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Global Risk Management is a group of companies, all belonging to the same ultimate owner...
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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.
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 |