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Supply Chain Advisors
Bunker Implementation Support
To help bring more control and greater clarity to fuel prices following the IMO low-sulphur regulatory change, we have introduced an exclusive range of fuel advisory and management services for shippers and forwarders.
Have you considered the following:
Are your BAF baselines and trade factors accurate..? Is your standard bunker program up-to-date..? Is there a cost difference between carrier bunker costs for ships with and without scrubbers..?
As well as helping answer the above, our new range of fuel management advisory services can 1) help avoid big discrepancies between the BAFs of different carriers and forwarders 2) simplify your carrier invoicing and 3) help you find and adopt the right BAF mechanism for your organisation.
Extreme variations are already being seen in fuel charges between carriers on the same tradelane for similar-sized ships. See below:
Source: Drewry Maritime Research
On the Asia-to-US East Coast route, some of the carriers' BAFs increased by 40% in 1Q 2020, whereas other carriers' BAFs increased by just 15%, based on a sample of 5 carriers.
Pre-RFQ and standard bunker implementation support services for shippers and forwarders.
- Minimise the risk of excessive BAFs from carriers
- Better control over the fuel portion of your freight rates
- Cost competitiveness of your BAFs
- Align your contractual practices with best practices
- Simplify carrier invoices and invoice auditing
- Keep up to date with environmental rules and ship propulsion practices which could impact freight rates in future
As well as having timely access to robust market data, to be confident of achieving the best terms of service and value for money, shippers need to adopt the right approach to prepare for, plan and manage the entire process from initial pre-RFQ to bunker program implementation, review and monitoring.
Transportation Manager, Global Paper and Pulp Manufacturer
Senior Procurement Manager, International Provider of Office Supplies
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