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Get more margin and less risk

Keeping fuel costs within a predictable range protects you from unexpected changes in the price of fuel. Changes that could otherwise seriously impact your budget and profit margin.

Fixed price agreements

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.

 

How it works

You and Global agree upon:

  • contract period
  • volume per month
  • place of delivery fuel specification
  • a Fixed Price

Thereafter, you simply notify Global about locations, volumes and times of delivery. The fuel is then supplied and invoiced according to the agreed terms. 

 

Extra flexibility

With fivve working days' notice, the agreed volume per calendar month can be raised in one or several deliveries. 

An Optional Port Clause offers you maximum flexibility in your operation. It allows you to:

  • take delivery wherever you need the product 
  • change fuel specification
  • move volume to another period

The Fixed Price for each delivery would, of course, be adjusted with the price difference between the contractual and the actual place of delivery at the time of nomination. 

 

Three 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 Disadvantages
Protection from price increases Opportunity loss if spot prices fall
100 % price certainty  
No basis and timing risk  
No settlement transaction  
Guaranteed fuel supply  

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