After a week of shocking (and juicy) news from one of the biggest bunker trading house , many client want to know what should be done in case there are rumors on their own channel in future;
1. Always know whats the exposure NOW
keep in close distance how much is the invoice to be paid and when is it due, how many ships are waiting to be supplied, keep in close contact with the counter-party so in case their order got cancelled by physical supplier you can act fast and re-nominate asap.
2. Keep record for NOC for previous supply
Always asking for NOC (No Objection Certificate) , a written statement that make sure the physical supplier is already paid by your nominated trader / middle man. A very good tool to minimize (not 100%) that you have to pay the invoice twice .
3. Credit management
Knowing that there might be risk arisen, consider how much credit/ how many MT you want to fix with one particular channels, what if your ONLY ONE source of credit / buying channel is down tomorrow and you have 5 vessel to fix ? Its crucial for buyer to do credit and risk management toward the seller when approaching 2020. more on this topic can check out 30 days Beginner Guide Day 29: Credit Management
Hope everyone is well and until next time !
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