Bunker industry can meet challenges - General Manager of Total Marine Fuels
The international bunker industry is sufficiently strong to withstand the serious challenges it faces within the shipping industry and from environmental regulations, according to David Bleasdale, General Manager of Total Marine Fuels.
Speaking at the Fujairah Bunkering and Fuel Oil Forum in the UAE, Bleasdale said: “The bunker industry is strong, and has responded well to the numerous challenges it has faced in the past twelve months. The core bunker market is dedicated to supplying the shipping industry with high-quality product and first-class service, and is prepared to make the necessary investment to continue doing that.”
“Last year may have been something of an annus horribilis for some sectors of the bunker industry, particularly in ARA, typified by supply, quality and pricing issues. In 2006, there was an unprecedented level of volatility in product spreads, arbitrages and exchange rates, and in the flat price of oil. Added to that, in Europe the industry has had to grapple with shipping’s need to comply with the Marpol Annex VI requirements covering emissions control for the Baltic Sea SECA (Sulphur Emission Control Area), the European Directive on low-sulphur bunker fuels for passenger vessels, and the planning of the English Channel and North Sea SECA later this year.”
“Yet bunker companies continue to announce new products and services and neither has there been any shortage of investment in new storage capacity and in bigger, better and safer barges, for example. Clearly, people believe in the future of the bunker industry, and they have every reason to do so.”
“The next five years are likely to be even more challenging for the bunker industry. Within that time frame, we are unlikely to see MARPOL offering market players one single solution. The need for more grades of differing qualities of fuel due to local and international environmental regulations will lead to an increase in the need for tankage capacity, and additional working capital will be required to fund the greater number of components which will have to be held in stock. Add to that the advent of ever larger vessels, ever bigger bunker tanks, and ever bigger barges, and you have some idea of the challenges which lie ahead.”
Speaking at the Fujairah Bunkering and Fuel Oil Forum in the UAE, Bleasdale said: “The bunker industry is strong, and has responded well to the numerous challenges it has faced in the past twelve months. The core bunker market is dedicated to supplying the shipping industry with high-quality product and first-class service, and is prepared to make the necessary investment to continue doing that.”
“Last year may have been something of an annus horribilis for some sectors of the bunker industry, particularly in ARA, typified by supply, quality and pricing issues. In 2006, there was an unprecedented level of volatility in product spreads, arbitrages and exchange rates, and in the flat price of oil. Added to that, in Europe the industry has had to grapple with shipping’s need to comply with the Marpol Annex VI requirements covering emissions control for the Baltic Sea SECA (Sulphur Emission Control Area), the European Directive on low-sulphur bunker fuels for passenger vessels, and the planning of the English Channel and North Sea SECA later this year.”
“Yet bunker companies continue to announce new products and services and neither has there been any shortage of investment in new storage capacity and in bigger, better and safer barges, for example. Clearly, people believe in the future of the bunker industry, and they have every reason to do so.”
“The next five years are likely to be even more challenging for the bunker industry. Within that time frame, we are unlikely to see MARPOL offering market players one single solution. The need for more grades of differing qualities of fuel due to local and international environmental regulations will lead to an increase in the need for tankage capacity, and additional working capital will be required to fund the greater number of components which will have to be held in stock. Add to that the advent of ever larger vessels, ever bigger bunker tanks, and ever bigger barges, and you have some idea of the challenges which lie ahead.”