Let us reduce or eliminate your company's exposure to fluctuating bunker costs.
At IBS we have considerable experience and expertise within fuel price hedging and FPA (Fixed Price Agreements). We can help you reduce or even eliminate your company's exposure to fluctuating bunker costs and thereby protect you from unpleasant financial surprises. Our risk management tools can keep your company safe from fluctuations that could seriously impact your budget and profit margin.
Bunker oil expenses often represent the largest fraction of the operational costs, and managing your fuel price risk effectively ensure that your company’s cash flow and earnings are as you expect it, and put your company in a better position when you are negotiating important financial conditions with your partners, bankers and investors. Thus there are numerous reasons why your company should fix or cap a bunker price at a certain level and a certain period of time.
The first steps in the process towards an effective fuel risk plan are for IBS to gain an understanding of where your company is exposed to and threatened by the volatility of the fuel price, to learn about your current attitude towards the imminent fuel price risks, to gather data regarding your daily fuel consumption, and finally to identify your expectations and goals regarding fuel costs.
Next step is for you and us to work together on a plan that outlines all aspects of how to reduce or eliminate your company’s fuel price exposure. We will suggest to you a range of tools, help formulate your company’s overall fuel risk strategy, and assist you when implementing your fuel price risk plan.
Fuel risk management is an ongoing task, and it is important that we work together to review and adjust your plan: Has your company’s fuel risk plan so far been as efficient as we expected? Does it still fit your needs and requirements? These are a few of many questions that we need to consider regularly. Therefore we will make sure to review and if necessary adjust the plan on a regular basis. Managing your fuel risk can be crucial when striving to reach your company’s business and financial goals. Our hedging experts are dedicated to, and our effective risk management tools are designed to, keep you safe from harm in a volatile market.