Risk Management / Fixed Price Agreement 
Why Use It?
A mutually binding contract designed to fix your bunker prices at any port of your choice, independent of future market movements
How It Works
You and International Bunkering agree upon the contract period and the future price of physically delivered bunker fuel.
Thereafter, you simply notify International Bunkering about locations, volumes and delivery terms.
Thereafter, you simply notify International Bunkering about locations, volumes and delivery terms.
There Is No Settlement - You Simply Pay The Agreed Price
No matter what the spot price is at that time. The bunkers are then supplied and invoiced according to the agreed terms.
Extra Flexibility
With five working days notice, the agreed volume per calendar month can be raised in one or several deliveries.
An Optional Port Clause offers you maximum flexibility for your operation. It allows you to:
• raise the monthly volume at any port of your choice,
• conclude an FPA at just one destination, or
• take delivery wherever you need the product.
The fixed price for each delivery would, of course, be adjusted with the price difference between the contract port, and the place of actual delivery at the time of nomination.
The same type of flexibility also applies to product changes.
The Pros and Cons Benefits
• Protection from price increases.
• 100% price certainty.
• No basis and timing risk.
• No settlement transaction.
• Guaranteed fuel supply.
• 100% price certainty.
• No basis and timing risk.
• No settlement transaction.
• Guaranteed fuel supply.
3 Good Reasons To Use This Strategy
• Rising fuel prices can seriously undermine your business.
• Stabilise your business with a guaranteed fuel supply in the ports you specify at a fixed price.
• Focus on your core business - not on paper hedge issues.
Benefits of using bunker risk management:
• Ability to focus on your core competence and maximise productivity and profitability.
• Security and stability.
• Power to control costs in the midst of volatile bunker markets.
• Stabilise your business with a guaranteed fuel supply in the ports you specify at a fixed price.
• Focus on your core business - not on paper hedge issues.
Benefits of using bunker risk management:
• Ability to focus on your core competence and maximise productivity and profitability.
• Security and stability.
• Power to control costs in the midst of volatile bunker markets.
Disadvantages
• Opportunity loss if spot prices fall.