Starting a new bunker company is something most of us never get to experience. We have done exactly that here since December and it reminds me a bit of when I was getting ready for my fiancée to give birth. There is a huge amount to do. I’m “the credit guy” and I only see a fraction of the huge amounts of work that Finance, Risk, HR, Management and the Commercial heads are putting in. Just like having a baby, there are endless things you need to prepare for, sign, buy, arrange and have on property. You need to draw up new procedures and ensure your “what if” contingency planning is 100% comprehensive.
They say no plan survives first contact with the opposition and that is so true of setting up a bunker company. But we have been doing lots to bring Delta to the market and it has been pretty exhausting, with a few sleepless nights for sure. How gratifying then, to start seeing the business begin to flood in and for us to stop crawling and start walking.
Policies have been produced, reviewed, signed off and implemented. Our ERP systems are being tailored with dedicated development resources to what we need, how we need it. Barges have been sorted, documentation has been arranged. Office space has been acquired and moved into and now feels very much like home. Credit reports have been written about us, endless KYC forms filled in, suppliers are now giving us credit and bank lines have been arranged. It has been a tiring few months but as summer blooms, so too does Delta’s bunker business. Covid coming to an end so we can have well-deserved drink together at the end of the week is really nice too.
One of the loveliest things about having a baby is watching him/her grow; so fast sometimes it feels like you can see it happening in front of your eyes and I get the same vibes from watching how Delta has been planned, brought into being, loved and nurtured and is now growing and developing day by day by a multinational, multi-nation team of professionals all taking their “parent” role to heart.
Delta Corp is thrilled with the formation of a new company, Delta Energy Bunker to make its entry into the global marine fuels & renewable energy market.
Headquartered in Rotterdam and with further trading offices in London, Hamburg, St Petersburg, Geneva, Seoul and Singapore, the company has a new physical supply operation in the UK which is managed from offices in Hull, and will be commencing physical supply operations elsewhere during Q1-2021.
Besides sourcing and suppling for Delta Corp Shipping chartered fleet on a competitive basis, Delta Energy will also be brokering, trading and supplying fuel for other shipowners, charterers and bunker traders.
“We have taken some time, got the groundwork and financing in place and ensured that we have everything completely ready to bring to market. It has been some time in gestation to do it properly but we are finally happy to report that all is where we want it to be and we’re good to go.” comments new Commercial Head, Chris Todd.
“The barges are ready, the teams are trained and ready with everything they need to really hit the ground running. We have our systems in place with the full financial support and backing required, with two large bank lines already in use. We’re speaking to suppliers now across the world and telling them who we are, what we are and how we want to grow. There has been so much interest in what we’ve been doing. Its all systems go now.” he adds.
“This is a huge development and a paradigm shift in how traditional bunker companies transact business. Delta Energy is starting out with a global footprint, onboarding a world class team of fuel traders, getting into physical supplies at multiple locations at the onset. I wish the Delta Energy team and its management all the success” says Mudit Paliwal the CEO of Delta Corp.
Delta Energy Bunker can be contacted through its website – www.deltabunkers.com
It is fair to say that 2020 wasn’t what anyone could have predicted. However, 2021 we start with something I take great pleasure in announcing and something I consider to be very special.
The start of our new bunker company Delta Energy has been a long time in the making and something I have personally wanted to do for a while. Having worked in some of the best bunker companies in the world in lead roles, alongside some of the best people in the industry, I now feel the time has come to pull together all the best bits I learned over my 20 year career and create a unique and special bunker company that makes difference. A company which will push boundaries and one day leave a legacy that all those who are part of it can be proud of.
We are not here to be the next bunker player in line; we will be unique, different, do the job with a smile on our faces and let the way in which we work rub off on those around us. For years, the team I’ve worked with has always been known for being a little unorthodox, having fun whilst always being professional and serving our clients to the best of our ability to make their lives easier. We will be diverse in many different ways and we will be like no other in our various offerings.
With a lot of old fashioned hard work, thinking outside the box, a willingness to explore new avenues, coupled with honesty and integrity we will create something that those who join us on our journey will feel the benefits of in many ways.
I’m extemely proud of the team we’ve assembled here. It is already one in my view that could and will stand shoulder to shoulder with our biggest peers. It’s a very exciting time for the Delta Group and so I look forward to your support now and in the years to come as we approach this this new era with cautious optimism.
All the best,
IMO2020 with its sweeping, seismic new sulphur restrictions wasnt even slightly The biggest thing to happen to shipping last year.
There is something almost comforting in moving our collective glance back to the same issue that has been worrying credit managers since 2008: poor market rates in the box sector.
The container market has been a very difficult place to make money over the last few years and therefore an area of concern for bunker credit managers. Box rates ended the year very solidly and there were high premiums being added onto Asia-US and Asia-EU traffic, with a noticeable drop in newbuild orders to boot. Per FEU rates from China to the United States ended 2020 at 208% for West Coast and 110% higher for East Coast than in 2019, according to the Baltic Exchange. For those correctly-placed with the right tonnage on the right routes with the right traffic, the prevailing rates moving into January have looked very good.
Odd as this may sound, one of the reasons the box market has trended upwards in 2020 is because of robust demand for medical equipment and protective clothing from the Covid pandemic, from manufacturers in Asia to the US and EU/UK.
Ongoing uncertainty in the financial markets as banks look to deleverage shipping investments has raised the bar for capital lending and this coupled with the IMO2020 restrictions and lack of a consensus on vessel propulsion choices has softened newbuild numbers which has been the major issue dogging containers for the last decade or so. The bigger the global fleet, the more out of equilibrium the global fleets are in terms of supply vs demand. This has a direct effect on the levels of risk we as bunker companies are taking when we extend credit to the market for fuel purchasing.
As the world moves towards a Covid vaccine and we can begin to contemplate how life might look once this pandemic is over, we can also be thankful that the major shipping markets are in a better position than they were.
2020 has taught us to be careful what you wish for and that truth can often be stranger than fiction. Like a figurative chocolate box from a famous movie, we are looking forward to what surprises 2021 has in store,