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Bunker Industry experts confront the challenges of VLSFO 0.50% at Posidonia 2020
Bunker industry personnel being so busy preparing for IMO2020 were a missing link from most Shipping Forums organized in the last 3 to 4 years in Greece that were anticipating the new low sulphur compliant fuel entry. This year, on October 30th, POSIDONIA 2020 offered the opportunity to fill part of that gap, with its “It’s time to Talk” web series – first ever online events. Gathered together were bunker industry specialists to offer knowledge about the current issues prevailing about the new fuel compliant product VLSFO 0.50% and bunker credit lines; thus, ensuring that all stakeholders be provided with accurate information that would be useful to bunker fuel procurement decision-making moving forward.
The highly reputable group was organized by long-time bunker fuels brokerage firm Prime’s Bunkersplus. It was part and parcel of its biannual seminar series “Bunkers Today” entitled “Bunker Industry experts confront the challenges of VLSFO 0.50% — dispersing facts, unveiling myths and safeguarding ethics” and acted as a prelude to Slide2Open’s Shipping Forum coming up on January 26-28, 2021.
Referring to the changes imposed by IMO2020 and Covid-19, moderator, Prime’s managing director/Sr. Bunker fuels broker Irene Notias said “I think it’s prime time we (brokers, shipowners, suppliers) enforce a trust between the suppliers and the buyers. We are all in the IMO2020 and COVID-19 pandemic together and we must cooperate…we have to have knowledge to cooperate.”
The bunker fuel webinar kicked off with a famous Abbot & Costello skit “Who’s on First” to contrast the mildly comical confusion in the shipping industry about “who” is the authority (IMO or States) on the new compliant fuel “game” and “what” is the standard for this new fuel. As serious as these issues may be, Prime’s webinar organizers thought of adding this touch to lighten the viewer’s stress level with comedy besides knowledge.
Well-known bunker industry experts presented facts and tips regarding the handling of the new fuel VLSFO 0.50% and how to make a credit memo that would help the end user sustain bunker credit lines.
Paul Millar, Credit Director, Bunker Credit Management Ltd. And Bomin Bunker Oil talked about Credit Manager’s Paranoia and how things have changed for bunker credit managers, ever since IMO2020 and COVID-19 pandemic. He went on to tell that buyers can help themselves; “Ease the paranoia by creating a credit memo to provide to the credit agencies and sustain your bunker financing.”
Well known, Marine Engineer, Consultant Fuel Specialist, Chris Fisher, at Brookes Bell LLP spoke about IMO2020 compliant fuel, quality claims and offered a tip that “if you’re a buyer, look for the good supplier and some easing on the general terms and conditions.”
Evidently owners are not the only ones who experience risk. Suppliers are experiencing the same woes because the new fuel product’s origins and blend are at the root of the problems and that is not in their control.
ARA physical supplier, Christian Kint, CEO, Oilchart International, explains: “We are very aware that we have a big responsibility and put all our efforts…but the fuel they buy is not tested by the refinery. One of the reasons for the quality claims in ARA is the blends and at origin there is no sampling allowance.”
Referring to bunkering suppliers in Turkey, Mustafa Muhtaroğlu, CEO, Energy Petrol Shipping Trade commented why they have least if no claims: “We work with authorities especially customs…all refineries and oil terminals are installed with mass flow meters and customs seals barge tanks… all products are tested and improved by customs…we have no off spec … no quality claims… We are a very good example for working together under the chamber of maritime.”
Covering Panama, Nicolas Vukelja Duque, CEO, Terramar Oil & Services shared that bunkering in Panama is very strict and that “Implementing Singapore delivery methods…the local authorities needs to authorize their implementation in the bunker market…and that all VLSFO 0.5% bunker claims were handled case by case.”
Barging Licenses & Practices in Piraeus Port was the subject of Hellenic Short Sea Ship Owners Association board member, and Operations Manager at Ganmar Shipping, Alexandra Gana, who among stating that Piraeus port has a strict bunker licensing scheme like the one of Singapore, believes that “over-regulation is not a solution. We need to (foster) implementation, knowledge and trust.”
Completing the briefing with a distinct message by Nigel Draffin, Bunkering issues Consultant, and Board Member & Honorary Treasurer of IBIA that the “first thing…the most effective way to bunker a ship is when the receiver and deliverer understand their responsibilities…respect for your counterparties part of the mix…all parties are properly trained and that means education.” Hence, for best results make use of ethical business practices and standards.
Powered and hosted by Slide2Open’s portal, it was a first for the bunker buying management service provider Prime’s Bunkersplus to organize a digital event and was very pleased with the 180 live viewers turnout.
Prime’s thanks its co-sponsors, The Hellenic Short Sea Shipowners Association and Ganmar Shipping.
