Its not a drill
Yes early this month we seen a crazy rising streak of 30USD, 28USD, 60USD , 30USD for 4 trading days in a roll and everyone is panicking and some supplier jump out and start yelling ” that’s why you need to fix a contract now ” , while hedging is a good tool but shouldn’t;t be done while in panic mode, below is something you should do when that happen again
- Know your ETA and usual lead time for that port
If your vessel is coming tomorrow, even today up 100USD, there are only 2 options you could take, one is just fix it as you need the bunker, next is take the bunkers in next port or even on next voyage if possible, it should be done under a logical calculation instead of feeling “lose” if take the bunkers today as the market don’t care when your vessel is coming.
2. Check with more channel than usual
Although market up a certain amount but some trader / supplier might take position previously or have cargo left, in that case there are chances they can quote you price slightly better than market rate if they give them a firm counter to try your luck. Also despite the paper go up 100USD doesn’t really mean the spot market really go up 100USD also, so get the best price you can get out there.
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