How much did MFM contributed to shipping ?
Some say millions and some say billions are saved in shipping industry.
Trust is one of the major cost in all type of business. In Bunkering, what we do when there is no trust in operation ? We have surveyor on board , Mass flow meter, ship representative on boards.
What we do when there is lack of trust in trading ? Cash in advance, long list of terms and conditions or risk premium , which is a fancy term for – add more margin in case late payment.
With technology, MFM make operation trust issue vanish. You worry about shortage of quantity by measurement / density / temperature ? No worry MFM flow meter will do everything for you. Supplier worry about bunker crew might claim shortage even they supply full quantity ? No worry MFM barge figures final and binding – C/E is welcome to say they never receive a drop of bunker ( or my favorite, – 20MT short before pumping started .
What is next ? trust in trading ? When the credit score system is so successful in China, why don’t make it to company level. At the end of the day, it should be easier to monitor company finance than an individual. If there is a central credit system, the rest become a game of finance. 75 days late pate regularly for past 2 years, what is lowest margin suppliers now willing to do ?
So do technology increase or demolish trust ? Do we trust our partner more because of automation (like MFM) and more data ?? Or we simply don’t need to trust our counterparty but to the big data / algorithm behind ?
Until next time
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