In terms of macroeconomic developments, the economic status in the Caribbean Region is largely driven by the global economy as well as developments in the US. Going forward, tourism is expected to remain as a key economic driver for the Caribbean region. Furthermore, the US is likely to continue to play a major influence. The bunkering industry in the Caribbean has been developing steadily for decades due to its popularity as a cruise ship destination and transshipments hub for east-west and north south cargo shipping routes. The enlargement of the Panama Canal is further expected to change competition dynamics between the region’s bunkering centers as a result of increase in shipping traffic and larger vessels. The shipping industry is the major demand driver for bunkering. It should be noted that both container liner and cruise sector as the two largest demand segments are concentrated. So in TL Blue Oceans LTD. our goals would be that our decision factors by ship operators with respect to bunkering operations and critical concerns can be summarized by 8 attributes: • 1 Bunker quality • 2 Market transparency (corruption free) • 3 Bunker price competitiveness • 4 Reliability and punctuality of bunker suppliers • 5 Bunkering facilities and services (adequacy and efficacy) • 6 Availability of all fuel grades including low-sulphur bunkers • 7 Location of port • 8 Government policies (e.g. quality control) and incentives
Reference:
Panama Canal Background: https://www.pancanal.com/eng/op/transit-stats/2016/Table08.pdf IBISWorld. “Bunkering Services and Supply and Logistic World in America, Europe and China” May 11Th, 2013 Ivan Png “Competitive Markets, Managerial Economics – 5th Edition. New York. May 2015. Pp. 19 – 118 Bunkering Report obtained at: https://www.bunkerspot.com/images/mags/mag_pdfs/BS_v6i2_aprmay_09.pdf Castaño, Oscar Daniel. La Prensa Panama. El Futuro del Canal con la Expansión, author says. July 12th, 2016. Obtained at: http://impresa.prensa.com/sociales/Empresarios-estrategia-Canal Supply services industry: https://www.cepsa.com/stfls/CepsaCom/Coorp_Comp/Informe%20Anual%20CEPSA/CEPSA-Annual-Report-2012.pdf About my competitors: http://www.miic.gov.jm/sites/default/files/pdfs/FINAL%20Bunkering%20Hub%20Report%2130331.pdf Statistics about the Panama Canal: https://www.pancanal.com/eng/op/transit-stats/ Hughes, Sophie. Panama Canal in Numbers. Obtained at: http://www.telegraph.co.uk/travel/destinations/central-america/panama/articles/Panama-Canal-in-numbers/ . June 6th, 2016