The energy trading risk management systems specialist worked with Torm on the development of the app, which will enable operators to map their fleets and determine the best routes according to sea and port conditions to achieve the lowest prices for the required fuel.
According to industry estimates, IMO 2020 could result in a $60 billion hike on shipping’s fuel bill. As such, Inatech, a Glencore subsidiary, has created a toolkit which leverages bunker alerts and pricing data from S&P Global Platts. Torm, which also provided input on the design of the app, which builds on Inatech’s Shiptech platform, is one of the technology’s first clients.
Commenting on the introduction of the Smart Trader app, Inatech CEO Jean-Hervé Jenn said: ‘Improved technology is vital because the new IMO rules will not only increase costs but could also trigger unprecedented volatility in prices as a widening array of choice between the various fuel oil types skews supply and demand dynamics in what is still a relatively opaque market.
‘That motivates our push to broaden the available options for bunker buyers, who will suddenly be immersed in an infinitely more complex market in less than a year’s time.”
Smart Trader enables companies to track their vessels on an integrated system that manages fuel levels on board and updates with live prices and news for supply en route. The interactive platform displays which ships in the fleet are running low on fuel and whether their fuel type is compatible with availability and optimal pricing in the direction of travel and – if it’s not - what would be the most optimal rerouting.
According to Inatech, potential suppliers are checked for quality and credit references to control counterparty risk.
Using S&P Global Platts data, the app provides information on ULSFO, LSFO, IFO, MGO and MDO grades at more than 350 ports worldwide, along with regional indices, 28-day spreads, and moving averages.
Lesley Bankes-Hughes discussed vessel fuel procurement strategies with Alok Sharma, Senior VP at Inatech, in the October/November 2018 issue of Bunkerspot magazine.