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SCHIFFFAHRT | SHIPPINGBunkering industry seekssolutions to decarbonisation costs© Hafen Hamburg MarketingHigher costs of alternative fuels could push bunker suppliers to increase customers’credit lines, while propelling industry consolidation. By Patrick LeeMarket practice is for bunker suppliersto offer ship operators creditlines of US-Dollar six- to eight-figures,depending on the volumes purchasedand these customers’ financial strength.Customers are usually given 30 daysfrom the invoice issuance to settle payments.Green methanol being availableonly in limited quantities, are $ 700 to$ 1,600 per ton, while green ammonia isestimated to cost in excess of $ 900.Green hydrogen is priced from $ 4 to $ 6per kilo.Anders Gronborg, CEO of bunkertrader KPI OceanConnect, said at a recentSingapore International BunkeringConference: »New fuels aren’t cheap sowhen switching from conventional fuel togreen fuels, there’ll be a need for more financing,for more credit. If you are asmall (ship) owner with a certain cashflow,there’s a need to… there’ll be a needfor that. The immediate answer is obviously,more credit.«Minerva Bunkering CEO Tyler Baronsaid that the 30-day payment terms arebased on an archaic system linked topaper bunker delivery notes, and shipsbeing fuelled in one port before departingfor another port.Baron said this could change as electronicbunker delivery notes are introduced.Singapore, the world’s largest bunkeringport with 52 mill. t of marine fuelssold in 2023, is making electronic bunkerdelivery notes compulsory from April2025, phasing out paper notes.However, Baron added that while certainship owners are cash-rich and have a lowercost of capital than many bunker suppliers,Minerva, a unit of commodity giant MercuriaEnergy Group, is in an opposite position.He elaborated: »We have a lower costof capital than most of our customers sofrom that perspective, we’re very happy toleverage our balance sheet, our cost offunds, to provide them extended financingif that’s economically attractive.«Peninsula Petroleum’s chief operatingofficer Kenny MacLean added that thedrive towards environmental regulationwill mean that bunker suppliers have tomodernize their bunker barges, many ofwhich are now well over 20 years old. Suchcapital investments, opined MacLean, willspur consolidation among suppliers.Minerva Bunkering CEOTyler Baron© Lee30 HANSA – International Maritime Journal 12 | 2024
