What is it?
A strategy that protects you from rising bunker prices, yet allows you to benefit from falling bunker prices. It requires an upfront payment.
How it works
If the spot price is below the agreed maximum price, you simply pay the spot price.
If the spot price is above the maximum price, you still only pay the maximum price.
You and Global agree upon the contract period, the upfront premium, and the future maximum price of physically delivered bunker fuel.
Thereafter, you simply notify Global about the
- volumes required
- port of call, and
- the timing of the delivery.
Extra flexibility
An Optional Port Clause offers you maximum flexibility in your operation. It allows you to
- raise the monthly volume at any port of your choice
- conclude an FPA at just one destinations, or
- take delivery wherever you need the product.
The maximum or spot price for each delivery would, of course, be adjusted with the price difference between the contract port and the place of actual delivery at the time of nomination.
The same type of flexibility also applies to changes in products.
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