Webinar , virtual conference , next ….Live auction??
It’s not surprising that for retail in China in 2020, most of the sales are being done in live stream versions through taobao and Douyin ( China version of tiktok), from lipstick , seafood to vessels are being auctioned online.
In bunkering , we also see many trading houses and publications hosting their first seminar: Regular course, panel interview, some go into the realm of self help . Even the biggest conference for bunkering this year will first move from Singapore exhibition hall to online . So what next ? Live stream bunker auction ?
It will be difficult because
1. Bunker price is sensitive to eta and vessel
It’s hard to just bid “380cst” without knowing much details , as supplying next Sunday and in 4 hours could mean huge differences in most major ports. Also different quantities will be different prices, Its pretty unwise to assume same offer for a 50MT and 500MT supply.
2. Credit
Even for the same quantity and same ETA, different clients receive different prices . It’s crazy to think a 90days payment client will have the same price as a sharp 30 days client. Risk premium is a fancy term for “We have to earn more on this client or its not worth it “. Therefore simply posting a “set” 380cst price online without knowing much credit details could not be the best idea for most client
3. Scarcity
One of the biggest drives for online auction is scarcity. Winner’s curse in auction refers to the ending bid that normally exceeds what the product really worth. These “special “ price products are only limited to 100 pieces and first come first serve. However for a bunker enquiry, if your ship is coming in 2 weeks, there is no much urgency unless its expected will be shortage of cargo. It’s much harder to create the same intensity of urgency in live auction bunkering trading.
Will you be interested in participating in a live bunker auction if there is one ?
Until next time
