This half day course is for bunker buyers, traders and suppliers wishing to understand how IMO 2020 may affect the hedging of bunker fuel prices as the ‘old’ contract disappear and ‘new’ ones emerge.

Attendees will learn best practices in bunker fuel price risk management, using new low sulphur fuel oil contracts and gasoil contracts as well as basis risk between ports and how to manage regional discrepancies.

Course Leader

Mikal Bøe

Mikal is a senior executive with 28 years’ experience in shipping, technology and commodities; with particular focus on risk management.

Prior to starting CORE-POWER in 2016, Mikal served as Chief Risk Officer and Director in charge of Singapore office for Thoresen Thai Agencies (BKK:TTA) an Asian industrial group stock listed in Thailand. He previously served as Chief Risk Officer for Eagle Bulk Shipping (NASDAQ:EGLE)in Singapore and New York; and spent many years at IMAREX, the first regulated marketplace for freight derivatives.

Several unique new businesses were started by Mikal, including bunkerworld.com (1997) sold to S&P Platts in 2013, Cleartrade Exchange, now part of the EEX and owned by Deutsche Boerse and CORE-POWER - established to spearhead the development of a commercial market for the ‘Liquid Fluoride Thorium Reactor’ in transport and industry.

Syllabus

Bunker risk management essentials

  • The economics of a bunker hedge in a COA and for bunkers on redeliver
  • Classic signs of when to hedge and when to float on the spot market  
  • Tried and tested hedging strategies – practical examples  
  • How IMO 2020 changes bunker hedging, and why  

Hedging bunker price exposure with new contracts

  • Term structure and oil market dynamics  
  • The new low sulphur fuel oil contracts, market mechanics post 2020  
  • Low sulphur marine gasoil contracts  
  • Basis risk and regional price differentials, best practice hedging  
  • New hedging strategies – practical examples  
  • Execution,clearing, collateral and cash management 

Terms and conditions

The Baltic Exchange must be in receipt of full payment prior to the day of the training course or your nominated delegate(s) may not be allowed entry to the event. Cancellations 14 days prior to the event will be refunded at 50% of the delegate fee. 

Cancellations within 14 days cannot be refunded. All cancellations must be received in writing.

Names of delegates may be changed at any time without charge and notification of name changes should be made in writing. Registration fees include lunch and refreshments and course notes.

Further questions

Please contact Bill Lines on: 
Tel:  +44 (0)20 3326 8460
Email:  [email protected]