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Wednesday, June 20, 2018

MORE THAN $90 MILLION COULD BE LOST IN BUNKER SHORT DELIVERIES

According to INTERTANKO’s "WHITE LIST", the leading consumer report on quantity risk from bunker suppliers, more than one in five (over 20%) of all bunker deliveries were significantly short on quantity during 1996.

Latest available figures reveal that, "grey margins" - the actual quantity difference between what is ordered by a shipping company and what is delivered by the supplier - totalled $78 million in 1996. If bunker prices remain at current levels of about $125 per tonne, this figure could reach $90 million in 1997.

Mikal Bøe from CBC Marine Publications, the London based company which produces the "WHITE LIST" says: "It is actually equivalent to a loss of around 50c on every single ton of bunkers bought. The losses are staggering, and it’s hard to see how some of the suppliers get away with it. Shipowners should look into this, because there are massive savings to be made here."

Ports which this month stand out because of their higher-than-normal quantity risk, are: Abidjan, Amsterdam, Bremerhaven, Fujairah, Gibralter, Hong Kong, China, Houston, Istanbul, Jeddah, Mombassa, Philadelphia, Rotterdam, San Francisco and Singapore.

"One way in which shipowners can virtually eliminate short deliveries is simply to deal only with the suppliers in these ports which have a track record of not short delivering their customers", explains Bøe. "It’s cheap, it’s not difficult and it saved the readers of INTERTANKO’s WHITE LIST and estimated $13 million on bunkers in 1996."

Some current examples of possible bunker savings for shipping companies on a 1000 tonne bunker stem at $125 per ton, FOB:

Rotterdam: $3,200
Houston: $4,500
Singapore: $7,050
Hong Kong, China: $5,200
Panama Canal: $2,800
Fujairah: $2,850
Suez Canal: $2,500
Jeddah: $6,600

(Examples are taken from INTERTANKO’s "WHITE LIST" no 82, January 1997)

For more information contact:
Capt. Robert Bishop, INTERTANKO
Tel: +47 22 12 26 40, Fax: + 47 22 12 26 41

Mikal Bøe, CBC Marine Publications
Tel: +44 181 994 6477, Fax: +44 181 995 2566