Fundamentals of Bunker Supply, Demand, Pricing & Operations (CLASSROOM) - BUN1

Fundamentals of Bunker Supply, Demand, Pricing & Operations (CLASSROOM) - BUN1

Course Summary

Fundamentals of Bunker Supply, Demand, Pricing & Operations is a two-day instructor led course presented by the energy training experts at Mennta Energy Solutions. Developments in the bunker fuel market are one of this year's hottest topics. The implementation of IMOs global ban from 1 January 2020 on sulphur emissions greater than 0.5% has raised a number of questions over:

• the future availability of new very low sulphur fuel oils (VLSFO)
• price differentials between marine fuels
• the alternatives to burning VLSFO
• the stability, miscibility, sampling and compatibility testing of new fuels
• fuel standards and test methods

In addition, moves are underway in the shipping industry to reduce levels of greenhouse gas (GHG) emissions. Apart from considering ship design and operations, this involves consideration of fuels derived from renewable resources including certain sources of methanol, biofuels, ammonia and hydrogen. Shipowners are already participating in projects to develop such fuels. The relevance of this is that new vessels ordered in the next decade will still be around in up to 20 years time or more.

This is an intensive two-day course covering bunker fuel demand and supply, pricing, physical and paper trading, bunker buying, legislation, blending and testing for quality. Presentations by a team of experienced industry experts are combined with exercises and case studies as part of the training experience.

Course Content

Bunker Fuel Demand and Supply

• Sectorial fuel use
• Regional fuel use
• Future trends
• Demand shifts
• Demand and supply balances

Pricing

• Specifications
• Characteristics affecting price
• Pricing methodology
• Price variations

Price Drivers

• Fuel oil trading including blending and an overview of hedging, storage, arbitrage and spreads
• The market participants
• Physical trading

Blending Operations

Regulations and Standards

• Regulations governing emissions;
• Scrubbers, open/closed loop systems, economics;
• ISO 8217 and bunker fuel specifications;
• Fuel quality, compatibility, cat fines, miscibility;
• Alternative fuels.

Risk Management

• Strategies both from a pricing perspective? where to buy, what sort of quantities, from whom and an operational perspective;
• Management of price, operational, reputation and payment Risk.

Metering and Claims Procedures

• Test Methods
• How does more accurate metering lead to better business
• When to mediate - when to arrest; how to streamline claims procedures
• Loss Prevention
• Blending and Testing for Quality and Quantity (Custody Transfer)

Sample Testing Techniques

Bunkering Strategies for Ship Operators and Suppliers

• Stemming cargoes for single voyages;
• What quantity? where? impact on cargo loaded? differences arising out of trading in tropical or winter zones.