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You are here: Experts > Business > Global Business > International Business > Oil Trading
Expert: Mike Dodds - 10/28/2009
Question
Dear Sir,
I just opened an office, which intentionally for trading of fuel and energy, because i saw the opportunity in Indonesia (as our country has a huge import for this products and also the government liberalized the importing and trading of fuel since year 2000).
but I still have the lack of expertise in this field, especially on selecting the reliable suppliers and agents, especially from Singapore and Malaysia.
the past one year i only deal with fake brokers claiming they have the product at good price, but not a single one proof to be true.
I really needed your advice in obtaining the product (MFO and HSD) with good price from Singapore or malaysia, so I can enter the tender for supply to several power plants in my country, because I am so tired of brokers and fake contract which only waste my time, energy and my investor's money.
Thank you very much for your attentions.
Fahmi
Indonesia
Answer
Dear Fahmi,
Fake brokers are a very real danger in international trade, as you've seen. I do not have experience in the oil industry, but I do have some suggestions for you that may help avoid these thieves.
First, I recommend that you plan a trip to Singapore and Malaysia. By visiting the suppliers and brokers you will know immediately if they are real or only pretending to be real companies. During your visit you can see for yourself and your investors how these companies run and operate and determine what level of confidence you have in their operations.
Second, join one (or more) of the domestic and international trade organizations in the oil & power industry. Most fake companies and agents will not be members, most real companies will be. The trade organization can help provide you with real agents as well as provide information and training in your field. The organization may have a listing of identified fake brokers.
Third, when you locate some brokers ask them to provide you with some references (customers they deal with whom you may contact). If they do not have any references or the references are only in their home country or you've never heard of them (and they are not members of an industry organization) then chances are they are either not real or they have very small experience. If they have little experience then your job will be very difficult dealing with them as they can not help you with the complications of importing/exporting the fuel.
Fourth, you are going to always be at risk of fake brokers. You must accept that fact, otherwise, you should find another occupation. With time and experience you will learn how to identify them easily. If possible try to find someone in an industry organization to be your mentor/coach. Their expertise can help you identify signs that will warn you about fake brokers.
Good luck, international trade can be quite an adventure.
Mike Dodds
east.west.pm@gmail.com
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