Moore Stephens Warns Offshore Maritime Sector to Watch Costs and Risk Exposure
International accountant and shipping adviser Moore Stephens said today that companies in the offshore maritime sector need to keep a close watch on costs and manage their exposure to risk in the wake of the dramatic fall in oil prices. “It is remarkable how quickly the dramatic fall in oil prices has fed through to increasing levels of financial stress in the oil and gas services industry, where the sudden drop to around $50 a barrel is triggering cost-cutting across much of the sector…
Former OW Bunker Manager Appeals 18-month Jail Term
The former manager of marine fuel supplier OW Bunker's Singapore subsidiary said on Tuesday he would appeal the 18-month jail term he was sentenced to last month, his lawyer told Reuters.On May 30, a Danish city court found Lars Moller, former head of Dynamic Oil Trading in Singapore, guilty of granting credit outside his mandate, contributing to OW Bunker's bankruptcy.Moller's defense lawyer said on Tuesday, that they would appeal the verdict and aimed for him to be "fully acquitted".The 2014 bankruptcy of the firm, then the world's leading supplier of bunker fuel with a 7 percent market shar
Former OW Bunker Manager Gets 18 Months in Jail
A Danish court on Wednesday sentenced the former manager of OW Bunker's Singapore subsidiary to 18 months in prison after he was found guilty of granting credit outside his mandate, contributing to the bankruptcy of the marine fuel oil supplier.The 2014 bankruptcy of OW Bunker, then the world's leading supplier of marine fuel oil with a 7 percent market share, sent shockwaves through the global shipping industry and left investors and business partners scrambling to cover their losses.The city court of Aalborg said it found Lars Moller…
Gulf Petrochem Bolsters its European Bunkering Division
Gulf Petrochem Group (GP) has strengthened its bunker trading team in Europe with the appointment of Maxime Cramer to the group’s Rotterdam office . He joins a team of bunkering traders headed up by Chris Todd in Europe’s largest bunkering port, Rotterdam. Cramer has in-depth knowledge and vast experience on both the customer and supply side of the business, having previously held trading positions with OW Bunker and Minerva Bunkers. The appointment of Cramer will further bolster GP’s global bunkering division which is currently headed up by Chris Todd…
BIMCO: Recommended Amendments To Bunker Contracts
As widely reported in the maritime press, the United Kingdom's Supreme Court has granted an expedited hearing to Product Shipping & Trading's case against the collapsed OW Bunker (the Res Cogitans). The hearing will take place on 22 March in London and will deliver the final English law verdict on whether many hundreds of shipowners should pay OW Bunker's assignee ING Bank or pay the physical suppliers. In October 2015 it was held by the Court of Appeal that the UK Sale of Goods Act 1979 did not apply to contracts signed with OW Bunker as an intermediary for the supply of bunkers on credit.
Danish Investors Summon OW Bunker Parties to Court over Bankruptcy
A group of 26 institutional investors has issued a summons against bankrupt Danish ship fuel supplier OW Bunker in the latest stage of a legal campaign for allegedly misleading them in its 2014 initial public offer (IPO). The investors had said last year they would sue Bunker, private equity fund Altor and the company's board over their responsibility for the company's flotation prospectus, after the company filed for bankruptcy just months after listing. The investors, which include two of the largest pension funds in Denmark…
The Other Side of the Flange
Looking beyond the dollars and cents in the demise of bunker giant OW Bunker, MarPro contributor Barry Parker examines the unusual human resources aspect of the story. The old cliché in shipping and commodity businesses says that, “When the tide recedes, you can see which vessels have hulls that are battered up, or worse, actually breached.” OW Bunkering, which took on water and foundered in November 2014 – a mere seven months after a highly successful IPO in Copenhagen that valued the company at nearly $1 billion – offers a case study in bad risk management…
More Legal Woes for Bankrupt OW Bunker
A group of 27 Danish institutional investors say they will launch a legal action against the former management of OW Bunker, a shipping company that filed for bankruptcy last year just six months after listing, and the private equity firm that brought the company to market. The Danish investors including two of the largest pension funds in Denmark, ATP and PFA, with assets of more than $165 billion have sued OW Bunker for 800 million Danish crowns ($120 million). The first case is against OW Bunker, its management and its owner, private-equity company Altor Funds.
Wikborg Rein Bolsters London Team
International law firm Wikborg Rein has further strengthened its leading presence in the shipping and offshore and onshore construction sectors with the appointment of three key senior hires to its London offices. Nick Shepherd has joined as a partner from Ince & Co, where he was most recently the head of that firm’s office in Piraeus, Greece. According to Wikborg Rein, Shepherd has a reputation as an 'owner's lawyer' for the Greek shipping market, where he is the first-choice lawyer for a number of the largest shipping groups…
Three Senior Appointments at Wikborg Rein, London
International law firm Wikborg Rein has further strengthened its leading presence in the shipping and offshore and onshore construction sectors with the appointment of three key senior hires to its London offices. Nick Shepherd has joined as a partner from Ince & Co, where he was most recently the head of that firm’s office in Piraeus, Greece. Nick has a market-leading reputation as an 'owner's lawyer' for the Greek shipping market, where he is the first-choice lawyer for a number of the largest shipping groups…
Standard Bunker Contract Review Begins
Three of the world’s largest bunker suppliers, including World Fuel Supplies and Dan Bunkering, have joined a team of industry experts to review BIMCO’s standard bunker contract – BIMCO Terms 2015. Shipowners will be represented by Denmark-based J Lauritzen and Norden. Legal and P&I input comes from Clyde & Co and the North of England P&I Club. The initiative is supported by the International Bunker Industry Association (IBIA) who will have a representative on the team. BIMCO…
OW Bunker Files for Bankruptcy
The world's largest ship fuel supplier OW Bunker said it would file for bankruptcy as soon as possible to the probate court in Aalborg in the northern part of Denmark. OW Bunker said on Thursday it has discovered fraud by senior employees in its Singapore-based subsidiary. "As a result of the internal investigation, it has been decided to report two key employees in the Singapore-based subsidiary Dynamic Oil Trading," the company said in a statement. (Reporting by Ole Mikkelsen; editing by Jane Baird)
Fuel Scandal Sends Traders Scrambling, Investors Eye Lawsuits
Traders and shipping companies scrambled to source fuel and take over supply contracts on Friday after Danish marine fuel supplier OW Bunker said a suspected fraud at its Singapore subsidiary had pushed it to the brink of bankruptcy. The alleged fraud at Singapore-based subsidiary Dynamic Oil Trading is potentially one of the biggest financial market scandals to hit the city state since 2004, when China Aviation Oil (Singapore) ran up oil futures losses of $550 million. Some institutional and individual investors in Denmark said they were considering taking legal action against the firm.
IBIA Offers Industry Support in Wake of OW Bunker Collapse
The International Bunker Industry Association (IBIA) has announced a series of measures to support companies and individuals impacted by last week’s collapse of OW Bunker. In Singapore, IBIA will be taking part in dialogue sessions led by the Maritime & Port Authority of Singapore (MPA) to ensure continuing smooth bunker operations. IBIA stands ready to offer this service to other companies potentially impacted in European ports. The association is also offering professional career support services to those individuals who have lost their jobs.
OW Bunker Bankruptcy has ‘Limited Impact’ on Monjasa
Though OW Bunker’s collapse has varyingly affected many companies around the globe, Danish bunker fuel provider Monjasa A/S said in a statement that the news holds an “insignificant commercial impact” for its business as the company has had only limited financial exposure towards OW Bunker. “For Monjasa, the events have only very limited commercial effect. In our view, the worldwide bunker market should not experience any long-term problems absorbing the demand . . . We have experienced a slight increase in number of inquiries and orders…
New Company Takes Over OW Tanker
OW Tanker, a unit of bankrupt OW Bunker and owner of its marine fuel supply ships, has been taken over by a newly-created company, the fleet manager told Reuters on Wednesday. Henrik Pedersen said the takeover by Alba Tanker ApS, which has the trustees of the bankrupt company on its board, is part of the process of securing assets for the estate. Denmark's OW Bunker had been the largest marine fuel supplier in the world. "We are not a very big part of the company," Pedersen said by telephone. "We're the ship-owning part of OW Bunker and Trading.
Mercuria Expanding with ex-OW Bunker Staff
Swiss trading house Mercuria has moved to become a significant player in the marine fuel market by hiring a team of close to 40 former employees from the once-largest supplier, traders and sources close to the matter said on Tuesday. The bankruptcy of Denmark's OW Bunker, which had controlled around 7 percent of the global shipping fuel market and employed more than 600 people, has given Mercuria an opportunity to beef up its business shortly after it acquired the physical commodities unit of JPMorgan Chase & Co.
New Senior Bunker Trader with Dan-Bunkering
Dan-Bunkering (Middle East) DMCC has announced that yet another former OW Bunker employee has joined the Dan-Bunkering Group. Effective from 1st December Kurosh Khonsari joined Dan-Bunkering’s office in Dubai as Senior Bunker Trader. Kurosh who is of Iranian origin comes from a similar position in OW Bunker and has an impressive and international career in the bunker industry behind him. “I note with great satisfaction and deep respect that Kurosh has decided to continue his future career with Dan-Bunkering”…
Overtonnage, Regulations Bruise Shippers' Confidence
Overall confidence levels in the shipping industry fell during the three months to November 2014 to their lowest level for two years, according to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens. The survey revealed increasing concern about the high cost of achieving compliance with new regulations, and ongoing doubts about overtonnaging. But it was not all bad news, with charterers, managers and brokers all more confident than they were three months previously of making a new investment over the coming year.
Glander International Bunkering Boosts Brazil Presence
Glander International Bunkering's (GIB) Brazil office has enhanced its presence with increased employee numbers and a new location. As of December 17, 2014, Glander International Bunkering Brazil will increase its staff numbers from 3 to 11 employees, also changing its office location in the heart of Rio de Janeiro, Leblon. GIB’s presence and market share of South America will be supported by a new talented team. The new team will positively service customer’s requirements in the region from our new office in Brazil.
Denmark Arrests Former OW Bunker Manager
Denmark has arrested a former manager of collapsed ship fuel supplier OW Bunker and intends to hand him to Italy, where he is suspected of fraud, the Danish public prosecutor said on Thursday. A statement from the prosecutor's office did not disclose any details. Danish daily Berlingske reported earlier this week that the arrested person and five others had cheated the Italian navy out of 7 million euros ($8.6 million) for fictitious bunker fuel delivered from a non-existent vessel.
Moore Stephens: Shipping Must Adopt Can-do Attitude
International accountant and shipping adviser Moore Stephens says shipping needs to adopt a can-do attitude in order to successfully meet the challenges which are likely to come its way in 2015. Moore Stephens shipping partner Richard Greiner says, “Shipping confidence started 2014 on a six-year high and ended it on a two-year low. It is difficult to predict with any certainty what the next 12 months will bring, beyond further uncertainty. To paraphrase an old adage, shipping goes into 2015 needing to accept the things it cannot change…
Bunker Holding Hires Hughes in Group Operations
As of January 1, 2015, Bunker Holding, the parent company of a worldwide group of bunker companies, has employed Kristian Kent Hughes as Manager – Operations & Projects. He will work closely with and report to Søren Høll, Group COO of Bunker Holding. In addition to daily operations, Kristian will be responsible for managing, prioritising and developing projects across the group independently and in cooperation with Søren Høll. Kristian’s primary place of work will be Bunker Holding’s head office in Middelfart, Denmark.
Glander International Bunkering Continues Dubai Office Hiring
Glander International Bunkering continued a series of hires in its Dubai office today, announcing the hiring of Kristian Korsgaard Pedersen as the office's Senior Bunker/Lubricant Trader and Team Leader. On Monday, the company announced the hiring of Luis Cañizales as an office Bunker and Lubricant Trader. Pedersen, originally from Denmark, has worked in the bunker industry for over 16 years. He was the Sales Manager at O.W. Bunker Middle East DMCC when the firm declared bankruptcy in November of 2014 (a bankruptcy now under investigation by Denmark's largest pension fund).
Adrian Tolson Launches 20|20 Marine Energy
A new consultancy established by well known industry veteran and leading marine energy expert Adrian Tolson, was launched Tuesday. A new consultancy, 20|20 Marine Energy, was launched to help companies create and implement strategies for purchasing and selling marine energy, as well as supporting the development of bunkering infrastructure. In a changing market of increasing risk and complexity, 20|20 works with ship owners, operators and financial institutions on the buy-side…
Marine Fuel Quality Improving -IBIA
The International Bunker Industry Association (IBIA) noted an improvement in bunker quality from across the marine fuels supply chain thanks in part to a campaign launched by the association. Addressing an audience of more than 1,000 marine fuel buyers, suppliers and traders at the association’s annual dinner in London last night, IBIA Chairman Jens Maul Jorgensen said that the early results for 2015 show that there has been a marked improvement in bunker fuel quality with 8% of samples found to be off-spec compared with 10% in 2014.