Page 29: of Marine News Magazine (March 2015)
“Transparency, the ability for all the parties to view a universal benchmark for prices, is fundamental and essential to preserving con? dence in the system. And it is the integrity of the exchanges that allow us to structure a hedge with the highest certainty that it will do the job intended.” than they go up, yet when prices do go up they tend to stay up longer. This is why it is important to understand how to cover risk without actually taking on more exposure.
If higher fuel prices will impact your bottom line, cause your company to be uncompetitive, or create other issues, then you should look at the cost/bene? t of a hedge pro- gram. Any company, no matter the scope, can hedge its exposure. When measured by fuel consumption, this can involve those that use as little as 30,000 gallons and as much as 20 million gallons annually; proof positive that anyone can realize the bene? ts of a well thought out hedge program. www.marinelink.com