Redefining fuel trading in the marine industry
FUEL MANAGEMENT SOLUTION
At Integr8, we recognize that the “one size fits all” approach to trading platforms may not maximize the value certain customers can obtain when procuring their bunkers in the marketplace.
That is why we embarked on putting together a completely new trading platform, that ensures large and sophisticated customers secure their fuel needs in the most efficient manner possible. The result of such efforts is what we call Fuel Management Solution.
Our solution is based on: Efficient Bunkers Procurement, Absolute Transparency and Planning Advice.
EFFICIENT BUNKERS PROCUREMENT
A network of well-connected trading desks across the globe, ensures the customer gets full 24/7 coverage, efficient pricing, with vetted suppliers which minimizes the risks of claims
The underlaying nature of the whole proposal lays in that the system has been built from bottom up, ensuring that the procurement process is completely transparent to the customer.
This approach does not end with the purchases that are made on behalf of the customer. The customer will have access to price and quality discovery tools that bring transparency to an otherwise low visibility market.
Buying bunkers is just the starting point. That’s why each customer is assigned an Account Manager, whose job is to ensure the customer has a proper understanding of the market and opportunities out there. Decisions are made taking into consideration the broader picture rather than a specific purchase.
Given no market reference has greater relevance than actual fixture data, under Integr8’s Fuel Management Solution, the customer will be afforded access to real fixture data stemmed by our trading desks worldwide – without disclosing any sensitive information such as the counterparties involved – which will provide the customer with a unique perspective of the marketplace in real-time.
Actual fixtures are presented along with market benchmarks
For customers it is crucial to ensure that Integr8 is buying efficiently on their behalf. Efficiency comes from achieving competitive prices through effective coverage of the suppliers available.
To achieve this for every stem fixed by Integr8 on behalf of the Fuel Management Solution customer. The following can be seen in a single location:
The price fixed for a particular stem.
The other prices obtained and dropped and the reason for the decision taken.
The price of the other fixtures produced by Integr8 on that date, at that port, for that product.
Each stem fixed is presented alongside rejected quotes and other fixtures for benchmarking purposes.
Auditing made simple
Given the intrinsic open-book nature of the Fuel Management Solution, it is important that the customer has the means for easily auditing Integr8’s purchases, hassle-free, on its behalf. That’s why we set up, in our Customer Portal, all the infrastructure for making available any relevant information to this purpose.
48 hrs after a ship has been stemmed, the administrative team of Integr8 based in Singapore, secures the relevant documents from the supplier and uploads them in the Customer Portal:
Supplier’s BDN / BDR.
The customer inputs their requirements into Integr8’s Customer Portal either as a firm order or a price enquiry, at which point Integr8’s trading system kicks in:
The enquiry is duly picked up by the most suitable trader in the most appropriate office (considering the intended supply port, promptness of the stem and time zone).
The team of Account Managers monitor the work of the trader (or traders) taking care of the stem in question, liaising with the customer as required.
The stem is fixed – if so requested by the customer – and is handed over to the Operations team, who will proactively monitor its execution.
One place for the customer to submit either enquiries or firm orders
Feedback is key for our continuous improvement. Hence, through the Customer Portal, the Fuel Management Solution customer has the capacity to rate the experience of the service received from Integr8 on each specific stem, being able to rank the selected supplier, the port, the trader and the overall experience.
Quality is the single largest risk posed by changes to marine fuel regulation proposed by the IMO in 2020. Having the ability to foresee what quality is being delivered at any given time worldwide would enable our customers to take strategic decisions. Pre-empting this need, Integr8 has started to partner with several fuel testing laboratories, to come up with the first comprehensive real-time database of fuel quality and compatibility. Powered by +250k fuel test results annually, it will give the end user a unique perspective regarding fuel quality delivered across the globe.
Supplier Assesment Realtime assessment of fuel quality for a given supplier in any given port
Capturing fuel quality data worldwide allows the user of our Customer Portal – part of the Fuel Management Solution – to gain visibility on what quality of bunkers are being delivered at any port in the world.
Historical data helps not only to gain a sense of current performance for each supplier, but also to detect trends and avoid troublesome sources of bunkers.
A whole range of relevant properties being monitored permits the technical department of each shipowner to tailor its judgement of the convenience of a given supplier or port, focusing on the variables that matter most to each ship.
For a quicker and more general view of the quality of bunkers available in any port from a given supplier, Integr8 has created the Quality Index, which aggregates in a single figure the quality of each source of fuel available in the marketplace.
Our Technical Department has tailored the weights used in the algorithm for each type of fuel, in order to highlight the properties that are most relevant, resulting in a more meaningful assessment. Also, our proprietary Global Index contemplates non-linearity to tackle the higher negative impact of a severe off-spec situation. This prevents good results averaging out serious quality problems.
Having the capacity to map the prices indicated by different suppliers, to an unbiased and objective appraisal of the quality of fuels each individual supplier has delivered recently to the market, puts Integr8's traders in an unrivalled position to make smart decisions on behalf of their Fuel Management Solution customers.
Dynamic Energy Trading, is the clear confirmation that data-driven trading is here to change the way marine fuels are traded. In this regard, Integr8 offers the very first and a unique solution of this kind to its Fuel Management Solution customers.
Integr8’s Fuel Management Solution is trusted by customers that appreciate a high-quality service:
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