Orion Holdings Ltd is always thinking of new ways to assist our clients in managing their risk, be it if you are a buyer or a physical supplier.
Our Main hedging instruments are listed below.
Swaps
A Shipping company or a Physical supplier can enter into a swap based on Fuel Oil cargo reference (or bunker price reference), such as to fix a price for his fuel supply over a period of time and gets,
A FIXED SUPPLY COST DISCONNECTED FROM FURTHER MARKET MOVEMENTS HENCE FULL PROTECTION AGAINST UPWARD OR DOWNWARD MARKETS.
Options
A Shipping Company can enter into a Call based on Fuel reference, such as to lock in a maximum supply cost for his fuel supply over a period of time and gets.
A FULL PROTECTION AGAINST UPWARDS MARKET PRICE MOVES AND THE FULL BENEFIT OF DOWNSIDE MARKET MOVEMENTS
This Kind of insurance requires the payment of an option premium at the beginning of the transaction.
Physical Fixed price
Orion is pleased to offer our buyers a fixed price contract in most major ports around the globe.
You and Orion agree on the price level of your future bunkers, lets say for example you buy a fixed price contract for January though till April at USD 400 pmt for 5000 mts per month, thereafter the market price will not affect your purchase price.
Bespoke Hedging solutions
Orion Holdings Ltd is delighted to offer its clients a bespoke hedging instruments tailored around your specific business. Please don't hesitate to contact us in order to discuss this further. |
