Friday, September 13, 2013

Bunker industry is shipping's new banker

Shipowners needing to reposition their ships for better charter opportunities or  move from their existing trading area or even take the vessel to dry-dock are faced to contemplate  a large  fuel bill that the vessels cash flow cannot support- this places constraints on what would be rational decisions and overall must make for a sub optimal freight solutions- that fuel bill itself is a great inhibitor to moving tonnage from an area of surplus to an area of deficit-  Lloyds List

Quoting   Lloyds List article

Shipping needs financial assistance The bunker trading industry and traditional finance could work together

Hal Brown - Thursday 12 September 2013

THE bunker trading industry has in effect become the new banker for the shipping industry, according to a leading bunker industry expert.

This is because access to credit from the bunker industry to secure expensive fuel is vital for shipowners struggling to pay the bills in the current poor shipping market.

According to the International Bunker Industry Association’s immediate past chairman Nigel Draffin, the role of the bunker industry as shipping’s financial lifeline should be noted by traditional financial institutions, which have distanced themselves from shipping in recent years, due to the poor market.

The bunker trading industry and traditional finance could work together on helping shipping.

 

 

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