Global Risk Management - Bunker Risk Management

Global Risk Management is part of United Shipping and Trading Company (USTC) headquartered in Denmark. Founded in 1876, USTC is a financially strong shipping group with offices worldwide and a turnover of over one billion USD.

A significant owner of tankers, USTC is actively engaged in:

• Worldwide bunkering
• Bunker risk management
• Shipping

Global is operating under the USTC umbrella with a team-based organization structure. Global Risk Management is fostering collaboration and fluid information exchange across a worldwide bunker organization.

Responding to this growing need for shipping companies to better manage their risk of volatile fuel prices, Global see the opportunity to be a company that has this speciality.

BUNKER RISK MANAGEMENT

Part of a family of shipping, ship owning and fuel trading companies, Global is well positioned to be a strong company leveraging its extensive expertise in the shipping, oil and finance industries.

It is a complex business that requires knowledge of all three areas to help shipping companies truly capitalize on the nuances of bunker risk management in the shipping fuel industry.

Combining this expertise in shipping, oil and finance with a unique organization structure and approach enables Global to deliver solutions that are more creative, flexible and customer focused.

CUSTOMIZED BUNKER CONSULTATION

When customers work with us, they get a very efficient and customized approach that results in 360° solutions and services designed specifically for them. We speak the language of bunkers and finance, so we know how to quickly get everyone an optimal service.

Drawing on our expertise and leveraging our company model, we are set to respond in a very customer focused way. As consultants, we have no preference for a specific type of contract. Our aim is to deliver solutions and services that fit our customers, not the other way around.

When surveyed, shipping company decision-makers stress the need for creative and customized solutions, objectivity, availability, and information services designed to meet their individual needs. Global's flexible and customer-centric services are specifically designed to respond to these demands.

WORLDWIDE BUNKERING

Global intends to offer customers their choice of a range of paper and fixed price agreements; customized information, on demand; 24-hour availability; complete flexibility with harbours, products and currency; volumes and quality of oil to precise specifications; one dedicated and knowledgeable contact person; and training and education services.

At Global, bunker risk management is what we do. In fact, we invented the concept of BRM. Fixed price agreements with physical delivery in any port around the world? We invented that too.

We are experts at structuring paper hedge agreements that cover most ports of the world. We offer a wide range of financial strategies from the most commonly used instruments such as SWAPS, to more complex instruments such as participation swaps, double-up swaps, cap options and zero-cost collars.

With Global, you will experience the advantages of two powerful bunker hedging tools: physical agreements and paper hedge agreements.

PHYSICAL BUNKER AGREEMENTS

The procedure of buying physical agreements is almost identical to buying bunkers on the spot market. The only difference is that delivery and payment take place sometime in the future where the time span is normally up to one year.

You can enter a Fixed Price Agreement (FPA®) or Maximum Price Agreement (MPA®) in any port around the world. When the time of the delivery arrives, we will guarantee the delivery according to the agreed terms.

PAPER HEDGE BUNKERING AGREEMENTS

Paper Hedge Agreements (PHA®) enable you to lock in the prices on your future bunker consumption without committing yourselves to taking physical delivery at any specific destination.

For example, when you buy a swap, you simply fix the price on a prior defined Platt´s reference, which is used by local suppliers when calculating their daily bunker prices.