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Wednesday, September 19, 2018

INTERTANKO members purchase more than one third of the world's bunker fuels

In the course of 1997, INTERTANKO's membership is set to purchase more than 35% of the world's stock of marine bunker fuels. With a total represented fleet of over 1750 ships, including many of the largest vessels in the world, members' exposure in the bunker markets are enormous. With members' total spend of nearly $7 billion, INTERTANKO is increasingly active in protecting members' interests when buying bunker fuels.

Dagfinn Lunde, the Managing Director of INTERTANKO says: "With the enormous exposure that our members have in the fuel market, we are in a perfect position to exercise pressure on suppliers to perform." There are a large number of bunker suppliers which have a track record of short deliveries and delivering poor quality fuels. Lunde adds: "With the ISM Code heading our way, our members are looking very carefully at their relationships with bunker suppliers. After all, if a tanker is rendered unseaworthy because of either too little bunkers or poor quality bunkers, we may have a serious situation on our hands."

INTERTANKO is set to take an increasingly active role in protecting their members' interests in the bunker market through such initiatives as the "White List". Det norske Veritas Petroleum Services (DnVPS) is in negotiation to contribute data to the monthly White List, joining Lloyd's Register FOBAS and ABS Oil Testing.

Mr. Lunde says: "We welcome this development. As an organisation which represents members spending such huge sums on bunkers - all such contributions count. Our members did after all save over $13 million on bunkers in 1996 because of the White List."

Some demonstrated savings from using the White List in April 1997:

on a 1000 metric tonne bunker stem at $110 per ton, FOB:

Rotterdam $2,900
Houston $3,210
Singapore $6,680
Hong Kong, China $4,610
Panama Canal $2,110
Fujairah $2,220
Suez Canal $2,980
Jeddah $3,870

(Examples are taken from INTERTANKO's "WHITE LIST" no 85, April 1997.)

For more information contact:
Capt. Robert M. Bishop
tel: +47 2212 26 40
fax: +47 2212 26 41
Direct Line: +47 22 12 26 70

Mikal Bøe
tel: +44 181 994 6477
fax: +44 181 995 2566