Many shipowners' procurement strategies are still relatively unsophisticated. File Image / Pixabay
Brokerage LQM Protection Services has reminded bunker buyers to consider hedging against expected price hikes over the next year.
In a survey of its clients last week, two-thirds said they thought bunker prices would rise over the next 12 months, but only half said they used risk management strategies to mitigate this risk, LQM said in an emailed statement Tuesday.
"We fully understand the reluctance by some owners and charterers to enter into the fuel oil futures market; it's an area which leaves some overwhelmed and those with relatively small clip sizes feeling overlooked," Daniel Rose, chief executive of LQM, said in the statement.
"But we're in the unique position of being both a broker and experienced trader.
"We can guide potential participants through the entire process and help clients manage their specific hedging needs."