Course description
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 IMO’s 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.
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Suitability
This course will be of interest to anyone involved in the planning, buying and selling of bunker fuels, physical and paper traders, brokers and ship operators – or participants whose organisations offer services to this industry.
Content
Bunker Fuel Supply
- The nature of crude oil
- Refining – capacity and fuel production
- Fuel manufacture
- Refinery upgrading
- Future refinery operations
Bunker Fuel Demand
- Sectorial fuel use
- Regional fuel use
- Future trends
- Demand shifts
- Demand and supply balances
Pricing
- Fuel and the refinery economics
- Specifications
- Characteristics affecting price
- Pricing methodology
- Price variations
- Fuel cracks
Price Drivers
- Fuel oil trading including blending and an overview of hedging, storage, arbitrage and spreads
- The market participants
- Physical trading
- Derivative trading
Structural Changes
- Bunker specification changes
- Emission trading – overview
- Future pricing – overview
- Buyers strategy
Regulations and Standards
- Impact of changes in specifications
- Alternatives – LNG bunkering, scrubbers
- ISO 8271
Price Risk Management
- Price risk management techniques
- Developing a bunker purchasing strategy what are the impacts for the suppliers
Metering and Claims Procedures
- How does more accurate metering lead to better business
- When to mediate - when to arrest how to streamline claims procedures
Bunkering Strategies for Ship Owners
Exercises and Cases Studies
- Where and how much to bunker – a ‘real time’ exercise
- Blending and Testing for Quality