New York-listed bunker fuel supplier Aegean Marine announced it will cease physical supply operations in Singapore as of January 2018. The company will fulfill all deliveries and contracts that have already been finalized, and will continue to maintain a trading presence in the port.
Aegean cited increased competition in the port as a driving factor in the company’s choice to exit the market. “2017 has seen heightened commercial pressures in Singapore, and as a result, management has determined that Aegean’s resources can be more profitably deployed elsewhere,” said company president Jonathan McIlroy.
Singapore is the world’s largest bunkering port by volume. January-September bunker sales totaled 38.02mn t, up by 4pc from 36.56mn t in the same period last year, according to the latest data released by the Maritime and Port Authority of Singapore (MPA).
The announcement comes on the heels of last month’s liquidation of Singapore’s third-largest bunker supplier, Universal Energy. Singapore lenders have since raised their credit standards in response, forcing suppliers to either pay higher costs or increase their risk exposure.
In 2016 Aegean Marine was ranked as Singapore’s 20th largest bunker supplier by volume, up from 22 in 2015. The MPA listed 58 registered bunker suppliers in 2016 and 59 in 2015.
Source: Hellenic Shipping News.