Singapore: The bunkering industry is set for considerable consolidation, claims the boss of one of the newest firms in the sector. Lars Møller, ceo of 2012-founded Dynamic Oil Trading reckons that companies that lack the financial strength and liquidity to support their customers will not survive.
“We could be looking at a period of corporate Darwinism in the bunker sector, where being able to offer the best credit terms is a considerable differentiator and if you haven’t got the financial strength to do it, your business will suffer,” he tells Maritime CEO.
Dynamic Oil Trading launched last year in Singapore. An imminent office opening in Dubai is up next.
“Our decision to expand to Dubai was triggered by our growing customer base in the Middle East and an increasing demand for our services in Dubai, one of the world’s most important shipping and energy hubs, so it made sense for us to make this step,” explains Møller.
“The rationale will be the same when we expand to other strategic locations around the world,” adds the Danish national. Expect to see expansion in Europe and the Americas and the trading giant that is China.
“We are confident that as China continues to spearhead Asia’s growth, there will be further opportunities for bunker companies who understand the local and regional dynamics to take responsibility for fuelling domestic and visiting vessels,” says Møller.
In the competitive bunkering arena, one of Dynamic’s strong points, maintains Møller, is that it is a financially strong, well-backed firm.
“Critically, having deeper pockets,” he explaims, “means that we can offer particularly competitive payment terms and prices, when it is financially prudent to do so. We know how important this is to customers, particularly in the current market when liquidity is so scarce and alternative sources of finance have dried up.”
Møller has worked as a bunker trader for most of his career, including a number of years in Denmark before he moved to Singapore in 2004, where he served as managing director of OW Bunker’s Singapore office and as general manager of OW Bunker’s Asia operation. [23/09/13]