TransNav: Due diligence on bunker suppliers more important than ever

TransNav: Due diligence on bunker suppliers more important than ever

Singapore: All shipowners need to be especially careful carrying out due diligence on bunker suppliers, warns one tanker owner in today’s regular Friday shipowner profile on Maritime CEO.

Morten Olsen Vind is the vice president at Singapore tanker player TransNav Shipping. He tells Maritime CEO: “One major concern we are having these days, and I do not believe this is only TransNav as it affects the shipowning and managing community worldwide, is the increasing need to very carefully perform due diligence on our bunker suppliers. Some suppliers are massively exposed due to many market-suffering owners in the bulk, offshore, and the container sectors. In cases where bunker companies default, the result can be a second bill for bunkers to the actual suppliers.”

With the state of the markets as they are, and ensuring operational expenses are kept as low as possible, this is a contingency that must be avoided – hence the need for scrutiny.

Presently the TransNav fleet comprises oil tankers and chemical and oil tankers. Its oil tankers are 1,200, 7,000, 14,000 and 46,000 dwt while its chemical and oil tankers are of 5,000, 6,500, 9,000, 36,000 and 46,000 dwt. In total it has 12 vessels.

“Looking ahead we are exploring expansion in a number of areas, including more vessels in due course,” Vind reveals, adding: “In India, where we have offices and substantial human resources in Mumbai and New Delhi, we are eyeing opportunities in this rapidly developing business environment both within and outside the tanker market.”

On the markets, Vind says tankers continue to deliver “acceptable results”. However, he warns: “Sentiments and predictions are not positive, and this is mainly due to the simple fact that all markets in shipping are having a difficult time.”

Vind predicts an unchanged tanker market pertaining to trading vessels below 15,000 dwt, possibly slightly declining its our mid-range vessels.

As well as keeping an eye out for bunker suppliers, Vind reckons the most significant challenge for owners in the current climate is raising funds: “That resonates across all aspects of business,” he concludes.

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