Not in Kansas Anymore
Steve Simms, Principal of Simms Showers LLP, recently published an article in Bunker Bulletin detailing the likely changes to be seen in the bunkering industry in the wake of the OW collapse. Since the announcement of the OW insolvency in November 2014, the landscape of the bunkering world has certainly changed. There are currently at least 837 legal actions proceeding around the world arising out of the worldwide OW collapse, which is likely going to usher in drastic changes in the bunkering industry. One of the major results of all of these actions is that physical suppliers, who collectively remain unpaid from OW, will now insist on security for payment for bunker provisions. Physical suppliers will also be examining their terms and conditions of sale to make sure that they are protected in the event of nonpayment for their provisions. It is also very likely that physical suppliers will attempt to develop direct customer relationships with owners and charterers of vessels rather than going through a broker / trader middleman. In fact, each entity in the traditional chain of the bunker supply transaction will now probably be more wary of involving brokers / traders in transactions, especially newer or less capitalized brokers / traders.
For more information on how the OW insolvency and resulting legal actions are likely to transform the bunkering industry, read a full copy of the article here.