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Oslo-listed Belships enters into VLSFO/HSFO price hedging contract

13 May 2019

Oslo-listed ship bulk ship operator and management firm Belships ASA has entered into an agreement to hedge the price differential between compliant 0.5% sulphur fuel oil (VLSFO) and 3.5% sulphur fuel oil (HSFO), it says.

The secured exposure is for 24,000 metric tonnes (mt) of bunkers for the full calendar year 2020. The volume equals the annual fuel consumption of about four vessels. The fixed price differential is USD 198 per ton, with monthly settlements in 2020.

“The company’s trading fleet will be physically ready by January 2020 to comply with the IMO Sulphur Cap 2020, which prohibits marine bunkering fuels containing more than 0.5% sulphur in order to improve the shipping industry’s environmental footprint,” it explains.

“The bunker price differential hedge reduces downside risks and represents an efficient alternative to costly installations of scrubbers, whilst retaining full utilisation of the fleet and the flexibility to adjust the position as the market develops.”

To date, the Belships fleet counts 19 Supramax/Ultramax bulk carriers, including one newbuilding from Imabari, Japan in the first half of 2020.

Published: 13 May, 2019

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