Bunker swap contracts
A Swap is a paper hedge agreement that allows you to fix your fuel prices at a predefined level, independent of future market movements. Here's an example of FFP lock in forward bunker prices avoiding price volatility and assisting options , forward and swap contracts in the commodity and financial market could be 4 Dec 2013 Select the most relevant contract (e.g. US Gulf Coast No.6 Fuel Oil 3%); Select volume of fuel to hedge; Select time period. Introduction to Bunker 4.1.1 Hedging bunker price using a cross-hedge with energy futures contract .. 45 Appendix G - Bunker forward and swap contracts traded at IMAREX
1.4 Introduction to derivatives: contracts and applications. 8. 1.4.1 Forward contracts. 9. 1.4.2 Futures contracts. 10. 1.4.3 Swaps 10.6 Bunker swap contracts.
The bunker price fluctuations in recent years have severely threatened the stability of liner shipping companies’ operations. As an efficient countermeasure, the swap contract is widely adopted throughout the liner shipping industry to hedge the procurement risk resulting from the bunker price fluctuation. A Bunker Swap is a contract which allows ship-owners and charterers to fix the cost of their bunkers. The most common bunker swap is the fixed rate bunker swap. Examples 2 and 3 below will allow us to better understand how bunker swaps work. The hedging strategy most commonly used to hedge bunker fuel is known as a fixed price swap. The price of these swaps is based on the forward market prices for the most "liquid" (actively traded) bunker fuel price indices such as Platts Gulf Coast 3% fuel oil, Platts Rotterdam 3.5% fuel oil or Platts Singapore High Sulfur fuel oil 380 CST. Swaps are available on nearly all types of fuel including bunker fuel, diesel fuel, gasoil, gasoline, heating oil, jet fuel, fuel oil, etc. Swaps received their name as the buyers and sellers of swaps are “swapping” cash flows with one another - floating for fixed and vice versa. In finance, a swap is a derivative contract in which one party exchanges or swaps the values or cash flows of one asset for another. Of the two cash flows, one value is fixed and one is variable and based on an index price, interest rate or currency exchange rate. Swaps are derivative instruments that represent an agreement between two parties to exchange a series of cash flows over a specific period of time. Swaps offer great flexibility in designing and structuring contracts based on mutual agreement. This flexibility generates many swap variations,
30 Aug 2018 On 30 August 2018, BW LPG entered into contracts to retrofit dual-fuel LPG Bunker swaps were transacted to hedge bunker price risks.
Swaps are derivative instruments that represent an agreement between two parties to exchange a series of cash flows over a specific period of time. Swaps offer great flexibility in designing and structuring contracts based on mutual agreement. This flexibility generates many swap variations, A Bunker Swap is a contract which allows ship-owners and charterers to fix the cost of their bunkers. The most common bunker swap is the fixed rate bunker swap. Examples 2 and 3 below will allow us to better understand how bunker swaps work. The bunker price fluctuations in recent years have severely threatened the stability of liner shipping companies’ operations. As an efficient countermeasure, the swap contract is widely adopted throughout the liner shipping industry to hedge the procurement risk resulting from the bunker price fluctuation. The BW180 Index is a daily average dollar value index of 180 centistoke (cst) bunker fuel from the same 20 key bunkering ports used to calculate the BWI (Bunkerworld Index). To obtain a representative geographical spread, the ports were selected by size with reference to their geographical importance.
1 Aug 2013 Bunker Fuel and iron Ore products in Asia Pacific. Which Contract do you consider. 2. Options – the benefits comparison to an FFA SWAP.
The BW180 Index is a daily average dollar value index of 180 centistoke (cst) bunker fuel from the same 20 key bunkering ports used to calculate the BWI (Bunkerworld Index). To obtain a representative geographical spread, the ports were selected by size with reference to their geographical importance. Liquidity on the 0.5% swap contracts is as yet unknown, but traders point towards increased activity through 2019 as more clarity has been provided, with physical demand for 0.5% marine bunker fuel picking up towards Q4 2019. Open interest for ICE March Singapore HSFO swap contracts rises 18% on month in Feb Total open interest for the March Singapore high sulfur fuel oil swap contracts traded on the Intercontinental Exchange rose 18% month on month to 6.13 million mt as of February 28, data from the exchange showed this week.
The BW180 Index is a daily average dollar value index of 180 centistoke (cst) bunker fuel from the same 20 key bunkering ports used to calculate the BWI (Bunkerworld Index). To obtain a representative geographical spread, the ports were selected by size with reference to their geographical importance.
#1: Swaps. A swap is a financial instrument that allows the buyer to hedge his bunker exposure by fixing the price he pays for fuel at a predefined level, over a predefined time period. Execution: Select the most relevant contract (e.g. US Gulf Coast No.6 Fuel Oil 3%) Select volume of fuel to hedge. Select time period. Cleartrade says its market offers a better way to trade bunker contracts. Cleartrade Exchange (CLTX) says it is listing three fuel oil single swap contracts, allowing traders to swap as little as one metric tonne of fuel oil on the exchange's commodity and freight derivatives platform. Buying on Contract This is an option favoured by bunker buyers who don’t want to risk the daily fluctuations of the spot market and purchase enough volume to negotiate themselves a good premium The bunker price fluctuations in recent years have severely threatened the stability of liner shipping companies’ operations. As an efficient countermeasure, the swap contract is widely adopted throughout the liner shipping industry to hedge the procurement risk resulting from the bunker price fluctuation.
The hedging strategy most commonly used to hedge bunker fuel is known as a fixed price swap. The price of these swaps is based on the forward market prices for the most "liquid" (actively traded) bunker fuel price indices such as Platts Gulf Coast 3% fuel oil, Platts Rotterdam 3.5% fuel oil or Platts Singapore High Sulfur fuel oil 380 CST. Swaps are available on nearly all types of fuel including bunker fuel, diesel fuel, gasoil, gasoline, heating oil, jet fuel, fuel oil, etc. Swaps received their name as the buyers and sellers of swaps are “swapping” cash flows with one another - floating for fixed and vice versa. In finance, a swap is a derivative contract in which one party exchanges or swaps the values or cash flows of one asset for another. Of the two cash flows, one value is fixed and one is variable and based on an index price, interest rate or currency exchange rate. Swaps are derivative instruments that represent an agreement between two parties to exchange a series of cash flows over a specific period of time. Swaps offer great flexibility in designing and structuring contracts based on mutual agreement. This flexibility generates many swap variations,