Bunkering in Singapore : challenges and ideas to maintain Singapore as the world's top bunkering port

• Main Author: Soh, Gary Wee Kiat.
• Other Authors: School of Civil and Environmental Engineering
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Engineering::Maritime studies::Maritime management and business
• Online Access: http://hdl.handle.net/10356/54672
• Institution: Nanyang Technological University

The period from 2008 to 2012 has been trying time for the local bunker suppliers. The number of Singapore accredited bunker suppliers fell from 79 in 2011 to 71 in 2012(MPA 2013), as smaller suppliers find it harder to stay afloat as profit margins shrink away. Credit, or rather lack of it, is the biggest challenge for Industry. With banks reluctant to dip into their liquidity, bunker suppliers face significant issues. They are starved for credit to maintain and carry out operations whist waiting from returns via credit lines. They scramble for funds to finance derivatives to offset their risks. They face a hand to mouth existence as bunker volatility threatens to erode away profits. A balanced approach is needed ride this crisis. Careful assessments of Credit and Hedging Risk is essential to help minimise risk exposure, and give them more flexibility in managing finances. Hence this study will present Industry best practices in both assessments and discuss means to improve the governmental support Singapore gives its Bunker Suppliers