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

People & Company News

AAPA Elects Quinn as Chairman of the Board

The American Association of Port Authorities (AAPA) elected Jim Quinn, president and CEO of New Brunswick, Canada’s Port Saint John, to serve as the international

Scorpio Bulkers Sells Three Newbuilds for $111m

Scorpio Bulkers Inc. announced that it has entered into agreements to sell three newbuild dry bulk vessels, including two Capesize ships and an Ultramax ship, for

EPA Promotes Green Initiatives at Port of Houston

U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy visited the Port of Houston April 24 to highlight grants aimed at improving air quality. The port will receive about $900,

Finance

Milaha Reports Improved Net Profit for Q1

Qatar Navigation (Milaha) Q.S.C. has announced its financial results for the three months ended March 31, 2015, in which it reported operating revenues of QR 786 million vs.

SFL Acquires Eight Bulk Carriers from Golden Ocean

Ship Finance International Limited (SFL) has entered an agreement to acquire eight Capesize dry-bulk carriers from subsidiaries of Golden Ocean Group Limited, the company announced today.

Truckers to Strike Four SoCal Shippers

Truckers who haul freight from the ports of Los Angeles and Long Beach will go on strike against four ground-shipment companies on Monday, a Teamsters union official said,

Fuels & Lubes

BHGI-designed ATB Unit Under Construction

Bristol Harbor Group, Inc. (BHGI) informs it is currently completing the detail design phase of a 399’ x 74’ x 30’ 80,000 BBL double hull oil tank barge and a 120’

EPA Promotes Green Initiatives at Port of Houston

U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy visited the Port of Houston April 24 to highlight grants aimed at improving air quality. The port will receive about $900,

Skangass Celebrates Topping Up

Nordic liquefied natural gas operator Skangass  has celebrated a topping out ceremony at its Pori LNG terminal. The company said it was making progress in the

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | 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: 0.3546 sec (3 req/sec)