Maximum Price Agreement

A strategy that protects you from rising bunker prices, yet allows you to benefit from falling bunker prices. 

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. 

Maximum Price Agreement

Benefits

• Protection from price increases
• Benefit from falling fuel prices
• No settlement transaction

• No basis and timing risk

• Guaranteed fuel supply

• 100% price certainty

 

Disadvantages

• Upfront premium

 

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

- See more at: http://www.global-riskmanagement.com/Hedging_tools/Maximum_Price_Agreements.aspx#sthash.i61aEVag.dpuf

Benefits

• Protection from price increases
• Benefit from falling fuel prices
• No settlement transaction

• No basis and timing risk

• Guaranteed fuel supply

• 100% price certainty

 

Disadvantages

• Upfront premium

 

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

- See more at: http://www.global-riskmanagement.com/Hedging_tools/Maximum_Price_Agreements.aspx#sthash.i61aEVag.dpuf

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

Benefits

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

Disadvantage

  • Upfront premium

More physical hedging tools

Fix your fuel prices at any port of your choice, independent of future market movements.

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