Inatech, a unit of Glencore that specialises in energy trading risk management systems, has built the ‘Smart Trader’ app to enable companies to map their entire fleet of ships and visualise best routes given sea and port conditions to achieve lowest prices for the desired quality of fuel, the company said in its release. The toolkit leverages bunker alerts and pricing data from S&P Global Platts, the leading independent provider of information and benchmark prices for the energy and commodities markets. Torm, the tanker company that’s one of the world’s biggest carriers of refined oil products, worked with Inatech on the app’s design and is among the first clients.
The major international shipping companies are investing in technology ahead of the implementation of the International Maritime Organisation’s rules to limit sulphur emissions to 0.5%, from the current ceiling of 3.5%, which come into effect from January 2020. S&P Global Platts Analytics estimates that complying with the IMO’s cap will add $60 billion to fuel costs in 2020.
With an expected jump in bunker fuel price volatility, Smart Trader enables companies to track their vessels on an integrated system that manages fuel levels on board and updates with live prices and news for supply en route. The interactive platform not only displays which ships in the fleet are running low on fuel but whether their fuel type is compatible with availability and optimal pricing in the direction of travel and, if it’s not, what would be the most optimal rerouting. Potential suppliers are checked for quality and credit references to control counterparty risk.The technology moves the bunker buyer from operational to analytical, continually dissecting and analysing quotes as they’re updated from the full suite of international suppliers.
The app is powered by comprehensive S&P Global Platts data spanning refined wholesale and retail marine fuels including all standard ULSFO, LSFO, IFO, MGO and MDO grades at more than 350 ports worldwide, along with regional indices, 28 day spreads, and moving averages. Smart Trader also includes Platts’ new IMO 2020 compliant 0.5% sulphur cargo price assessments for the ports of Rotterdam, US Atlantic Coast, US Gulf Coast, Fujairah and Singapore, along with intraday news and feature articles to round out a full picture of the global bunker markets.
The app builds on Inatech’s Shiptech platform, which in recent years took bunker trading from Excel spreadsheets and manual tasks to an automated and comprehensive workflow system spanning vessel loading to invoicing.
Specifically, Smart Trader addresses five key risks in the three-month run up to Jan 1, 2020:
1.Market risk (price volatility)
Integrated vessel tracking to help planning
Live prices and news
Plan for each vessel as well as overall fleet
2.Availability of required fuel type at destination port
System co-ordinates with global suppliers / traders
Organises bunkering with local availability information
Anticipates price and availability trends thoughout voyage
3.Ensuring quality control on the array of new fuels
Manoeuvres through the myriad of new fuels by tracking energy content
Aids purchase decisions based on energy efficiency considerations, not just price
4.Ensuring fuel compatibility with ships’ tanks
Maintains fleet level compatibility
Manages level of fuel on board for planning & awareness
5.How to check counterparty risk (credit)
Exposure and counterparty tracking
Analyse overall supplier performance as market changes
About
Inatech is a leading global provider of intelligent cloud-based energy trading risk management (ETRM) and fuel management software to the physical oil trading and marine industries. Part of Glencore’s oil division, Inatech combines best-of-breed cloud technologies with in-depth industry expertise to enable companies to integrate, automate and optimize business processes, driving efficiency and revenue growth. Inatech’s customers benefit from an international delivery model that provides the competitive edge needed to thrive in today’s dynamic markets.