Newly formed bunker broker BUNKEREX is utilising its technology platform to save buyers both time and money.
As things stand today, bunker buyers are often left in the dark on the agreements between their broker/trader and the supplier. This lack of transparency can lead to owners and charterers unknowingly paying margins and hidden fees of an average $5.00/mt.
“We are looking to change this at a crucial time for the shipping industry” says BunkerEx co-founder and CEO, Ishaan Hemnani, who has a decade of industry experience. “Currently, owners and charterers can’t be certain that their broker has: 1) Covered the whole market; 2) Negotiated the price down as much as possible, and 3) Been completely objective and unbiased in choosing the supplier. Additionally, there is absolutely no transparency on a broker’s final fee, as many will actually try and sell higher to earn bigger commissions. It’s the bunker buyer that ultimately pays the cost for all this.”
To solve this, BunkerEx has built a trading platform that allows buyers to generate an enquiry, cover the whole market and negotiate aggressively in just a few clicks, significantly improving efficiency.
“We don’t just claim to be more transparent, we actually show our clients everything that goes on. The beauty is that our technology allows buyers to place a stem quickly and with less hassle, saving an average of 40 minutes per enquiry. At the same time, our brokers continue to offer a world-class and personalised service. It gives ship owners and charterers all the benefits of having a bunker broker, without having to pay the price.”
Despite the current challenging environment, trader margins are still approximately $5.00/mt. Taking into consideration the 400 million tonnes of fuel purchased per year, these middle-men gain significant revenues at the expense of owners, charterers and physical suppliers. BunkerEx takes just $1.00/mt, and is the only broker in the market where the buyer can fully trust and be 100% certain on the commissions they are paying.
In addition, BunkerEx is selective on the suppliers it works with. “We don’t just let anyone in. Our suppliers are hand-picked based on reputation and then continually monitored on their trading activity, competitiveness and frequency of claims.”
“Ultimately we are more of a broker than a software company, putting human interaction at the heart of everything we do. Most of the processes have one of our experienced brokers behind them who are available 24/7. We understand that it’s important to provide regular broking services as well, especially when deliveries get complicated. We just use technology to ensure our clients get the best deal possible.”
BunkerEx is completely free for buyers, meaning it costs them nothing to use the platform and compare prices. A small fee is only taken from the supplier when the delivery is completed.
Additionally, clients of BunkerEx receive free, personalised reports on their data including information such as their average discount vs Platts, preferred suppliers and their most common ports. Suppliers also receive information such as who their best customers are, accurate feedback on lost deals and the amount of credit they’ve extended to each client.
“Most traditional service industries are going completely digital. We don’t believe the bunker industry is fully ready for that, so have built a hybrid between the two: traditional human brokers with a technology platform to make the process fairer, faster and cheaper.”
Source: BunkerEx