Integrity in bunkering: Kpi OceanConnect at LISW 2021

What do we mean when we talk about ‘transparency in bunkering’? For an industry that’s traditionally been quite opaque, the concept is potentially revolutionary.

The marine fuels market transformation that started with the implementation of IMO2020, is creating an opportunity for the marine energy sector to radically upgrade the way in which it does business.

Over the last decade we’ve seen a new generation of shipowners emerge who are actively challenging the status quo. Some say it’s because they’ve become used to greater openness in other areas of their lives, others that it’s simply because they recognise the inefficiencies that opacity can often disguise. Either way, their demand for greater transparency throughout their marine fuels supply chains is one that we welcome.

At this year’s London Shipping Week, KPI OceanConnect’s Neal Bolton joined Mark Williams of Shipping Strategy, Kieran Michael Brown of Island Oil, Adrian Jones of Markel International, Britt Russell-Webster of S&P Global Platts, and Daniel Rose of Signal Group at Petrospot’s ‘Transparency in Bunkering’ forum. Their debate considered the role of transparency in the credit and financial elements of bunkering, counterparty risk management, marine insurance and bunker pricing.

A trader’s perspective on transparency

Looking back to his early years in the bunkering industry, Neal spoke about the lack of transparency before the arrival of the internet. Today, online marketplaces – such as KPI AuctionConnect our online bunker procurement platform where we can complete auctions for our clients within 15 to 20 minutes – provide a transparent and holistic overview of financial costs within the bunker market. Agreeing credit charges in advance and having open discussions about invoices, for example, mitigates a lot of the risk involved in counterparty dealings.

On top of bunker price transparency, there is also a growing market within the sector for data accessibility. This is an area we excel in and through our partnership approach we work with our suppliers and buyers to provide greater insight and expertise.

By embracing digitalisation and sharing knowledge we enhance transparency which ultimately helps us to achieve both our business partners’ and KPI OceanConnect’s sustainability goals. Digitalisation supports our drive for an even more efficient business that provides our partners with the fuels they need to optimise their performance. We are continuously adding more solutions to our portfolio, recently in the form of alternative fuels and carbon offsetting, to offer partners an array of viable pathways to decarbonisation.

Summarising the session, Neal reflected that there’s a need for greater transparency from the full value chain – suppliers, buyers and owners – if we’re to move towards a more sustainable future. The green legislative agenda is demanding more planning and partnerships because of the huge investments needed. To do that, businesses will have to be more open and transparent with each other. We’ve already embraced digitalisation at KPI OceanConnect with our online trading platform, and we’re open to adopting more digital tools to support our customers in the era of decarbonisation.