The company expects 2022 to be difficult for the bunker industry. File Image / Pixabay
Marine fuel supplier TFG Marine expects some bunker companies to exit the market next year as consolidation accelerates.
Support from the TFG Trafigura provided an update on the company’s outlook in its annual report on Wednesday.
âThe current bunker market is not sustainable, and 2022 is expected to be a year of accelerated consolidation, with players exiting the market for a variety of reasons, including insufficient access to financial liquidity,â the company said in the statement.
âThe market is also becoming more transparent and more focused on managing the climate transition, with all the costs that this will entail.
The current bunker market is unsustainable.
âFor TFG Marine, this represents a unique opportunity to gain business through innovation and the supply of low-carbon alternative fuels and cooperation with other players, supported by an already strong brand, a situation solid financial structure and a reputation for transparency. “
TFG now considers itself one of the “top three suppliers of physical bunkers,” the statement said, but the company has not disclosed the basis on which it made the claim.
Last month, the company announced its intention to become one of the Singaporeof the top five bunker suppliers by volume, and was on track to deliver 3 million tonnes in the waters of the city-state this year. Last year, the MPA ranked it 16th as TFG was licensed to supply there with april 2020.
In August, TFG announced that it was set to sell 9 million tonnes per year worldwide.
According to the accounts of the TFG shareholder Ocean of gold, the company seems to have made a $ 1 million loss in first three calendar quarters of 2021, compared to a $ 4 million profit over the same period a year earlier.
Trafigura, First line and Golden Ocean have joined forces to launch TFG Marine in end of 2019.