DOCSLIB.ORG

Investigating the Effectiveness of Hedging Bunker Price Fluctuation Dang Ben Nguyen World Maritime University

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Investigating the Effectiveness of Hedging Bunker Price Fluctuation Dang Ben Nguyen World Maritime University World Maritime University The Maritime Commons: Digital Repository of the World Maritime University World Maritime University Dissertations Dissertations 2007 Investigating the effectiveness of hedging bunker price fluctuation Dang Ben Nguyen World Maritime University Follow this and additional works at: http://commons.wmu.se/all_dissertations Recommended Citation Nguyen, Dang Ben, "Investigating the effectiveness of hedging bunker price fluctuation" (2007). World Maritime University Dissertations. 400. http://commons.wmu.se/all_dissertations/400 This Dissertation is brought to you courtesy of Maritime Commons. Open Access items may be downloaded for non-commercial, fair use academic purposes. No items may be hosted on another server or web site without express written permission from the World Maritime University. For more information, please contact [email protected]. WORLD MARITIME UNIVERSITY Malmö, Sweden INVESTIGATING THE EFFECTIVENESS OF HEDGING BUNKER PRICE FLUCTUATION By BEN NGUYEN DANG Vietnam A dissertation submitted to the World Maritime University in partial fulfillment of the requirements for the award of the degree of MASTER OF SCIENCE In MARITIME AFFAIRS (SHIPPING MANAGEMENT) 2007 ©Copyright Ben Nguyen Dang, 2007 DECLARATION F*G I certify that all the material in this dissertation that is not my own work has been identified, and that no material is included for which a degree has previously been conferred on me. The contents of this dissertation reflect my own personal views, and are not necessarily endorsed by the University. ……………………………… (Ben Nguyen Dang) August, 2007 ……………………………… Supervised by Professor Pierre Cariou World Maritime University Assessor: Shuo Ma Professor World Maritime University Co-assessor: Orestis Schinas Doctor Transmart Consulting, Greece ii ACKOWLEDGEMENT F*G First of all I would like to express my gratefulness to the Sasakawa Foundation of Japan, particularly to Mr. Yohei Sasakawa, which provided the scholarship to make my postgraduate studies at World Maritime University possible. I pay my sincere thanks to Vietfracht and more particularly to Madam Hoa, General Director, who supported my application and in many ways made it possible for me to attend World Maritime University. I am deeply grateful to Professor Pierre Cariou, for his valuable advice, constructive suggestions and encouragement that enabled me to complete this dissertation; Professor Shuo Ma for his valuable and constructive knowledge; Professor Patrick Donner for his wise instruction and advice during this course; the staff of WMU, particularly the staff of the library Ms Susan Wangeci-Eklow and Ms Cecilia Denne who paid their patient assistance to me in every requirements. The author also thanks IMAREX, the Oslo based International Maritime Exchange, and gives special thanks to its Singapore office’s Mr. Thomas Anzalone who provided useful data for this dissertation. My high appreciation is paid to all friends and colleagues, and the Henrik Smiths Hostel staff, who gave me essential support during my stay in Malmo. Special thanks I owe also to Ms. Thuong who always gives me the necessary support and encouragement. From the bottom of my heart, I dedicate this dissertation to my beloved parents, who offered me full support and encouragement and tolerated my long absence during the studies in Malmö, Sweden. Last but not least, I thank to all those who I have failed to mention here specifically. Ben Nguyen Dang iii ABSTRACT F*G Title of Dissertation: Investigating the effectiveness of hedging bunker price fluctuation Degree: Master of Science in Maritime Affairs (Shipping Management) The dissertation investigates the effectiveness of hedging bunker price fluctuation in three main bunker markets: Singapore, Rotterdam and Houston. To begin with, a deep literature review on the topic is carried out. A brief development of the bunker market from 1990 to 2007 is examined. The influential factors of bunker supply and demand are identified, from which the most determinant factors are discovered by correlation methods. Moreover, methodologies for estimating the hedging effectiveness and hedge ratio are taken into consideration. The application of such financial derivatives into shipping as futures contract, forward contract, options and swaps agreements are carefully examined with some practical examples. Special attention is paid to futures and forward contracts. Finally, the effectiveness of hedging bunker price fluctuation in Singapore, Rotterdam and Houston is investigated using (1): a direct-hedge with bunker forward contracts traded at the International Maritime Exchange (IMAREX) and (2): a cross- hedge using different energy futures contracts traded at New York Mercantile Exchange (NYMEX). Using the OLS regression model, it is found that the hedging effectiveness is different in Singapore, Rotterdam and Houston. The most effective futures instruments for a direct-hedge in Rotterdam and Singapore is the 1-month bunker forward contracts. Meanwhile, for a cross-hedge, WTI futures contracts prove the highest effectiveness of performance in a hedging bunker spot price fluctuation at Rotterdam and Singapore. KEY WORDS: Bunker, bunker price, spot market, futures market, fluctuation, hedging, hedging effectiveness, hedge ratio, OLS regression. iv TABLE OF CONTENTS F*G Page Declaration........................................................................................................................ ii Acknowledgement ...........................................................................................................iii Abstract............................................................................................................................ iv Table of Contents.............................................................................................................. v List of Tables ................................................................................................................... ix List of Figures................................................................................................................... x List of Abbreviations ....................................................................................................... xi CHAPTER 1 INTRODUCTION ............................................................................... 1 1.1 Objective.................................................................................................................. 3 1.2 Methodology............................................................................................................ 4 1.3 Structure of the dissertation ..................................................................................... 5 CHAPTER 2 LITERATURE REVIEWS ON HEDGING IN THE SHIPPING INDUSTRY........................................................................................... 7 2.1 Literature reviews.................................................................................................. 7 2.1.1 General notes on the spot market, future market and hedging .................... 7 2.1.1.1 Spot market, future market and hedging....................................... 7 2.1.1.2 Hedging versus speculation .......................................................... 8 2.1.1.3 Direct-hedge versus cross-hedge .................................................. 9 2.1.1.4 Hedge ratio.................................................................................. 10 2.1.2 Review on general hedging studies ........................................................... 10 2.1.3 Review of hedging studies in shipping industry........................................ 12 2.1.3.1 Review of hedging freight rates studies...................................... 12 2.1.3.2 Review of hedging bunker price studies..................................... 13 2.2 Chapter conclusion .............................................................................................. 14 v CHAPTER 3 INFLUENTIAL FACTORS OF THE BUNKER MARKET ........ 15 3.1 The bunker market.............................................................................................. 16 3.1.1 Development of bunker market 1990-2007............................................... 18 3.1.1.1 1990-1999 period: low bunker price and stable development.... 18 3.1.1.2 2000-2007 period: high bunker price and fluctuation ................ 20 3.1.2 Singapore –Rotterdam –Houston: three major bunker markets................. 21 3.1.2.1 Singapore .................................................................................... 22 3.1.2.2 Rotterdam.................................................................................... 23 3.1.2.3 Houston....................................................................................... 24 3.2 Influential factors of the bunker market ........................................................... 25 3.2.1 Supply factors ............................................................................................ 25 3.2.1.1 Oil market ................................................................................... 25 3.2.1.2 Changes in bunker level, refining capacities .............................. 28 3.2.1.3 Other supply factors: delivery methods, change in oversea competition, change in local market........................................... 29 3.2.2 Demand factors.......................................................................................... 30 3.2.2.1 Development of world economy................................................
Load more

Recommended publications
  • Role of Risk Management in the Oil and Gas Industry
    ROLE OF RISK MANAGEMENT IN THE OIL AND GAS INDUSTRY: THE EFFECT OF DERIVATIVE CONTRACTS USED TO MANAGE OIL AND GAS PRICE RISK ON STOCK PRICE SENSITIVITY IN THE OIL AND GAS INDUSTRY DURING A PERIOD OF DECLINING OIL AND GAS PRICES by Andrew J. Neuberger Submitted in partial fulfillment of the requirements for Departmental Honors in the Department of Finance Texas Christian University Fort Worth, Texas May 2, 2015 ROLE OF RISK MANAGEMENT IN THE OIL AND GAS INDUSTRY: THE EFFECT OF DERIVATIVE CONTRACTS USED TO MANAGE OIL AND GAS PRICE RISK ON STOCK PRICE SENSITIVITY IN THE OIL AND GAS INDUSTRY DURING A PERIOD OF DECLINING OIL AND GAS PRICES Project Approved: Supervising Professor: Mann Steve, Ph.D Department of Finance Morgan Ken, Ph.D Department of Geology 1 ABSTRACT This study focuses on the various risk management policies used by oil and gas producers in the energy industry. Oil and gas producers are highly exposed to commodity prices. Commodity prices are highly volatile and can fluctuate immensely with changing market conditions. Given the most recent commodity price downturn (June 2014 – December 2015), this study aims to analyze how different risk management policies can affect the stock price sensitivity of oil and gas producers during a commodity price downturn. This study will focus specifically on derivative instruments used by oil and gas producers to minimize their oil and gas price exposure, and whether or not these derivative instruments have any effect on the stock price sensitivity during a period of declining oil and gas prices. This study analyzes a sample of 50 North American oil and gas producers, their risk management policies and use of derivative instruments, and determines if there is a relationship between stock price sensitivity and use of derivative instruments during the most recent commodity price downturn.
    [Show full text]
  • Kyma Shaft Power Meter
    Kyma Shaft Power Meter Reference list May 2021 Kyma a.s Tel: +47 55 53 00 14 Aasamyrane 88B Fax: +47 55 53 00 17 N-5116 Ulset (Bergen) E-mail: [email protected] NORWAY Web: www.kyma.no Page 2 Advantage Verdict Vessel name Yard/hull Type Delivery Product Power Daewoo H5492 2021 KPM-P 24510 kW Daewoo H5493 2021 KPM-P Daewoo H5494 2021 KPM-P Daewoo H5495 2022 KPM-P Aegean Shipping Vessel name Yard/hull Type Delivery Product Power COSCO Yangzhou N984 Crude Oil 2021 KPM-P 11350 kW COSCO Yangzhou N985 Crude Oil 2022 KPM-P COSCO Yangzhou N986 2022 KPM-P COSCO Yangzhou N987 2022 KPM-P AET Vessel name Yard/hull Type Delivery Product Power Daewoo H5499 2022 KPM-P Daewoo H5500 2022 KPM-P Daewoo H5506 2022 KPM-P Al Kharsaah Inc Vessel name Yard/hull Type Delivery Product Power Al Kharsaah Samsung 1644 LNG Carrier 2006 KSP Al Shamal Inc Vessel name Yard/hull Type Delivery Product Power Al Shamal Samsung 1645 LNG Carrier 2007 KSP Alaska Transport Vessel name Yard/hull Type Delivery Product Power Polar Alaska 1983 TTM 20000 PS Arctic Tokyo 1983 TTM 20000 PS Alberta Shipping Vessel name Yard/hull Type Delivery Product Power Sumitomo S1407 KPM-P 11110 kW Albro Navigation Co Inc Vessel name Yard/hull Type Delivery Product Power Fiora Topic Namura S401 Bulk Carrier 2015 KSP 5720 kW Alcyon shipping Vessel name Yard/hull Type Delivery Product Power Bluemoon IHI 3137 Bulk Carrier 2001 KPM-P 21798 PS Aleutian Spray Fisheries Inc Vessel name Yard/hull Type Delivery Product Power Starbound Dakota Creek 22 Factory Stern 2016 KPM-P 3677 kW Algoma Central Corp Vessel
    [Show full text]
  • Proposed Port Tariff Hikes Slashed Regulator Grants 4.49% Increase
    NEW SOUTH AFRICA SHIPPING (PTY)LTD FREIGHT & TRADING WEEKLY • Clearing & Forwarding • Imports • Exports • Breakbulk • Groupage • Road & Sea Transportation • Warehousing DBN JHB Tel: +27 31 461 8500 Tel: +27 11 453 3978 Fax: +27 31 468 1406 Fax: +27 11 453 7527 Cell: 083 777 1986 Cell: 083 777 1890 Email: [email protected] Email: [email protected] FTW4810 FRIDAY 28 January 2011 NO. 1943 For import/export decision-makers Proposed port tariff hikes slashed Regulator grants 4.49% increase BY Alan Peat approval of the required regulator was guided by the exclusion of the property TNPA indicated that the revenue,” PR CEO Riad National Ports Act (NPA) business and the lack of tariffs in the tariff book In a repeat of last year, the Khan told FTW. “The PR and the Directives, and a transparent system for were determined by a Ports Regulator of SA has has considered the tariff considered the submissions determining tariffs.” range of factors and there cut the port tariff increase application and has refused contained in the application, Also where the application was no formula, of general for April 1 proposed by the requested 11.91% tariff written and oral comments falls foul of the regulatory application or otherwise, Transnet National Ports increase sought by the TNPA received in the consultation framework is that it requires that explained the tariff Authority (TNPA) by almost for the tariff year 2011/2012. process and its own that the application should differentials,” said Khan. two-thirds. “In considering the information and research. set out the manner in “In the absence of a TNPA was expecting an TNPA’s tariff application, “The application is largely which the tariffs have been clearly articulated model 11.9% tariff increase, but the (it was) concluded that a compliant with the Act, calculated and the model the regulator’s decision Ports Regulator (PR) granted 4.49% tariff increase was Regulations and Directives used for determining them.
    [Show full text]
  • Distr. GENERAL E/CEPAL/G.1223 12 November 1982 ORIGINAL: ENGLISH
    Distr. GENERAL E/CEPAL/G.1223 12 November 1982 ORIGINAL: ENGLISH C E P A L Economic Commission for Latin America CARGO UNITIZATION IN THE LIGHT OF INSTITUTIONAL REQUIREMENTS FOR ITS SUPPORT 82-10-2257 - iii - SUMMARY While many forms of cargo unitization and especially that of containers have been utilized in the trade flows of developed countries since the early 1960s, these systems began to be introduced in ever-growing numbers at the ports of Latin American and Caribbean countries during the latter part of the 1970s. As a result, large investments have been made by the public and private sectors of this region in appropriate vessels and cargo handling equipment to facilitate their transport as well as port loading and discharge operations. Nonetheless, for the benefits of cargo unitization to be fully realized, it should be understood that containers and other cargo grouping units must not be treated as merely another means of packing goods for carriage, but rather as an entirely new transport system. With a view to examining the institutional requirements of cargo unitization, chapter II of the present document analyses the evolution and impact of container and RO-RO transport systems and various activities which have been undertaken in this r>egion to expand the utilization of these systems by carriers, shippers, etc., while chapter III evaluates the need to create an appropriate institutional infrastructure for cargo unitization. In order to fully realize the benefits of cargo unitization, various institutional changes are called for which would permit the uninterrupted movement of such units from origin to destination without intermediate unloading for Customs' inspections and the official clearance of goods at destination.
    [Show full text]
  • The Risk Revolution
    Risk Practice McKINSEY WORKING PAPERS ON RISK The Risk Revolution Number 1 Kevin Buehler, September 2008 Andrew Freeman and Ron Hulme Confidential Working Paper. No part may be circulated, quoted, or reproduced for distribution without prior written approval from McKinsey & Company. The Risk Revolution Contents Introduction 2 Acknowledgements 3 The emergence of modern risk management 4 Table 1: Important theories and their applications 5 Risk in the financial sector 8 Goldman Sachs and the culture of risk 14 Risk for nonfinancial companies 16 Case study: TXU Corporation 19 A practical corporate risk-management process 22 Table 2: Examples of risk across industries 31 Selected sources 35 McKinsey Working Papers on Risk is a new series presenting McKinsey's best current thinking on risk and risk management. The papers represent a broad range of views, both sector-specific and cross-cutting, and are intended to encourage discussion internally and externally. Working papers may be republished through other internal or external channels. Please address correspondence to the managing editor, Andrew Freeman, [email protected] 2 Introduction In the past 18 months, we have witnessed a major credit and liquidity crisis in the banking system as losses from subprime mortgages, structured investment vehicles, and “covenant- lite” leveraged loans generated significant knock-on effects worldwide. Major financial institutions have taken more than $500 billion in write-offs, and central banks around the globe have initiated emergency measures to restore liquidity. CEOs have been replaced at such venerable institutions as Citigroup, Merrill Lynch, and UBS. Bear Stearns, a firm once viewed as having a conservative approach to risk management, has been the target of a rescue by JPMorgan that was driven and to some extent sponsored by the Federal Reserve.
    [Show full text]
  • Comments on Volcker Rule Regulations Regarding Energy Commodities
    Comments on Volcker Rule Regulations Regarding Energy Commodities Submitted by IHS Inc., February 2012 IHS CERA IHS Consulting IHS Global Insight IHS Inc. is pleased to submit this independent comment letter to the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Securities and Exchange Commission and the Commodity Futures Trading Commission regarding Restrictions on Proprietary Trading and Certain Interests in, and Relationships with, Hedge Funds and Private Equity Funds.1 Our research examines the impact on the U.S. domestic energy sector and economy as a whole, under the implementation, as proposed, of the market making provisions of section 13 of the Bank Holding Company Act, commonly known as the "Volcker Rule." This study has been commissioned by Morgan Stanley. The analysis and the opinions contained in this submission are entirely those of IHS Inc. and its related organizations and they are solely responsible for the contents herein. © Copyright 2012. ALL RIGHTS RESERVED. ALL INFORMATION, FORECASTS, AND PREDICTIONS CONTAINED HEREIN ARE BELIEVED BY IHS GLOBAL INC. TO BE AS ACCURATE AS THE DATA AND METHODOLOGIES WILL ALLOW. HOWEVER, BECAUSE OF THE POSSIBILITIES OF HUMAN AND MECHANICAL ERROR, AS WELL AS OTHER FACTORS SUCH AS UNFORESEEN AND UNFORESEEABLE CHANGES IN POLITICAL AND ECONOMIC CIRCUMSTANCES BEYOND IHS' CONTROL, THE INFORMATION HEREIN IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND. IHS AND ALL THIRD PARTY PROVIDERS MAKE NO REPRESENTATIONS OR WARRANTIES EXPRESS OR IMPLIED TO ANY PERSON OR ENTITY AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY OF THE INFORMATION OR FORECASTS CONTAINED HEREIN.
    [Show full text]
  • Data (7.388Mb)
    Cost Calculation This model gives you the possibility to calculate the costs for a container vessel sailing different routes between Asia and the U.S. East Coast. Single Voyage Cost Comparison This option gives you the possibility to compare different route alternatives for a single voyage. It also allows you to run different sensitivity analysis for key variables. Explanation Choose your preferred calculation method by clicking directly at one of the options presented above. This will take you to a sheet. The cells marked in red are the input cells. Choose your input values and the model will calculate itself. If you want results or run a sensitivity analysis, choose between the alternatives presented on the right side in the calculation sheet. be presented in a new Excel book. Further explanation to the model can be found in Appendix 3 in our research paper. Brevik and Melleby © 2014 Cost Calculation Model This model gives you the possibility to calculate the costs for a container vessel sailing different routes between Asia and the U.S. East Coast. Round-Trip Calculation This option gives you the possibility to calculate a round-trip voyage. It also calculates the annual result for the chosen round-trip. Explanation to the model: Choose your preferred calculation method by clicking directly at one of the options presented above. This will take you to a calculation sheet. The cells marked in red are the input cells. Choose your input values and the model will calculate itself. If you want to export your results or run a sensitivity analysis, choose between the alternatives presented on the right side in the calculation sheet.
    [Show full text]
  • User Perspectives on Derivatives and Hedging Activities Disclosures Under IFRS
    USER PERSPECTIVES ON FINANCIAL INSTRUMENT RISK DISCLOSURES UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS Derivatives and Hedging Activities Disclosures (Volume 2) January 2013 User Perspectives on Derivatives and Hedging Activities Disclosures Under IFRS Foreword CFA Institute1 has undertaken a study to examine the quality of existing financial instruments risk disclosures. The overall study evaluated credit, liquidity, and market risk disclosures and disclosures for derivatives and hedging activities under International Financial Reporting Standards (IFRS). The study specifically focuses on IFRS Statement No. 7 (IFRS 7), Financial Instruments: Disclosures. This report, Volume 2, provides a user perspective on the disclosures of derivatives and hedging activities. It is an extension to Volume 1, which provided a user perspective on financial instrument credit, liquidity and market risk disclosures. Acknowledgements This report was developed with significant contribution from Gerry White, Tony Cope, the Advocacy and Outreach Team of the Standards and Financial Market Integrity (SFMI) division, Publications team, and several other colleagues who reviewed the report, and Catherine Kleszczewski who provided administrative support during the report-writing phase. We also acknowledge the participation and input of the CFA Institute members and non-member sell-side analysts who contributed their time and valuable insights. Authors Vincent T. Papa, PhD, CFA Director, Financial Reporting Policy CFA Institute Sandra J. Peters, CFA, CPA Head, Financial Reporting Policy CFA Institute 1 CFA Institute is the global association for investment professionals. It administers the CFA and CIPM curriculum and exam programs worldwide; publishes research; conducts professional development programs; and sets voluntary, ethics-based professional and performance-reporting standards for the investment industry.
    [Show full text]
  • The Impact of Hedging on Stock Returns and Firm Value: New Evidence from Canadian Oil and Gas Companies
    The Impact of Hedging on Stock Returns and Firm Value: New Evidence from Canadian Oil and Gas Companies Chang Dan, Hong Gu and Kuan Xu∗ ∗Chang Dan, Financial Analyst, Chang Jiang Securities, Wuhan, China. Hong Gu, Associate Pro- fessor of Statistics, Department of Mathematics and Statistics, Dalhousie University, Halifax, Canada. Kuan Xu, Professor of Economics, Department of Economics, Dalhousie University, Halifax, Canada. Correspondence: Kuan Xu, Department of Economics, Dalhousie University, Halifax, Nova Scotia, Canada B3H 3J5. E-mail: [email protected]. We thank Shamsud Chowdhury, Iraj Fooladi, Greg Hebb, Yanbo Jin, Barry Lesser, Maria Pacurar, John Rumsey, Oumar Sy and participants of the School of Business and the Department of Economics Seminars at Dalhousie University for their helpful comments on the earlier draft of this paper. Remaining errors are, of course, the responsibility of authors. 1 The Impact of Hedging on Stock Returns and Firm Value: New Evidence from Canadian Oil and Gas Companies Abstract In this paper we analyze (a) the impact of hedging activities on the relationships between oil and gas prices/reserves and stock returns and (b) the role of hedging on firm value among large Canadian oil and gas companies. Differing from the existing literature this research attempts to explore possible nonlinear impact of hedging activities, which may not be fully revealed in the traditional linear framework. By using generalized additive models, we find that factors that affect stock returns and firm value are indeed nonlinear. The large Canadian oil and gas firms are able to hedge against downside risk induced by unfavorable oil and gas price changes.
    [Show full text]
  • Airline Treasury & Risk Management Forum Airline Fuel Hedging in 2016
    Airline Treasury & Risk Management Forum Airline Fuel Hedging in 2016 & Beyond Mike Corley, Mercatus Energy Advisors The State of Airline Fuel Hedging in 2016 and Beyond 4 October 2016 How many aircraft are in your company’s fleet? 26% 37% 1-25 26-50 51-75 76-100 5% 100 or more 21% 11% Company Ownership 21% 42% Publicly Traded Privately Held Government Owned 37% Fuel as Percentage of Total Costs 21% 37% 1-25% 26-35% 36-45% 42% Does your company hedge fuel price risk? 32% Yes No 68% Does your company have a hedging/risk policy? 8% Yes No 92% Primary purpose of your fuel hedging program? 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% ManageManage cash flowexposure volatility toManage short-term exposure fuel to price long-term increases fuel priceOther increases Who makes company’s fuel hedging decisions? 8% Board of Directors 23% Hedge or Risk Management Committee 8% Chief Financial Officer, VP of Finance, Treasurer Other 61% What fuel hedging instruments does your company utilize? 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Futures Forwards Swaps Call Collars Other (Physical) Options What is the maximum tenor of your fuel hedge positions? 8% 15% 8% 1-6 Months 8% 7-12 Months 15% 13-18 Months 19-24 Months 25 Months or More Other 46% % of fuel consumption hedged for coming 12 months 15% 8% 1-20% 46% 21-40% 41-60% 61-80% 31% Primary reference index 23% Brent Crude Oil US Gulf Coast Jet Fuel 8% Rotterdam Jet Fuel 69% (NW Europe and ARA) Anticipate credit related issues may limit your ability to hedge your fuel price risk in coming year? 25% Yes No 75% Do you utilize clearing for credit risk management? 0% Yes No 100% What type of firm is your primary counterparty(s) Global Financial Institution (i.e.
    [Show full text]
  • Daily Shipping Newsletter 2004 – 197 Vlierodam Wire
    DAILY SHIPPING NEWSLETTER 2004 – 197 Number 197***DAILY SHIPPING NEWSLETTER***Tuesday 05-10-2004 THIS NEWSLETTER IS BROUGHT TO YOU BY : VLIERODAM WIRE ROPES Ltd. wire ropes, chains, hooks, shackles, webbing slings, lifting beams, crane blocks, turnbuckles etc. Binnenbaan 36 3161VB RHOON The Netherlands Telephone: (+31)105018000 (+31) 105015440 (a.o.h.) Fax : (+31)105013843 Internet & E-mail www.vlierodam.nl [email protected] The new Hoek van Holland lifeboat JANINE PARQUI under construction Photo : Jerry Bezuijen © PSi-Daily Shipping News Page 1 10/4/2004 DAILY SHIPPING NEWSLETTER 2004 – 197 EVENTS, INCIDENTS & OPERATIONS World´s largest containership CSCL EUROPE seen here departing from Rotterdam with 24 hours delay due to the strike of the dockworkers at the Delta Terminal Photo : Hans de Jong – Maritime pictures © Fatigue risks too great Following the release of accident investigation reports into two groundings in the Marlborough Sounds this year the Maritime Safety Authority has called for boat owners, operators and crew to pay more attention to the issue of fatigue. The grounding of the Kathleen G in May and the Physalie in June both resulted from skippers falling asleep due to fatigue. “Fortunately no-one was injured in these accidents but our research shows fifty percent of seafarers were fatigued on at least one of their last five trips and already this year there have been five accidents where fatigue has been a major contributing factor,” says MSA Manager Strategic Analysis and Planning Sharyn Forsyth. “The fishing industry by nature has a highly demanding physical workload but not managing fatigue properly is clearly too great a risk to take.
    [Show full text]
  • European Customs Leniency As New Security System Kicks In
    C M Y CM MY CY CMY K Warehouse 1 & Office Block D3 Isando Industrial Park Gewel Street, Isando FREIGHT & TRADING WEEKLY Tel: + 27(0) 11 398 4900 Fax: + 27 (0) 11 392 1058 [email protected] Your level 1 BEE partner MAKING THE WORLD A SMALLER PLACE VISIT: WWW.KAPELE.CO.ZA FTW4523 FRIDAY 21 January 2011 NO. 1942 For import/export decision-makers Rail containers European Customs leniency as escape rain new security system kicks in disruptions BY Joy Orlek BY Alan Peat Exporters to Europe have While the heavy rains been given a welcome in South Africa caused breather following the floods that disrupted January 1 introduction of a the transport of coal, new Import Control System chrome and corn exports designed to beef up security. to the ports over the European authorities have early part of this month, indicated that no penalties according to Transnet will be implemented Freight Rail (TFR), this for late submission of would seem to be only documentation – at least for bulk shipments. for the first two months of The container trade the year – as shippers and out of SA, meantime, shipping lines acclimatise to appears to have been the new system. only minimally affected. ICS requires that Lawrie Bateman, MD entry summary (ENS) of MSC Logistics, told declarations are submitted FTW that because the to the first airport or seaport main Johannesburg- of landing in the EU prior to Durban rail link has arrival of any cargo destined been running smoothly, for, or transiting the EU. container traffic has not The ENS declaration must been affected.
    [Show full text]