELLIGENT BUNKER BUYING SOLUTIONS”
 Backing clients’ needs holistically, making your work life easier, so you can run your vessels. Educating clients about the bunker industry dynamics and how to make intelligent buying strategies and decisions is our specialty.
 
 Small to medium size ship owning companies with little volume have lots to gain by entrusting Prime’s to help drive their buying strategies with respect to know-how and execution. Plan your Bunker buying policy and strategy with unbiased independent brokers now. Prime’s Bunkersplus Agents are happy to serve you and go the extra mile. We thank you for the business, the confidence you have shown us and remain, 

at your service,

Prime’s Bunkersplus Services
(as brokers only) 
Meet Prime’s team @  http://primeinc.gr/#people
Tel:  +30-210-963-9140,  Fax: +30-210-963-9153, 24 hrs cell: +30 6944-382533
E-mail for bunker and lub inquiries: inquiries@primeinc.gr 
E-mail for general comments: bunkersplus@primeinc.gr  

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