Maximum price agreements

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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.

Maximum price agreements

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. 

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

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

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