Commodity trading companies are increasingly recognizing that in an era of increased data transparency, they must invest in infrastructure and supply chain assets to gain competitive advantage. As noted in a recent Bloomberg article:
“The most valuable commodity out there is information, and the most useful information is the proprietary, critical information that you obtain from your own supply chain… You have to have skin in the game. You have to have access to assets, whether it’s infrastructure, terminals, vessels or refineries.”
In the latter paragraphs of the article (which can be found here), Mercuria and Vitol both express an interest in investing in assets that will benefit from the adoption of MARPOL Annex VI global maritime emissions regulations that will be rolled out in 2020.
Mercator has identified a number of strategic opportunities for clients looking to leverage MARPOL regulations to their gain. We have similarly worked with clients concerned with minimizing exposure to potential downsides associated with these regulations.