Recently a platform gather pricing from 100+ bunker buyers and sharing their fixing price online so other buyers can know what is market price . It seems it could “save” additional profit margin from bunker trader and physical supplier , yet is that so straightforward ?
The premises of the ” lowest buying price ” is stemmed from the same concept of “bunker exchange”, treating bunker price as a commodities as purely supply/demand and there is a lowest equilibrium point – there is one lowest price and everyone should be able to get it , like stocks. yet I would say you will probably be disappointed when
Case 1: Your vessel coming tomorrow
After the 10th buyers report lowest buying price today is 500usd/mtd, yet the best price you have from the only one supplier can do is 520usd/mtd. You try to argue with the supplier that “ but the lowest market price today is 500usd/mtd !! “ supplier might suggest you purchase with anyone who can supply with 500usd/mtd, while gently reminding you validity left only 5minutes .
Case 2: You don’t have the best payment performance
Similarly , your past payment performance is kinda late and sometimes even double / triple the credit terms, this round you receiving price 30usd/mtd higher than the lowest price the platform suggested. The only way you could get the lowest of the day offer is either you pay cash in advance or the platform might act as trader and provide you with the said Low price with credit.
Case 3: You own / chartered a problematic vessel
For some reasons your vessel is not very popular in that particular port , and out of 10 suppliers only 3 will offer and the price is “off”. In this case you could only negotiate from the “off price” instead of getting the lowest of the day
In shorts , I am always a big supporter for having a wide range of information source , yet have a realistic expectation and trading strategy will help you getting the best price possible !
Until next time
