What happened to the Buyer?
10th January 2013 09:03 GMT

For some time now I have been reading about latest technologies of fuel efficient engines – newly developed paints for the vessel's hull – flow meters for both barge and/or the receiving vessel – improved lubes has also been noted, not to forget retrofit technologies. The list of "new and improved" ways to save monies on the bunker bill seems to be endless. But one vital item seems to be missing in the discussion, namely "The Buyer".

The most important person (from an owner's point of view) as, if he is not the biggest spender in an Owner/Operator’s organisation, he is for sure ranked very near the top.

This brings me to crux of this blog – I am amazed how much an Owner is spending on anything that can/will improve the performance of his vessel, that be a quick turnaround in ports and/or engines and/or safer navigation/communication, but how little he invests in the person buying the fuel(s) needed to move the vessel (apart from pushing the personnel to go for the lower prices, and complain about high bunker prices hurting them on their bottom line).

This is just a fraction of the truth as the bulk of the monies involved in bunkers is not "wasted" on the actual purchase, but on the ensuing events, especially during and after deliveries have taken place.  

As we all know, bunkers is bought in weight but delivered in volume – do I have to explain that a large chunk of monies ends up in the wrong pocket on volume/density and temperature differences? How about the vessel's crew? Any thought given to the fact that they sometimes also like to be part of the "feeding frenzy". All, which at the end of the day comes out of the Buyer's pockets. To use an old phrase, "it needs a crooked mind to catch a crook," and believe you me, they are out the in large numbers.

Over the years, I have been advocating that "knowledge is king" and in order for the person(s) buying bunker fuels for an Owner and Operator, this person must be given the opportunity to gain this information.  So how do they gain this knowledge/experience?  One good way to start is to send him/her to conferences (networking) or seminars where likeminded people meets to discuss common problems and make new contacts and gain knowledge from seasoned speakers.  Too many times have I met Operation Managers / Technical Superintendents on various conferences. When I have asked them "where is the person actually buying the bunkers" the common answer have mostly been "he/she does not have time, too busy operating vessels" !!!!  This is an issue every conference organiser is confronted with; Where are the Buyers? Guess the answer is; home operating vessels.

The cost of sending a buyer to a conference/seminar has also been mentioned as a reason for keeping him/her away. Let's assume a conference (all inclusive) will run to about US$ 10K – with today's prices of 600+ per mt HFO, all it takes is a savings of about 16 mt and he/she has paid for the conference. I venture to say that with the knowledge obtained through networking/shared experiences, that in the course of a year, the savings will be way more than 16 mt.

Another argument often used is "we cannot afford a bunker department".  Again, nonsense. All it takes is to consolidate the purchasing into one person who buys for the whole fleet instead of several buying for only their vessels.  It does not add cost to the company, just makes the purchasing function much more efficient and economical.

I can keep on listing other ideas on how to set it up, suffice to say that an Owner/Operator  should first look at their present setup with the view on how can we make it more efficient and ensure that the person(s) buying fuel has the optimal knowledge in how to source good quality fuel(s) – ensure that what they pay for has actually been delivered and later does not disappear somewhere along the way.

It is not as difficult as it may sound. As the old saying goes; "If there is a will, there is a way".


Ivar Tonnesen,
10th January 2013 09:03 GMT

Comments on this Blog
Marco Antonio Costa Tritto - Petróleo Brasileiro S.A. (Petrobras)
11th January 2013
Very interesting approach, Ivar. Indeed the industry keep talking about those ways to save money but forgets in general the role of the bunker buyer in this goal.
Christakis Piitarides - Ajax Offshore Bunkering Services Ltd
14th January 2013
The buyer should be considered part of the company's money management team. Mastering different pricing stratagies and lines of credit helps the company plan, forecast and manage cash flow. Doing it badly threatens their ability to trade. There are lots of bunkers traders out there that would make good buyers and know the good and bad in the market.
Ivar Tonnesen - IVT Consulting
14th January 2013
Chris
I fully agree that the Buyer should be part of money management team. But I have problems following your line of thinking on the rest of your comment. A bunker buyer buys fuel for a specific purpose, namely to fuel an engine that drives the vessel forward. A bunker trader, or a fuel trader for that matter, has a different objective, which is to generate profit on his trades and he also trades untold volumes every day for that purpose.A bunker buyer may only be in the market once a day or even less, all dependent on the size of the fleet. Finally, there are more to buying bunkers for a specific fleet than just lifting up the telephone. The bunker buyer needs to tackle delivery problems - quality/quantity problems - enure the vessel has received what he pays for etc. Problems a fuel trader dont have to worry about. Although they may handle the same product, all other similarities ends there.

Regards/Ivar
Christakis Piitarides - Ajax Offshore Bunkering Services Ltd
15th January 2013
Noted Ivar, you would need operational experience too. My point was here that the trader understands buying and the position of the seller/supplier. That can only be an advantage in negotiations.
Tamer Marei
16th January 2013
Good ideas. This lead me of thinking that the selection criteria of bunker buyers should include operational experience as a mandate. Also you reference to volume/weight conversions is valuable. One should imagine how 1 degree (temp) could change what you pay !!
Thanks again for the good article.
D. Brad Hurley
25th January 2013
With the ECA coming into enforcement in the U.S. and Canada, it will be critical for Owners to better manage their bunker quality. I can see where people schooled in Environmental Policy will become a valuable tool for Owners not only to stay in compliance, but to minimize the use of higher price low-sulphur fuel.
Caroline Clarke
19th March 2013
Salutations,
Yes to render attendance here too is key with to the extent the carrier is disposed to market forces on qualitative and quantitative noteworthy the lowest bill at the end of the day which bears the bunker costs. This would be the consignee - that to illuminate what of any savings could be had would be from gleaning the service provider driving initiatives in sustainability on the installation as a whole - that there vessel carrying the cargo - what of these efficiencies are identified from the use phase consumption of in the exercise – the consignee’s account direct or indirectly. That a carrier would recognise amplifying attendances on initiatives would leverage a market differentiator - serving it up if you will. To have the consignee's appreciate that they can likewise drive greater efficiencies in their attendances is the conduit leveraging win win for both that the detail here bears significance. Whose inventory your inventory is our inventory and small change can make a big difference Thank you kind regards Caroline
Abdellah Dakkoune - APSCO For Petroleum Services LLC
20th April 2013
Thanks Ivar for this post , you are right ,most of shipping line are investing in fuel efficiency and they completely ignore the role of a bunker purchaser . I have been in that job for last 20 years and I can remember the numbers of conference I have attended and always struggling to get the excecutive approval to register .
Thanks again and hopefully the fleet management can realize the importance of their bunker purchaser and start investing in their own poeple to manage the bunker cost effectively .
Best regards
Abdellah Dakkoune
Mostafa Khayali - Pacific Freight Agences
24th April 2013
Abdellah, you really sumed up the issue.
Ezekiel Quarshie
19th April 2017
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Ezekiel Quarshie
19th April 2017
Attn:Sir/Madam,
We are miners of high quality gold in the sub-region of Accra-Ghana, West Africa. Our gold comes from a natural soil and is rated as one of the best finest in the world .
Currently we have enough stock of gold bar, dust and nuggets for sale and we are capable of supplying on both weekly and monthly basis.
Our price is very affordable, competitive and below international rates, any interested buyer should kindly contact us for more details.

Sincerely,

Mr. Ezekiel Quarshie
Tel/Fax: (233) 205197873
Email: ezekielquarshie@hotmail.com
Skype: business0004
Watssapp: +233553081854
Vladislav Yakov Yakov
12th July 2017
Dear Sir.

I am Vladislav Yakov the Managing Director of NEFTEGAZAGENT OIL/GAS. We are a certified and authorized mandate that supply Oil and Gas products to buyers and consumers. We represent the major Oil Refineries to the Government of the Russia Federation to help buyers meet their various requirements and needs. We Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel (Gas Oil) and Fuel Oil D2, D6,ETC in FOB/Rotterdam, base email us (neftegazagent@yandex.ru) for more clarification and understanding as this is an arrangement and compromise with a take over bid. more of a government bond with incentives and relief. Kindly contact us with our information below for soft co-operate offer SCO.

E-mail: neftegazagent@yandex.ru
E: neftegazagent@mail.ru

pr-d Stroykombinata, 4, Moscow, 119530
Best Regards
(Mr.) Vladislav Yakov
Skype: neftegazagent
Vladislav Yakov
15th August 2017
We Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel (Gas Oil) and Fuel Oil D2, D6,ETC in FOB/Rotterdam only, serious buyer should contact now base email us (neftegazagent@yandex.ru)

PRODUCT AVAILABLE IN ROTTERDAM/ CI DIP AND PAY IN SELLER EX-SHORE TANK.

Russia D2 50,000-150,000 Metric Tons FOB Rotterdam Port.

JP54 5000,000 Barrels per Month FOB Rotterdam.

JA1 Jet Fuel 10,000,000 Barrels FOB Rotterdam.

D6 Virgin Fuel Oil 800,000,000 Gallon FOB Rotterdam.

E-mail: neftegazagent@yandex.ru
E: neftegazagent@mail.ru
E: neftegazagent@yahoo.com

Best Regards
(Mr.) Vladislav Yakov
Skype: neftegazagent

Thank You
Vladislav Yakov
30th August 2017
We Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel (Gas Oil) and Fuel Oil D2, D6,ETC in FOB/Rotterdam only, serious buyer should contact or if you have serious buyers my seller is ready to close this deal fast contact us below:now base email us (neftegazagent@yandex.ru)

PRODUCT AVAILABLE IN ROTTERDAM/ CI DIP AND PAY IN SELLER EX-SHORE TANK.

Russia D2 50,000-150,000 Metric Tons FOB Rotterdam Port.

JP54 5000,000 Barrels per Month FOB Rotterdam.

JA1 Jet Fuel 10,000,000 Barrels FOB Rotterdam.

D6 Virgin Fuel Oil 800,000,000 Gallon FOB Rotterdam.

E-mail: neftegazagent@yandex.ru
E: neftegazagent@mail.ru
E: neftegazagent@yahoo.com

Best Regards
(Mr.) Vladislav Yakov
Skype: neftegazagent

Thank You
Maksim Yaroslav
5th October 2017
AVAILABLE PETROLEUM PRODUCTS - D2, D6, JP54 & JETA1.

WE HAVE AVAILABLE PETROLEUM PRODUCTS FROM RELIABLE REFINERY IN RUSSIAN FEDERATION WITH BEST PRICE AND QUALITY.
BELOW PRODUCT ARE AVAILABLE WITH BEST OFFERS - FOB CI DIP AND PAY.

JP54: Quantity: 500,000-2,000,000 Barrels
D2: Quantity: 50,000-150,000 Metric Tons
D6 Virgin: Quantity: 400,000,000-800,000,000 Gallon

SERIOUS BUYERS PLEASE CONTACT US FOR MORE DETAILS WITH YOUR SPECIFIC REQUIREMENTS SO AS TO ENABLE US PROVIDE YOU WITH OUR WORKABLE PROCEDURE.
Sincerely.

Maksim Yaroslav (Mr.)
EMAIL: neftegazconsultant@yandex.ru
EMAIL: neftegazconsultant@mail.ru
Skype: neftegazconsultant
TEL: +7 9265036551
Maksim Yaroslav
5th October 2017
AVAILABLE PETROLEUM PRODUCTS - D2, D6, JP54 & JETA1.

WE HAVE AVAILABLE PETROLEUM PRODUCTS FROM RELIABLE REFINERY IN RUSSIAN FEDERATION WITH BEST PRICE AND QUALITY.
BELOW PRODUCT ARE AVAILABLE WITH BEST OFFERS - FOB CI DIP AND PAY.

JP54: Quantity: 500,000-2,000,000 Barrels
D2: Quantity: 50,000-150,000 Metric Tons
D6 Virgin: Quantity: 400,000,000-800,000,000 Gallon

SERIOUS BUYERS PLEASE CONTACT US FOR MORE DETAILS WITH YOUR SPECIFIC REQUIREMENTS SO AS TO ENABLE US PROVIDE YOU WITH OUR WORKABLE PROCEDURE.
Sincerely.

Maksim Yaroslav (Mr.)
EMAIL: neftegazconsultant@yandex.ru
EMAIL: neftegazconsultant@mail.ru
Skype: neftegazconsultant
TEL: +7 9265036551
Krivtsov Afanasy
12th October 2017
We are an Oil & Gas Trading Company which deals on Russian Petroleum Product Service such as JP54, D6, with good and workable procedure.. We are expert in exportation of Russian Petroleum Product around the globe...
Regards;
Krivtsov Afanasy (Mr.)
Tel: +7 9265036559
4 Blvd. Kirishi, Leningrad Region Russia 187110
E-mail: Krivtsovoilconsultant@yandex.ru
Email: krivtsovoilgasconsultant@mail.ru
Skype: krivtsovoilandgasconsultant
Krivtsov Afanasy
12th October 2017
We are an Oil & Gas Trading Company which deals on Russian Petroleum Product Service such as JP54, D6, with good and workable procedure.. We are expert in exportation of Russian Petroleum Product around the globe...
Regards;
Krivtsov Afanasy (Mr.)
Tel: +7 9265036559
4 Blvd. Kirishi, Leningrad Region Russia 187110
E-mail: Krivtsovoilconsultant@yandex.ru
Email: krivtsovoilgasconsultant@mail.ru
Skype: krivtsovoilandgasconsultant
Vladislav Yakov
17th October 2017
We Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel (Gas Oil) and Fuel Oil D2, D6,ETC in FOB/Rotterdam only, serious buyer should contact or if you have serious buyers my seller is ready to close this deal fast contact us below:now base email us (neftegazagent@yandex.ru)

PRODUCT AVAILABLE IN ROTTERDAM/ CI DIP AND PAY IN SELLER EX-SHORE TANK.

Russia D2 50,000-150,000 Metric Tons FOB Rotterdam Port.

JP54 5000,000 Barrels per Month FOB Rotterdam.

JA1 Jet Fuel 10,000,000 Barrels FOB Rotterdam.

D6 Virgin Fuel Oil 800,000,000 Gallon FOB Rotterdam.

E-mail: neftegazagent@yandex.ru
E: neftegazagent@mail.ru
E: neftegazagent@yahoo.com

Best Regards
(Mr.) Vladislav Yakov
Skype: neftegazagent

Thank You
Pavel Bakarnov
29th October 2017
I am Pavel Barkanov the managing Director of EXPRESS OIL AND GAS. We are certified and authorized mandate that supply oil and gas products to buyers and consumers. We represent the major OIL REFINERY to the Government of the Russia Federation to help buyers meet their various requirements and needs. we can supply Aviation Kerosene, Jet fuel (Jp 54-A1,5) Diesel and Fuel oil D2,D6 e.t.c in FOB/Rotterdam, if you are interested to buy any of the products, kindly contact us via;
Email: expressoilandgas1@gmail.com/expressoilandgas@mail.ru
Skype: expressoilandgas1@gmail.com

For more clarification and understanding as this is an arrangement and compromise with a take over bid. More of a government bond with incentives and relief. Kindly contact us with our information for soft co-operate offer SCO.
Best regards..
Pavel Barkanov
Vladislav Yakov
8th November 2017
We Can supply Aviation Kerosene,Jet fuel (JP 54-A1,5), Diesel (Gas Oil) and Fuel Oil D2, D6,ETC in FOB/Rotterdam only, serious buyer should contact or if you have serious buyers my seller is ready to close this deal fast contact us below:now base email us (neftegazagent@yandex.ru)

PRODUCT AVAILABLE IN ROTTERDAM/ CI DIP AND PAY IN SELLER EX-SHORE TANK.

Russia D2 50,000-150,000 Metric Tons FOB Rotterdam Port.

JP54 5000,000 Barrels per Month FOB Rotterdam.

JA1 Jet Fuel 10,000,000 Barrels FOB Rotterdam.

D6 Virgin Fuel Oil 800,000,000 Gallon FOB Rotterdam.

E-mail: neftegazagent@yandex.ru
E: neftegazagent@mail.ru
E: neftegazagent@yahoo.com

Best Regards
(Mr.) Vladislav Yakov
Skype: neftegazagent

Thank You
Vladislav Yakov
16th June 2018
We are please to inform your esteem buying company the petroleum products you are looking for is available in our storage tanks and reservoir for immediate delivery. Such as:

1) D2 DIESEL GAS OIL L-0.2-62 GOST 305-82.
2) D6 VIRGIN FUEL OIL
3) JET FUEL JP54
4) JET FUEL JPA1

Provide your official email or contact us via email to enable us issue our official soft corporate offer (SCO).Thanks.

BELOW IS OUR CONTACT INFORMATION,

E-mail: neftegazagent@yandex.ru
E: neftegazagent@mail.ru
E: neftegazagent@yahoo.com
Skype: neftegazagent

VLADISLAV YAKOV
Kuznetsov GAVRIIL
24th October 2018
I am a Broker to a Direct Mandate working with a reputable refinery, and we are to you, esteem buyers that the petroleum products you are looking for is available in our Tanks and Reservoir for immedaite lift and supply.

SUCH AS
1) JP54
2) JPA1
3) MAZUT
4) AGO
5) LNG
6) LPG
7) D2
8) D6
9) REBCO
10) EN590

Please contact us via our official email address.

kuznetsovgavriil.mikhailovich@mail.ru

Thanks.

Kuznetsov GAVRIIL Mikhailovich

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