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Fendahl CTRM Technology Benefiting from Strong Demand

It’s been a busy summer for Fendahl CTRM Technology, according to Mr. Henry Thornalley, who I spoke with last week. Fendahl has signed several deals on the last few months including a Canadian mining company, a Vietnamese oil company and also Euronav, the world’s largest crude oil shipper. The company also has a very full pipeline and is expecting to announce several more deals in the coming weeks in areas like dairy, container shipments, and food and beverage, he told me. “We are also seeing a quite a bit of interest in metals where there may be a replacement market developing.”

Fendahl is also seeing plenty of activity in the market these days. Henry reported that before the summer, all of that activity seemed to be in Europe, whereas since summer it is largely in Asia with a few things happening in the USA. “We are seeing the usual interest from smaller businesses largely driven by bank pressure, as well as quite a few larger businesses that are currently using inappropriate solutions or tools and need to adopt more rigorous processes and software,” he told me. ”A lot of companies using manual processes are being pushed to the surface by market conditions and are looking to procure.” IMO2020 is also driving some business as the low Sulphur fuel standard gets closer to adoption some companies are seeing a trade opportunity and preparing for it by buying CTRM software.

According to a recent news announcement, “Euronav’s decision to establish a dedicated fuel procurement team within the business is a risk management manoeuvre in preparation of the upcoming IMO 2020 regulation changes. These changes will enforce a new 0.5% global Sulphur cap on fuel content from 1 January 2020.” It further cited that “In order to support the trading activities created by the fuel procurement division, Euronav identified the need for a CTRM system. Critical requirements for Euronav were the ability to rapidly deploy the solution and, rich fuel trading functionality. Fusion’s modular, commodity specific functionality coupled with its modern architecture meant it was a clear fit. Fendahl was also able to demonstrate extensive commodity trading and risk management expertise and a detailed knowledge of industry business best practices.”

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Fendahl is also busy on the development front and is working on an accounting solution that will help smaller customers by eliminating their need for an accounting package like SAGE or Quickbooks, he said. The first user of this module should go live in the next month in Dubai and Henry is hopeful that it will encourage more smaller firms to see Fendahl as a solution that is flexible and accommodating enough to meet the demands of the very small to the large entities in the market. Fendahl is also in the process of integrating with Intra for container trading and vessel movements as well as developing more US gas functionality.