INTERVIEW: Propeller Eyes More Deals & Tech as Rising Bunker Trading Costs Fuels Market Consolidation
Some smaller traders lack the cash for today's prices, and Propeller is ready to plug them in to its trading and back-office engine.
Following its deal to aquire the business of Shipergy, UK-based bunker supplier and trader Propeller Fuels says "it would not be surprised" if it were to close further deals over the next two years, as smaller firms struggle with the cost of staying in the market, CEO Robert Thompson told Ship & Bunker in an interview following the acquisition of the business of Shipergy.
Thompson says high bunker prices are stretching credit lines, and with compliance and credit burdens rising for everyone, the cost of running the engine of a bunker trading business now absorbs a large share of the available margin.
Many smaller companies are now growing weary and short of cash as a result, he says, factors that support a move to more market consolidation.
"Bunker trading is as difficult as its ever been and requires deep pockets and a brave disposition to shoulder the level of risk," he said.
This story was originally published by Ship & Bunker. Read the full story at Ship & Bunker →
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