Fixed Price Agreement

A Fixed Price Agreement is a mutually binding contract designed to fix your fuel prices at any port of your choice, independent of future market movements.

3 good reasons to use this strategy

  • Rising fuel prices would seriously undermine your business
  • Stabilise your business with a guaranteed fuel supply in the ports you specify at a fixed price
  • Focus on your core business - not on paper hedge issues

Benefits

  • Protection from price increases
  • 100% price certainty
  • No basis and timing risk
  • No settlement transaction
  • Guaranteed fuel supply

Disadvantages

  • Opportunity loss if spot prices fall

More physical hedging tools...

A Maximum Price Agreement is a strategy that protects you from rising bunker prices, yet allows you to benefit from falling bunker prices.

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