Visuals for energy content (calorific value) are calculated basis the average calorific values for each supplier and then compared to overall average values for the port in question. The difference in energy content is subsequently expressed in $/mt by calculating the percentage deviation from port average multiplied by the market price input.
Our statistics suggest that it is possible to improve supplier selection significantly in certain ports on the basis of standard deviation calculations for energy content.
One viable explanation is that suppliers of bunker fuels repetitively source products from the same refineries who, in turn, tend to use the same crude oils and feedstocks over time when processing petroleum products – hence the energy DNA also remains more stable over time.
Supplier Benchmarking Example
With the filter settings as shown above supplier ORIM comes out with best energy content of 6.58 $/mt higher than port average. GOLDEN ARROW is worst at 3.45 $/mt below port average.
By clicking on supplier ORIM in bar graph the table at bottom of screen shows test results for stems delivered by this supplier during the period selected. Off-spec parameters are highlighted in red. Short density quantity in right column of table is highlighted in red numbers. The table can be sorted from low to high by clicking the short density column heading. It shows that three stems delivered by ORIM were -28.28 mt, -18.58 mt and -10.14 mt short (ie quantity paid for but not received assuming lab test is the true value). These short deliveries represent a potential loss of $18.95/mt, $16.59/mt and $2.52/mt respectively with the specified BDN quantity and at a market price for VLSFO of $650/mt. Also, ORIM shows several marginally off-spec stems which may or may not be a cause for concern.
One supplier is labelled “UNKNOWN” as datafile from lab is missing supplier info. Furthermore, ROTTERDAM MARINE at $1.88/mt above port average is inconclusive with too few samples in database. Next are SHELL, BP and OILCHART, but all with a few off-spec stems.
The numbers suggest that MAERSK OIL is the best supplier option with an energy content of only $0.31/mt above port average, but with no off-spec or significant short deliveries.