Recently MPA had updated the criteria of applying to be physical supplier in Singapore, few points worth mentioning :
1. “To have a minimum paid up capital of S$500,000;”
Frankly from S$500,000 to S$5,000,000 doesn’t really matter much for the risk arise from the bunker price today, for any supplier who target for more than 10kt per ton that’s already USD7M+ transaction not including other cash needed for operation and sustain a healthy cash flow, look at the debt mess on recent collapse of other supplier , we are entering a more hostile business environment
2. “Investment in Storage Facilities in Singapore:
- Preferably own or lease storage facilities”
Its a very interesting rule as across Asia, the storage operator and the physical supplier is normally different players, due to the way of conducting business on trading cargo vs. physical supply is a very different business model However on the bright side the cost ratio of storage compare to the oil price is so much lesser than previous due to increasing LSFO price.
3. Any other Value-Add Proposition(s) that can further improve the bunkering sector (e.g. improvement, less reliance on foreign labor)
The next improvement I believe in the bunkering industry could be made from
– AI and automation, its still a new concept but as i mentioned in previous article, it will be more efficient for more simple task like eta acquirement, historical mops data to be done by chat-bot or AI than a human doing the repetitive job.
– Being a HK supplier myself in the past and also discussed with different supplier in Singapore , its seems no young blood are joining on the crew side, The biggest contribution I think could be usefulis to make is to attract more young people to join the industry, not only the trading side but also crewing, operation side.
until next time
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