Our final post in this series on the basics of bunker hedging will focus on another tool that offers executives a combination of risk reduction and flexibility.   #3: Collar   A collar (a combination of a call option and a put option) is a financial instrument designed to hedge a company’s fuel exposure by […]

  Certain market situations or attitudes to risk by company executives require instruments with more flexibility then a swap.  Rather than locking in a particular bunker price for a defined time period, a hedger may prefer to retain some exposure to fuel prices while setting an upper limit, beyond which he would be unwilling to […]

The third installment of our series on bunker hedging will focus on the final two major reasons why companies, government agencies and ‘not-for-profit’ corporations should manage their fuel price risk.   #5: Attract quality investors   Attracting quality investors is tremendously important, whether it is a long-term institutional asset manager or pension fund buying shares […]

The second installment of our series on bunker hedging will focus on two more compelling reasons why companies should manage their fuel price risk.   #3: Secure Competitive Advantage   One of the most important reasons to manage price volatility in fuel markets is to secure a company’s competitive edge.  If you ask an executive […]