Energen, Clarksons Make a Hedge

Wednesday August 14, 2019

London-based shipbroking and research outfit Clarksons has teamed up with finance house Enerjen to offer a hedging service for shipowners wanting to manage their fuel price risks under IMO2020.

Enerjen, which has bunker veteran and former IBIA chair Robin Meech on its advisory board, set out its stall earlier this year.

Clarksons is offering its clients structured financial solutions for bunkers, comprising both physical supply and linked, price-risk, hedging tools, according to maritime news provider Tradewinds.

"In the next 18 months, there will be a period of large bunker price volatility swings," David Paul, Clarksons' managing director of commodities, was quoted as saying.

However, its trading of fuel derivatives and swaps is regulated by the UK's Financial Conduct Authority, which prevents the broker from giving actual execution trading advice to its clients.

Enerjen is able to fill that gap with advice in designing and implementing bunker trading and hedging strategies including their execution.

The firm has been assisting Clarksons' clients as an independent third-party consultant since March, the report said.

In addition to advice, Enerjen has an exclusive agreement in place with a global supplier to offer compliant fuel, according to the report.