03 Improve Cash Flow
Challenge
ShippingCo, a major commercial shipping line, is looking to make a significant multi-million $ investment into its digital shipment tracking systems. The financial projections predict a potentially damaging issue with cash flow. ShippingCo is looking for innovative ways to enable the execution of its strategic plan whilst addressing the cash concerns.
Solution
A significant proportion of ShippingCo’s cash is spent on bunker-fuel. Despite a reduction in fuel prices, the company remains under intense pressure regarding its liquidity.
FuelCo, which is a global supplier of bunker fuel and already a member of the ECO Capacity Exchange, provides a small percentage of ShippingCo’s fuel needs and wishes to grow its market share. An introduction is made between the two parties by the ECE Client Success Team. FuelCo offers to take payments in ECO for 10% of the value of the contract over a 12-month period.
Outcome
This arrangement sufficiently reduces ShippingCo’s cash-outflow and covers the full cost of implementing its new digital shipment tracking systems. FuelCo has also created a source of competitive advantage by being the sole supplier of bunker-fuel able and willing to receive payment in ECO.