Assistant Bunker Manager, Atlantic
I managed our bunker desk in London from where I run our bunker procurement strategy in the Atlantic, developing a portfolio of physical bunker fuel contracts with several of the most reputable marine fuel suppliers and trading houses.
It is a challenging role requiring a good understanding of both the shipping and oil industries, and an appreciation of the volatility of oil prices driven by economic and geopolitical factors. Bunker fuel is our biggest expense, and our bunker cost management strategy is all the more important in in the current challenging dry bulk shipping and oil markets.
Our Company provides freight cover to many of our customers under long-term freight contracts extending several years into the future, which leaves us potentially exposed to significant bunker price fluctuation over time. On concluding a freight contract, we hedge this exposure
with financial tools provided by reliable financial institutions. In so doing, we lay off the risk of price fluctuations so our total cash outlay for fuel is aligned with our income from the long-term freight contract.
Effectively piecing together this puzzle requires coordination between our chartering and bunker teams, and between our Hong Kong and London bunker desks. Through good relations with our physical bunker suppliers and bunker hedging counterparties, we aim to provide the most effective management of our Group’s largest cost. We do this for the long-term sustainability of our business, and so we can focus our energies on providing our customers with a reliable freight service and to enhance our customers’ confidence in Pacific Basin as a healthy counterparty and a long-term freight partner.