I N D U S TRY INSIGH TS M A R I NE F U EL & BU N KER T R ADI N G : 2 0 1 2 M A R K ET OVERV I EW & 2013 FO R EC AS T S
MARINE FUEL & BUNKER TRADING 2012 MARKET REVIEW The bunker trading markets have seen mixed results during a difficult environment for the overall shipping markets. Knock on effects from the global slowdown in trade, together with increasing oil costs, have led to many ship owners reducing volumes, experiencing cash flow difficulties, or defaulting on fuel payments altogether. In some regions, such as Singapore, this strain has led to bunker suppliers and traders exiting the market, as well as an increased number of legal disputes with suppliers. However, overall hiring in supply and trading remains strong, as trading companies look to bolster their position or diversify into new markets. Whilst many trading houses and suppliers have looked to build a physical presence in geographical areas which are less saturated, some are also developing portfolios in other products such as lubricants, LPG’s, and alternative fuels. Significant hiring has been seen within some of the larger trading houses as investment is continued in an attempt to gain larger market share. The focus of this hiring has mostly been within the back to back trading space; however, an increase has also been seen in the demand for individuals with derivative and risk management skills, as traders and ship owners alike look to ensure continued profitability and mitigate exposure to fluctuating oil prices. Geographically, expansion within the Americas has been considerable as a number of European firms have established teams within the US. Across Europe, growth has been steady with some firms hiring in the UK, ARA region and continental Europe. The Middle East and the Indian Subcontinent have also seen development, however recently some ports, Fujairah in particular, have felt the impact on trade restrictions with Iran.
S A L A RY OV E RV I E W
Junior Trader 1-3 years’ experience Experienced Trader 3-7 years’ experience Mager/Director Level 7-15 years’experience
EUROPE (1,000GBP)
ASIA (1,000SGD)
UAE (1,000AED)
32-37
36-66
64-90
37-70
60-120
180-276
80-100
120-240
240-550
2013 MARKET FORECAST Continued expansion is expected within the US, as teams established in Houston now look to build regional teams within the West Coast and Tri-State areas. Hiring is also expected within the marine lubricants space, as European suppliers look to expand into new markets. Whilst Singapore remains one of the world’s most important bunkering hubs, it is unclear at this stage as to the long term effects of continued strain on the shipping markets. Any hiring is likely to be with trading houses looking to focus on wider SEA markets, whilst hiring within physical suppliers is expected to be minimal. In Europe, growth within trading firms is largely expected to be within the UK and Continental Europe. However with sovereign debt problems and Euro Zone uncertainty in Southern regions looming, coupled with reducing shipping volumes, hiring in these areas is expected to be limited – particularly within smaller firms. Whilst net hiring in 2012 has increased, there has been less demand for entry level traders and non-revenue generating candidates. This trend is likely to continue as shipping volumes and fuel demand suffer. Ship owners are making careful decisions as to their bunker managers, with many commentators suggesting that fuel costs are now the most crucial issue facing shipping companies. Some movement is expected as owners look to ensure that they are employing the commercial and strategic skills now required to ensure profitability.
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