The role of traders in the bunkering industry remains central despite increased awareness of counterparty risk since the 2014 bankruptcy of bunker trading company OW Bunker, shipowners said.
"It is possible to bypass the trader, but not practical," Anders Borella, senior bunker manager at shipowner Norden told the audience at the 2016 Singapore International Bunkering Conference.
The safest way to avoid double payment is to buy direct from suppliers. But flow cash flow means shipowners find it difficult to secure credit. Often shipowners and operators need bunker credit for longer than the standard 14 to 30 days, and traders provide them with longer terms, acting as a lender.
Borella and Jens Maul Jorgensen, director of bunkering at Oldendorff Carriers, as well as Martin Brodersen, head of bunkers at Torm, said that they are doing business with fewer traders, but continue to rely on their credit lines. Shipping companies along with bunker suppliers are now seeking out less leveraged traders and inquiring about traders' finances prior to doing business.
