FIS Makes Bunker Swaps Simple

(Press Release)
Wednesday, March 07, 2012

London - Freight Investor Services has expanded its rapidly growing commodity broking business into cleared, over-the-counter bunker swaps. The new service – the Fuel Oil Single Swap (FOSS) - comes in response to escalating bunker prices, which are hurting shipowner margins at a time of historically low freight rates.
The new FIS offering will include three fuel oil contracts: Singapore 380 centistokes (CST), Singapore 180 CST and Rotterdam 3.5% sulphur barges FOB. In contrast to existing swaps, these contracts will be traded in lot sizes of just one tonne, enabling easier access to these markets for smaller players such as shipowners who need to manage their fuel cost risk for small fleets or even individual vessels.
This new pool of liquidity should attract players from across the bunker sector, including suppliers and traders as well as funds and banks.
The price of Singapore 380 CST bunkers stands $40/t higher than at the start of 2012. A typical Capesize vessel on a 45-day voyage can consume 2,500 tonnes of fuel, costing over $100,000 more today than just two months ago. By hedging that price risk shipowners and operators can protect themselves more effectively than leaving themselves at the mercy of the spot market.
“With some of the lowest freight rates of the past 20 years across all the shipping sectors - including dry bulk, tanker and container markets – and some of the highest bunker prices on record, fuel oil can account for as much as 70% of vessel running costs,” said John Banaszkiewicz, FIS Managing Director. “This needs to be traded and managed. FIS is delighted to offer this innovative broking service where size does not matter. Any counterparty, whatever their size, can trade as many or as few bunker swaps as they want. Added to this, the three bunker swaps will be available in real-time, with live prices posted on FIS’ free multi-commodity trading screen, making them even simpler and easier to trade.”
The swaps will be listed for clearing by SGX and NOS and consist of a single tonne, cash-settled swap contract based on the Platts daily assessment price of the main index, tradable up to four years forward.
 

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

GasLog Acquires 2 BG Group's Carriers

GasLog Ltd. completed the acquisition of two LNG carriers from Methane Services Limited (“MSL”), a subsidiary of BG Group plc (“BG”), which was previously announced on December 22, 2014.

Radio Holland bags Ahrenkiel Contract

Ahrenkiel Steamship GmbH & Co. KG and Radio Holland Germany GmbH, part of Imtech Marine, have agreed a long-term maintenance agreement for the entire Ahrenkiel Steamship fleet,

Chevron's Kirkland to Retire

Chevron Corporation confirmed today that George L. Kirkland, vice chairman and executive vice president, Upstream, will retire from the company, effective June 15.

Finance

OOCL Orders Six Ultra-Large Container Ships

Orient Overseas (International) Ltd. has placed a new order for six mega 20,000 teu container ships from South Korean shipbuilder Samsung Heavy Industries Co. for US$951.

Wan Hai Profits Up

Asian container operator Wan Hai Lines Ltd sees 2014 profit jump as revenue grows faster than costs.   The Taiwanese container carrier recorded a profit of TWD5.

DP World to Develop Maldives Ports

Dubai-based port operator DP World has signed an agreement with the Maldivian government to develop the archipelago’s ports and logistics industry.    Maldives' tourism minister,

Fuels & Lubes

U.S. Submits Formal Plan for Paris Climate Talks

The United States on Tuesday formally submitted its climate change strategy to the United Nations, outlining domestic measures it is taking to achieve up to a 28

Shipbuilding: Mitsui Delivers Bulk Carrier

Mitsui Engineering & Shipbuilding Co., Ltd. (MES) completed and delivered a 56,000 dwt type bulk carrier M.V. Desert Osprey (MES Hull No. 1862) at its Chiba Works

Palfinger Chooses NAMJet Waterjets

Netherlands-based Palfinger Boats has launched the first of two Damen-designed FRSQ 1200 fast-rescue/oil response vessels.   Built in Harderwijk, Netherlands,

 
 
Maritime Contracts Maritime Standards Naval Architecture Pipelines Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1774 sec (6 req/sec)