Technology driven bunker broker OilFront has today announced its launch. The company, which already has several clients across the globe, combines innovative software with deep industry experience. It is headed by Danny Soos (ex BP) and 35 year industry veteran Neil Lamerton (Gulf Petrochem and KPI Bridge Oil).
The company, which is already building a worldwide client base, is focussed on empowering small and medium-sized companies who have been shut out of the best deals in the bunker market because they can’t afford a dedicated bunker buying team. OilFront believes its solution will save the average target company at least $3 / MT.
There are 3 ways that Oilfront is saving money for its clients.
1) Better planning
OilFront works with the shipping company to decide when and where to take bunkers. Our market map makes it easy to work out the most economic bunkering port, which may not be the load or discharge port. The opportunity cost of taking fuel at the wrong port can be US$20+ / MT.
2) Transparent negotiation
OilFront gives companies access to expert buyers, who work the enquiry in the market. Where possible – we work directly with supplier and can help open credit lines. All quotes are shown in realtime as they are negotiated. Expert buyers can typically save US $2-5 / MT and reduce the incidence of claims when compared to operators who buy bunkers infrequently.
3) Aggregate demand
Large shipping companies can achieve discounts of up to US$9 per MT below Platts – bigger buyers get better service and prices. OilFront’s technology allows it to aggregate orders and to give the shipping companies it works with more buying power. It is also a win for suppliers who spend less time fielding unsuccessful enquiries.
Richard Hext, Former CEO of Pacific Basin Shipping Ltd., MD of Swires’s China Navigation Company Ltd. and now Chairman of Vanmar Shipping Ltd. commented “The opportunity cost of not carefully checking the market for the best overall deal for bunkers is very considerable. Bunkers are already the highest discretionary cost item faced by shipowners and operators and bunker costs will soon soar following the introduction of new IMO rules. OilFront’s combination of technology with deep industry experience is somewhat unique, enabling shipping companies to navigate the hitherto very opaque bunker market to save a lot of money. OilFront recently saved a client US$9 MT on their bunker bill by redirecting their ship to a cheaper port and by enabling access to credit. ”
Danny Soos CEO of OilFront says “OilFront enables small and medium sized companies to gain access to the best deals. There are no upfront fees for our technology and our commission is pre-agreed with clients. If our data-driven approach was adopted industry wide it could save at least US$4Bn a year. ”
“The best way to understand what value we can create for your company is to give us a trial.”
Source: OilFront