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BLK – The Raw Materials and Commodity Marketplace

Source cheaper, global, direct.

BLK was born as the digital marketplace dedicated to commodities and raw materials.

It was born from the awareness that the digitalization of commodity trading is not a question of if, but of when.

It was born to allow anyone, regardless of the size of their company, to buy directly from producers, wherever they are, paying the real value of the goods, thanks to a transparent and digital market.

Our mission is to allow anyone to purchase the raw materials they need for their business, with a simple click. It is inevitable, we saw it happen in the late 1990s with the disruption of retail at the hands of those who are now e-commerce giants.

It will happen again, for B2B purchases. It is already happening. BLK is its driving force.

Marketplace 

Buy raw materials for your business from the comfort of your home

The platform that allows anyone to buy securely, in a few simple clicks. It allows you to find local and global suppliers, compare prices, specifications, delivery terms. And to buy as today we are all used to doing, online, from the comfort of home.

Thanks to the automatic invoicing and order generation as well as integrated accounting, today BLK saves 1000s man hours per year in administration tasks.

Micro and small businesses, the target market of our marketplace, have halved their procurement costs (on average a reduction from 40% to 60%).

Blkcommodities.com is the home of over $1B worth of trade, and active across 7 main categories.

  1. Agricultural
  2. Chemicals
  3. Energy
  4. Construction
  5. Main Bulks
  6. Industrial
  7. Metals

Our Marketplace division has been growing on a quarterly rate of 270%+ and, to date, suppliers on our marketplace trade $332M-worth of chemical commodities; $242M of metal products (including grade A steel, stainless steel and high-strength alloys); $238M of Agriculturalgoods and $219M of energy products. Find out more about our marketplace’s key indicators here.

Supply Chain

blk supply chain
Outsource your supply chain. Reduce fixed costs. Cut variable costs.

At BLK we put at your disposal our expertise in supply chain management, international negotiations and project management to make our partners’ operations leaner, more effective and more profitable.

We pool the volume of multiple businesses with that of buyers across the UK and Italy, using the aggregated purchasing power to negotiate better deals with suppliers globally.

We scout, vet and negotiate directly with manufacturers on behalf of our partners, organizing logistics and providing a complete supply chain management solution to keep fixed costs as lean as possible, whilst reducing variable costs.

In this case, we address corporate and medium-sized enterprises, helping them to streamline their procurement processes, automate order generation, invoicing and reporting, with the aim of increasing their competitiveness on foreign markets.

Decarbonizaiton

decarbonisation
Reduce the environmental impact of your supply chain and earn with carbon credits.

We help our partners reduce their environmental impact by purchasing from local suppliers or by aggregating volume with that of other companies. In addition, we organize logistics in the most environmentally friendly way possible, reducing the overall emissions of our customers’ supply chain.

Companies that rely on us can also earn from this emission cut: their lower environmental impact is rewarded with Carbon Credits, which can be exchanged on the European Environmental Exchange.

With BLK, going green means generating a whole new revenue stream!

Rating

BLK Rate
Quality – Cost – Service Delivery are the foundations of our criteria

BLK developed a proprietary (patent pending) rating system to assess the key metrics of our customers and suppliers.

Quality – Cost – Service Delivery are the foundations of our criteria.

We help companies understand their positioning in the market based on these three areas and support them in improving their positioning through a detailed guide that translates into operational and actionable advice.

In addition, our rating provides further confirmation of the standing of suppliers, allowing those who buy to base their decisions on relevant parameters and on the awareness of having available commercial partners previously evaluated with a thorough level of scrutiny which goes beyond the mere financial report.

Investor Relations

Headquartered in Glasgow, BLK has been selected as one of the UK’s top 30 tech start-ups.

After a seed round concluded in January 2021, we are supported by Italy’s #1 accelerator and one of Europe’s top venture builders: Enry’s Island. We have a 10-strong team distributed between the UK, Italy and the United Arab Emirates.

Team

Led by founders from shipping, commodity trading, project management and banking, the BLK team is structured in four units: Product, Market, Fundraising and Corporate, each in charge of specific tasks and well positioned to support BLK’s rapid growth.

Product: designers and developers

Market: one-to-one sales, one-to-many sales and digital PR

Fundraising: investor relations

Corporate: HR, legal, supply chain

Discover More

To learn more about how we could build a strategic partnership, both industrial and fundraising, contact:

Gabriele Dadò – Founder & CEO gabriele.dado@blk-global.com +44 7757630638

Digitalisation of Commodity Trading: How BLK is Fueling a Global Trade Revolution

Gabriele Dado – CEO & Founder – BLK Global PLC

Digitalisation of commodity trading is here. BLK is the driving force behind it.

When people think of the global economy, they often picture stock markets or finished consumer tech. But the real engine of the world isn’t silicon chips, it’s ores, rocks, and raw earth. It’s the materials that build our cities, feed our populations, and even create the cosmetics on our shelves.

At BLK, we are witnessing – and driving – a worldwide explosion in the trade of these essential commodities. But we aren’t just watching the volume grow; we are actively rewiring how these materials move across the planet.

From the Pit to the Port: A Diverse Portfolio

The scope of modern trade is massive, over $4.5 trillion for raw materials alone, jumping to nearly $23 trillion for semi-finished products like steel components and construction materials. BLK is active in the heavy-hitting sectors that matter most. We are seeing unprecedented movement in:

  • Ores & Rocks: The backbone of industry, moving in massive bulk volumes.
  • Construction Materials: Cement, timber, and steel to support infrastructure booms.
  • Agricultural Commodities: Feeding nations with grains, rice, and soy.
  • Nuts & Specialised Foods: High-value goods like cashews and cocoa, connecting directly to retail markets.
  • Cosmetics Primary Materials: Essential oils, shea butter and chemical bases for the beauty industry.

Connecting the Triangle: Asia, Oceania, Africa, Europe

The old map of trade was full of dead ends and middlemen. We have redrawn it. BLK is now deeply entrenched in the resource-rich powerhouses of IndiaAustralia and Africa.

These aren’t just extraction points; they are vibrant hubs of production. Whether it’s bauxite from the red earth of Australia or the mines of Guinea, agricultural yield from the plains of India, or raw cosmetic ingredients from East Africa, we are sourcing directly from the ground floor.

Powering the Demand: Japan, Korea, Europe

Where is it all going? The demand is insatiable. We are serving major industrial and consumer customers in JapanKorea and across Europe.

These advanced economies need reliable, transparent access to raw materials without the friction of traditional trading desks. They need high-grade ores for their factories and premium agricultural products for their consumers. By bridging the gap between a mine in Africa or a farm in India and a factory in Osaka or Hamburg, we are compressing the supply chain.

The Digital Detonator

Why is this explosion happening now? Because digitalisation has finally arrived.

In the past, buying these materials involved chains of brokers, opaque pricing, and slow paperwork. BLK has democratised this process. We’ve built a digital infrastructure that allows a construction firm in Europe to procure materials from India as easily as buying a book online.

We aren’t just moving commodities; we are unleashing the potential of global markets by making trade faster, cheaper, and direct.

The explosion is here, and BLK is lighting the fuse.

The Next Chapter: Democratising Ownership

BLK features on Nasdaq Tower in NYC Times Square

This revolution isn’t just about moving goods; it’s about breaking down barriers.

That is why BLK has officially transitioned to a Public Limited Company (BLK Global PLC), marking the final step before our upcoming stock market debut.

BLK is preparing for its public debut. We have spent years democratising access to global trade- giving the “little guy” the same purchasing power as industrial giants – and now, we are democratising our ownership.

Following a record-breaking year with revenue surging 360% and over $11 billion in stock listed on our marketplace, going public is our declaration of intent.

It provides the capital to scale faster, the currency to acquire new capabilities, and the transparency to build even deeper trust with our partners in India, Africa, and beyond.

Stay tuned to learn more about BLK’s future development!

A New Era Begins: Why BLK Global PLC is Going Public

BLK is now a public company

Today marks a defining moment in our history.

We are incredibly proud to announce that BLK has officially transitioned from a private entity to a Public Limited Company, now operating as BLK Global PLC.

This transformation is more than just a change in legal status: it is the ultimate expression of our DNA.

After a record-breaking year, with our revenue surging 360%, marketplace transaction volume increasing by 2,355% and total stock for sale on the marketplace reaching $11.7 billion, we are now well positioned to take our next step towards our public debut.

Democratising Ownership, Democratising Trade

At BLK, our mission has always been simple: to enable trade without barriers. We believe that access to commerce and opportunity should be open to everyone, not just a select few.

It makes perfect sense, then, that our ownership structure reflects that same philosophy. By entering public ownership, we are tearing down the barriers to investing in our own success. We are opening the doors for our community, our partners, and the public to own a stake in the very future we are building together.

Why We Are Taking This Leap

Going public is a strategic move designed to accelerate our vision. Here is how this transition powers our next phase of growth:

  • Visibility & Trust on a Global Stage: Becoming a public company immediately elevates our standing in the international market. This increased public profile allows us to build deeper trust with global partners and move faster in seizing new opportunities. It tells the world that BLK is here for the long haul.
  • A Platform for Transparency: We believe that sunlight is the best catalyst for growth. By operating in a public forum underpinned by rigorous disclosure and transparency, we can build stronger, faster relationships with a global universe of investors and industrial partners. This, in turn, adds to the fuel we need to drive expansion and deliver on our vision of delivering the online spot market.
  • Currency for Growth: A public listing gives BLK a powerful new currency. We intend to leverage our stock to make strategic acquisitions of synergistic enterprises, whether that means integrating new technologies, expanding our fulfilment capabilities or entering new markets and verticals. We are not just growing organically.
  • Incentivising Our Team: Our people are the gears powering of our success. A public structure allows us to better reward and incentivise the team members who work tirelessly to bring our vision to life, aligning their success directly with the company’s performance.

For Our Future Investors

We are building awareness across a diverse and international audience because we want our investor base to look like our customer base: global, ambitious, and forward-thinking.

While today we celebrate our status as a Public Company, the next phase is the one you are waiting for: The Listing.

With a seasoned executive team rooted in entrepreneurship, shipping & trading, investment banking and finance from firms like Morgan Stanley, Lloyd’s, EY, McKinsey and Salesforce, alongside a strong advisory board with multi-decade experience in e-commerce, shipping, commodity trading and PLC governance we are well geared to take on this new challenge.

We are currently finalising the details for our stock exchange listing. We are entering this phase with strong momentum and a “bullish” outlook on what lies ahead.

Watch This Space

We will be releasing specific details regarding our listing date, ISIN and ticker symbol very soon.

BLK is now a public company. To stay updated on our public debut journey and financial news, please visit our investor relations section or follow our official social media channels.

The bell is about to ring. You better be ready.

Investor Relations

E: investors@blk-global.com

M: +44 7757630638

BLK Shines on Nasdaq Tower in Times Square Celebrating £50M Funding Milestone

On 4th March 2025, BLK made headlines worldwide when Nasdaq featured the brand on its iconic tower in Times Square, New York City. This monumental moment came hot on the heels of BLK’s impressive £50 million funding round—a major milestone that underscores the company’s rapid growth and appeal to global investors.

Bolstered by its recent success, BLK is now gearing up for a highly anticipated IPO later in 2025. This strategic move represents a natural progression for the company, which has seen a surge in demand for its peer-to-peer marketplace and demonstrates the industry’s heightened confidence in BLK’s potential for long-term market leadership.

The bustling energy of Times Square provided the perfect backdrop for Nasdaq’s recognition of BLK, highlighting the brand’s unwavering commitment to excellence and democratisation of trade. Displayed high above the crowds, BLK’s towering presence captured the attention of onlookers and celebrated a new era of potential and momentum.

The £50 million investment has paved the way for BLK to expand its global footprint, develop cutting-edge products, and strengthen its market leadership. As more investors set their sights on emerging industry leaders, BLK’s feature on the Nasdaq tower symbolizes the growing belief in the brand’s long-term impact.

By showcasing BLK on one of the world’s most recognizable digital billboards, Nasdaq not only acknowledged the company’s impressive achievements but also spotlighted its promising future. This triumphant moment in Times Square is a testament to BLK’s vision, determination, and the growing confidence of stakeholders in the brand’s forward-thinking strategies.

Thank you Nasdaq for this unplanned and yet very welcome feature!

Read more about BLK’s recent funding round here.

BLK Secures £50 Million Investment from Nimbus Capital, Signalling Strong Growth Trajectory and 2025 IPO 

Glasgow, UK – February 27, 2025 – BLK, the UK’s leading online platform revolutionizing the commodities and raw materials trading market, today announced a £50 million equity round from Nimbus Capital, a Panama based investment group, operating globally with a focus on emerging companies and industries with strong growth potential. 

BLK secures £50 million from Nimbus Capital

This investment significantly boosts BLK’s growth plans and paves the way for a highly anticipated Initial Public Offering (IPO) in 2025, presenting a compelling investment opportunity.

BLK is rapidly disrupting the traditionally offline and inefficient commodities market, offering a seamless and transparent digital platform that connects buyers and sellers of a wide range of raw materials, without intermediaries. This horizontal commodity marketplace model, alongside its direct physical fulfilment arm, addresses a multi-trillion dollar market opportunity ripe for disruption, offering significant potential for growth and investor returns.

“We are delighted to welcome Nimbus as a strategic partner. The shared vision in the disruptive role of our technology, supported by the triple-digit growth BLK underwent over the past year, paves the way for a significant expansion of our operations” said Lalu John, BLK Chief Exec. 

BLK Growth Chart


“This investment from Nimbus Capital validates our vision and strengthens our position for rapid scaling and ultimately, a successful public listing. Digitalization of the raw material and upstream supply chain is about to transform the market in the same way that it did retail 20 years ago – presenting an unparalleled opportunity.” – commented Gabriele Dadò, BLK’s founder.

Nimbus Capital, known for its strategic investments in high-growth, disruptive companies, recognizes the immense potential of BLK’s platform and its ability to capture a significant share of the commodities market. “Nimbus Capital is proud to back BLK as they transform the $20 trillion global commodities market through digital innovation. Following rigorous due diligence, our investment reflects confidence in their leadership, market strategy, and rapid growth. With AI and blockchain integration, global expansion, and strategic maritime asset positioning in a $14 trillion trade ecosystem, BLK is poised for significant scale. Panama’s trade advantages further amplify their reach, positioning them for a successful IPO and strong investor returns,” said Robert Baker, Managing Partner at Nimbus Capital.

The £50 million investment will be strategically deployed to accelerate BLK’s growth trajectory, including:

  • Technology Enhancement: Further development of the platform’s capabilities, including the introduction of AI and blockchain to secure transactions and commodities’ chain of custody; enhancing user experience, security and attracting more users.
  • Market Expansion: Scaling operations globally to capture a larger share of the international commodities market as well as shipping operations to support the increasing trading volume on the marketplace blkcommodities.com.
  • Asset Acquisition: Exploiting the current low in the maritime market to acquire vessels at low cost, to support the increased shipping demand whilst improving profitability further.

This funding round, coupled with the planned 2025 public listing, offers investors a rare opportunity to participate in the growth of a company poised to become a global leader in the digitalization of commodity trading. BLK’s management team has a proven track record of success and is committed to delivering exceptional value to its shareholders.

About BLK:

BLK is the world’s largest dedicated commodity and raw materials marketplace. Its peer-to-peer approach allows businesses to buy directly from producers, removing the multiple layers of middle-men to bring down procurement costs and enhance profit margins for both suppliers and buyers. 

The company is experiencing a strong growth trajectory, with over $6 billion of stock for sale on the marketplace and a revenue growth of 101% YoY.

About Nimbus Capital:

Nimbus Capital is a private investment group specializing in cross-border transactions, providing flexible funding solutions to growing businesses worldwide. Led by experienced managers with a track record of over 50 transactions across 30+ countries and backed by In On Capital, a boutique wealth management firm with USD $1.2 billion in AUM, Nimbus combines industry expertise with a global outlook to drive impactful investments.

For more information:

https://blkcommodities.com

https://nimbuscapital.io

Contact:

BLK

Investor Relations

investors@blk-global.com

+44 7436534955

Nimbus Capital

Investor Relations

info@nimbuscapital.io

+507 388-3701

Revolutionizing Commodity Trading: The Digital Opportunity

The global commodity trading market, a multi-trillion-dollar industry, remains one of the last major sectors operating predominantly offline. Manual processes, opaque pricing structures, and limited market access create inefficiencies that cost traders time and money. However, a wave of digital transformation in commodity trading is on the horizon, promising to revolutionize how commodities and raw materials are bought and sold.

The Untapped Potential of Digitalization

Digital commodity trading opens doors to enhanced transparency, streamlined operations, and broader market access. By shifting away from outdated systems, traders can:

  • Leverage real-time market data
  • Automate transactions
  • Reduce operational risks
  • Standardize contractual terms
  • Standardise & due diligence on all players

This evolution benefits not only large corporations but also empowers small and medium-sized enterprises (SMEs) to participate more competitively in global trade.

BLK: The Amazon of Commodities

Leading this digital revolution in commodity trading is BLK Commodities, often dubbed the “Amazon of commodities and raw materials.” BLK has built a robust, user-friendly online commodity trading platform that connects buyers and sellers worldwide, offering unparalleled access to a wide range of commodities.

Key features of BLK’s platform:

  • Real-time pricing and market data
  • Secure payment gateways
  • End-to-end logistics support
  • Proprietary vetting for all users
  • Standardized contractual terms for raw material purchases

Explosive Growth and Market Expansion

BLK’s impact on the market has been extraordinary. Over the past three years, the company has doubled its revenue each year consecutively, a testament to its disruptive business model and the growing demand for digital solutions in commodity trading.

BLK’s strategic expansion into high-potential markets like India, Japan, and Australia has further fueled growth, tapping into some of the world’s largest and most dynamic commodity markets. These regions offer immense opportunities due to their robust industrial sectors and increasing demand for streamlined trading solutions.

Why Now Is the Time to Go Digital

The timing for digitalising commodity trading couldn’t be better. Global supply chain disruptions, rising commodity prices, and the growing demand for transparency have accelerated the need for online trading platforms.

Key benefits of digitalizing commodity trading:

  • Efficiency Gains: Automating manual processes like invoicing and purchase order generation reduces time and costs – saving SMEs between 1,000 and 10,000 hours per year on procurement.
  • Market Transparency: Real-time data ensures fair pricing and better decision-making.
  • Global Reach: Digital platforms break down geographical barriers, opening access to new markets without the need for businesses to establish a physical office presence.

A Prime Investment Opportunity

For investors, BLK Commodities presents a rare opportunity to be part of a disruptive and rapidly expanding company in the digital commodity trading space. With consistent year-over-year revenue growth and successful global market expansion, BLK is poised for continued success.

Why invest in BLK Commodities?

  • Proven Growth: Over 100% annual revenue growth for three consecutive years.
  • Market Leadership: Positioned as the go-to horizontal online commodity marketplace.
  • Scalable Model: Strong potential for continued global expansion. Shipping operations supported by a digital, online scalable framework.
  • Innovative Solutions: Leveraging technology to disrupt traditional commodity trading – transforming a multi-trillion dollar market.
  • History Repeating Itself: we have seen it happen with retail in the early 2000’s. Now is the time for upstream supply chain to undergo its digital transformation.

Conclusion

The commodity trading market is on the brink of a significant transformation. As more industry players embrace digitalisation, platforms like BLK are leading the charge, unlocking new opportunities and setting new standards for efficiency and transparency.

With its rapid growth and strategic market expansion, BLK is not just digitalising commodity trading—it’s revolutionizing it. For traders and investors, now is the perfect time to leverage this digital wave.

Ready to invest in the future of commodity trading?

Discover how investing in BLK Commodities can offer substantial growth opportunities.


BLK Shipping Awarded Green Shipping Company of the Year 2025

Recognition highlights BLK’s commitment to sustainable shipping and market leadership

Glasgow, February 19, 2025 — BLK Shipping has been named Green Shipping Company of the Year 2025 by SME News, a leading UK-based publication that recognises excellence and innovation in business. This prestigious award celebrates BLK’s dedication to providing eco-friendly shipping solutions within the global commodities market.

BLK Shipping, the logistics arm of the BLK Commodities Group, plays a crucial role in fulfilling orders from the company’s rapidly growing marketplace. By leveraging a fleet of efficient, low-emission vessels, BLK has consistently minimized its environmental impact while ensuring timely delivery of millions of tons of raw materials and commodities each year.

“We are proud of this recognition by one of the UK’s leading media outlets,” said Lalu John, CEO of BLK Commodities. “It is a testament to BLK’s strong growth and our ongoing commitment to sustainability, especially as we gear up to ship an additional 1.5 million tons of cargo in 2025. Our green fulfillment services not only benefit our customers but also help reduce the carbon footprint of global shipping.”

The Green Shipping Company of the Year award highlights BLK’s efforts to adopt cleaner technologies, optimise shipping routes, and invest in sustainable logistics practices. As global demand for greener supply chains increases, BLK continues to set industry benchmarks in both efficiency and environmental responsibility.

With its marketplace now hosting over $6.5 billion worth of commodities, BLK is proud to serve a diverse network of buyers and sellers, offering them dedicated and eco-conscious fulfilment solutions that align with modern sustainability goals.

About BLK Commodities:
BLK Commodities is a leading marketplace for buying and selling raw materials, spanning sectors like agriculture, metals, energy, and chemicals. With a focus on efficient logistics and green shipping, BLK connects global suppliers and buyers through a streamlined, sustainable platform.

BLK Shipping – Learn About the Latest Shipping Rates

17 OCTOBER 2021

Welcome to BLK Shipping, our regular update from the shipping market. In this issue, we’ll be covering:

  • Wet Cargo
  • Dry Cargo
  • Containers
  • Gas

Subscribe to our newsletter to stay up-to-date with our Shipping Weekly and follow us on Facebook and LinkedIn to never miss an update.

Wet Cargo

The increasing price of crude oil has been driving the tankers’ charter rates up, although the availability of VLCCs meant a general slowdown for this segment.

VLCC – Very Large Crude Carriers saw a decline over the past week, primarily due to the oversupply of tonnage in the market. Outlook: Stable

Suezmax – strong rally Sith over 1800% increase WoW for suezmaxes, with a very strong performance, especially in the Mediterranean. Outlook: Positive

Aframax – afra rates more gained ground, with a general strengthening across most routes. Outlook: Positive

Dirty Products – Apart from the usual busy market in the Med and Black Sea, demand remained weak in all other regions, causing rates to soften. Outlook: Stable.

Clean Products – Charter rates weakened across the board with some routes losing over 50% WoW. The MR market remained relatively oversupplied, and the lack of available cargoes did the rest to cause charter rates to slip by an average of 10% Outlook: Negative

MR – weakening demand did not support the MR rates, which, coupled with the oversupply of carrying capacity in the market, caused rates to fall across the board. Outlook: Negative

LR1 demand for log-range tankers fell in the last few weeks and continues on a downward trend. Outlook: Negative

LR2 LR2 tankers weakened approx. 20% WoW but, on average, remain still strong compared to this summer. Outlook: Stable

Handy Handy earnings weakened too, returning below $3500/day and losing all the ground gained in September Outlook: Stable

Dirty Panamax – Rates softened on most routes, bringing Panamax rates down 22% compared to last month. Outlook: Negative

Dry Cargo

Strong performance for the bulkers on most routes and across all segments, with rates at their highest levels in over 10 years.

Capesize – Capes grew up to 30% in the last week, averaging nearly $73k/day and rates climbing sharply to unchartered heights. Outlook: Positive

Panamax  – Still another good week for the panamaxes, although slightly in decline on the Atlantic and on the routes Indonesia to China. Outlook: Positive

Supramax – Supramaxes lost ground in recent days, after climbing steadily over the course of 2021. The second half of September  saw relatively steady rates, settling on an average of $30k/day Outlook: Stable

Handysize – Handy market still performing very well. After a strong July-August rally, a slow-down in September now it settled on $36k+/day with short voyages routes fetching over $40k/day. Outlook: Stable

Container

Container rates finally found some market resistance, with Neo-panamaxes vessels finding difficult to push much above the $145k/day mark.

Backlogs in major ports are gravely disrupting supply chains, with queues of over 70 container vessels at Long Beach and other major ports in the US, Europe and China.

We are now seeing, as predicted, a decrease in smaller-batches shipments westbound from Asia to Europe, accompanied by a subsequent easing of the TEU rates which now came down on the high $8000s mark.

Outlook: Stable

Gas

Rates for Gas Carriers rallied, driven by the strong demand for gas worldwide and the surge in prices across Europe and North America.

Pressurized and semi-pressurized vessel rates remained constant, whilst the biggest winners appeared to be LNG carriers, with rates now nearing the $85k/day for 160000 m3 vessels.

Outlook: Positive

To learn more about how we can support your business shipping as cheaply and environmentally-friendly as possible, visit us at BLK.

Subscribe to our newsletter to stay up-to-date with our weekly shipping updates.

Did you miss our previous shipping article? Read it now.

Fuel Market Watch

In this article we will look at the crude oil price forecast and its impact on fuel prices. In 2022, EIA expect an average of about $66/b for crude, but traders, believe that oil may break through $100/b, nearing the $120/b by the end of 2022, which paints a grim pictures for fuel-reliant businesses.

Price Composition of Distillate Fuels


The price that final users pay for petrol, diesel, jet fuel and, in general, distillate fuels is governed by the local wholesale fuel price. This are affected by:

  • the global price of crude oil
  • supply and demand for crude
  • world refinery production and capacity
  • currency exchange rate, as refined fuel is sold in USD
  • distribution costs
  • arbitrary gross margin retailers decide to introduce
  • fuel duty charged by the local government (57.95p/l in the UK)
  • VAT/GST/value added tax (20% in the UK)

While some of these stay largely static – such as the fuel duty rate and VAT – others such as the oil price and dollar to local currency exchange rate can be very volatile.

The chart above looks at the pump price of petrol and diesel (top), together with the underlying wholesale prices (bottom) for the United Kingdom.

The ‘Rocket & Feather’ Effect

This is the dynamic according to which fuel prices always appear to rise faster than they come down, i.e. they go up like a rocket but fall like a feather.

Whenever the price of crude (and, in turn, that of wholesale fuels) goes up, retailers see their margins eroded very quickly and therefore have to take immediate action to bring the pump prices up in order to preserve their bottom line.

When crude oil price comes down, however, retailers’ margin suddenly widens and stays higher for as long as they maintain the current pricing level. 

This explains the general reluctance to fall back in line, in order to hold on to their earning as much as possible, before being driven down by the competition and the inevitable law of supply and demand.

How low can fuel prices go?

There is a limit to how low prices can go and this is the fuel tax, depending on each specific country.

Realistically, there is another 10% above the tax that accounts for distribution, from the oilfield to the pump (that is provided that retailers and oil majors give fuel away for free). In the UK, fuel duty is set at 57.95p/l, plus VAT on the total price make up for the vast majority of the price people pay. 

When the price of oil is falling it can also create a perception that pump prices are not reducing as much as they should because the lower the pump prices falls, the greater the percentage of tax.

Look Ahead

Brent prices have risen over the past year as result of steady draws on global oil inventories, which averaged 1.8 million barrels per day (b/d) during the first half of 2021.

From August to October, crude oil price raised 45% and we expect prices to continue to climb during the fourth quarter of 2021.

Brent Crude prices 2021

In 2022, we expect that growth in production from OPEC+, US and other non-OPEC countries will slowly outpace the growth in global oil consumption and contribute to Brent prices declining to an annual average of about $66/b.

In the short term, however, fuel-reliant businesses such as haulers, airlines and costal shipping companies, are exposed to a significant risk, with the price of assets’ OPEX eating into their margin.

Despite the cautious optimism of the EIA, traders believe that the price of crude may break through $100/b, nearing the $120/b by the end of 2022.

In this scenario, however, we need to keep into account that the price of futures is also influenced by a certain “risk factor” (in other words, traders factor in the risk they are going to assume by agreeing to purchase at a specific price at a later date) as well as a certain “margin” they are expecting to make. While the two items may balance each-other out, the upper interval still paints a grim picture for consumers and energy-reliant businesses, which will be called to face uncertain times as we venture into an uncharted territory following the COVID pandemic.

Mitigating the Risk Ahead

Remember to look at the spot market whenever in need for fuels.

Blkcommodites.com is the online spot market, where you can find pre-vetted suppliers from around the world to purchase at be best possible prices, below the institutional markets.

The reason being BLK leverages its expertise in supply chain management and aggregate volume from multiple buyers all over the UK, Italy and the rest of Europe to negotiate ad hoc deals with suppliers, coming 4-5% below the Platts’ price for distillate fuels.

Take immediately advantage of our negotiated $20/ton discount on the Platts NWE FOB or contact us for any specific requirements (e.g. jet fuel, LPG, etc.).

Check-out our negotiated rates for diesel or get in touch and secure your business from fuel prices’ fluctuations leveraging the purchasing power of hundreds of players like you, already purchasing on Blkcommodities.com.

BLK Shipping – Shipping Rates Updates

2 OCTOBER 2021

Welcome to BLK Shipping, our regular update from the shipping market. In this issue, we’ll be covering:

  • Wet Cargo
  • Dry Cargo
  • Containers
  • Gas

Subscribe to our newsletter to stay up-to-date with our Shipping Weekly and follow us on Facebook and LinkedIn to never miss an update.

Wet Cargo

Oversupply of carrying capacity in the market counterbalanced significantly the rising price of oil and the tanker rates kept dropping across the board, with the only exception of VLCCs

Crude Tanker Spot Charter Rates

VLCC – Very Large Crude Carriers were the only vessels with a strong performance, given their direct link to the crude trading. China routes were the busiest with a 3.5 times increase WoW. Outlook: Positive

Suezmax – rates weakened on all routes with the only exception of the Indian Ocean, where Suezmaxes did 9% better than the previous week. Outlook: Stable

Aframax – the Med remained the only area where Aframaxes keep performing, with a general, continued declined that went on throughout September. Outlook: Stable

Crude Tankers Spot Charter Rates

Dirty Products – Relatively busy in the Mediterranean, whilst demand remaining weak in all other regions, with a marked oversupply of carrying capacity. Outlook: Negative.

Clean Products – Charter rates weakened across the board, especially for short voyages. Outlook: Stable 

Product Tanker Spot Cargo Rates

MR – uptake in demand did not have the expected positive effects on MR rates, owing to the oversupply of carrying capacity in the market. Outlook: Negative

LR1 demand for log-range tankers fell in the last few weeks. Outlook: Negative

LR2 continued decline in LR rates would appear to continue on this trend as plenty of vessels remain unemployed. Outlook: Negative

Handy Handy earnings bounced back below $4000/day with a weakened performance on all routes except the Med. Outlook: Stable

Dirty Panamax – Rates continued softening pretty much all routes, with a recorded drops up to 30% WoW. Outlook: Stable

Product Tanker Spot Rates

Dry Cargo

Bulk carrier rates rallied during the past week with a market “on fire”and at its highest since 2008. WoW growth recorded up to 44%, pushing capesize rates beyond $60k/day on some routes.

Bulk Carrier Spot Cargo Earnings per day

Capesize – Capes were the strongest performers in a very active market, characterised by a strong demand and an undersupply of carrying capacity Outlook: Positive

Panamax  – Still another good week for the panamaxes, with an average growth of 5% across the board and a decisively positive outlook. Outlook: Positive

Supramax – Supramaxes remained relatively stable, with recorded variations up to 3% and average rates just north of $31,500/day Outlook: Stable

Handysize – small-sized bulkers did relatively well in the past couple of weeks, with a continual growth now averaging $34k+/day and voyage charters smashing through $40k/day on South-American routes. Outlook: Positive

Bulk Carrier Spot Charter Rates

Container

Container rates finally look like they’re stabilising, with Neo-panamax vessels settling just above the$145k/day mark and container prices on the routes China-Europe recording an inflexion for the first time in months.

Container Vessel Average Earnings per TEU per day

On the raw materials side, however, and especially in chemical commodities, the high freight rates keep impacting prices of goods to the extent that it is equivalent or cheaper to source from European suppliers.

This has led to a decrease in smaller-batch shipments westbound from Asia to Europe which, together with the ongoing raw material shortage and increase in prices of Chinese factory outputs, provoked a subsequent easing of the TEU rates. We should continue seeing this trend toward the end of the year and possibly into 2022.

Outlook: Stable

Container Vessel Charter Rates

Gas

Rates for Gas Carriers declined slightly, with a 18% hit suffered by for 145,000 m3 LNG Carriers.

Gas Tankers Cargo Rates

This was expected as plenty of tonnage was tied-up in dock for ballast water treatment systems installation and is now slowly coming back into the market, increasing overall supply. Outlook: Stable

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