Price risk management tailored to you

Price Risk Management Solutions Customized to Your Operations

Price risk management helps you mitigate risk and stabilize cash flows. Our highly effective physical and financial fuel price risk management programs are customized to your budgetary requirements.

 

Aviation


Flexible fuel pricing for aviation

Get flexible fuel purchasing options. We offer simple and sophisticated financial instruments and effective physical price control tools such as fixed forward pricing and alternative price formulas.

Working with airport jet indices and at posted price airports, we customize programs to meet your specific needs. Our all-in-one products keep it simple, avoiding complex derivative financial contracts while providing price certainty you need.

To optimize purchasing at the airport level, we help you secure a fixed volume of fuel, at a fixed price, for a specified period. We also allow you to pay for the fuel consumed, avoiding a “take or pay” arrangement. Or you can use our capped pricing option to set an agreed maximum jet fuel price for the duration of an agreement, with no fixed-minimum price.

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Customer Success Story

WFS offered an interesting combined supply and hedging tool and was able to show some flexibility when we needed it.

Procurement Manager, Regional Carrier

  • Business challenge: A leading independent carrier in Europe wanted a competitive and flexible jet fuel delivery and hedging package
     
  • WFS solution: Tailored program at key airports

Land


Reduced risk for C&I and transportation

Take advantage of deep local market knowledge and reduce your risk. With a complete suite of customizable financial solutions, we help you track fuel spend and control future costs. We are experts at crafting hedging solutions embedded into supply contracts and capped supply price offerings. And our products are flexible to fit your operations.

A Platts-related supply contract helps you control future costs via a first-class distribution network:

  • Costs per supply point/location identified and agreed
  • Embedded risk management features and forward price visibility
  • Auditor dependent: normal purchase/normal sale classification without MTM reporting
     
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Customer Success Story

WFS put together a solution tailored for our specific whisky distilleries – HFO spot and forward budgeting needs on flexible contract

Procurement Category Manager, Chivas Brothers

  • Business challenge: Chivas Brothers required more flexibility in fuel pricing
     
  • WFS solution: Custom flexible physical supply contract 

Marine


Custom price risk management for marine

Get customized strategies for the marine market. From fixed forward to capped supply pricing, our diverse derivative products and physical contract strategies are designed to meet your specific needs.

Our physical products enable buyers to reduce their buying costs over the short or long term. Trigger contracts, discounted contracts and capped floating contracts are also available on a variety of underlying indices. Exotic features can be added to extract even more value.

We monitor daily opportunities between fuel types, locations, and times. And we successfully trade in products cracks, time spreads, geographical arbitrage, and flat prices. Purchase swaps and options in fuel oil cargo indices, such as MOPS 380CST, USG No6 3.0%, CIF Med 3.5%, and Rotterdam FOB Barges 3.5%, at selected ports including China, U.S. West Coast, Rotterdam, and the Canaries.

 

READ MORE ABOUT PRICE RISK MANAGEMENT

Customer Success Story

WFS offered us an innovative financial solution that helped alleviate risk and allowed us to budget with more certainty

Senior Procurement Manager, nuclear and alternative energy company

  • Business challenge: A recent project for a large nuclear and alternative energy company faced budget uncertainty surrounding oil prices
     
  • WFS solution: Custom solution to reduce volatility over the long-term

Why choose World Fuel Services?

  • VOLUME Embedded solutions for 50+ MT of fuel annually
     
  • SECURE Unified global internal risk management system and policies
     
  • COMPREHENSIVE 24-hour market coverage
     
  • GLOBAL 100+ professionals in London, Singapore, New Jersey, and Miami
     
  • EXPERIENCE Professionals from international banks, trading houses, and fuel suppliers
     
  • CREATIVE Financial derivatives, flexible physical supply, embedded deals and buying structures that use optionality to enhance value
     
  • FLEXIBLE Multi-region, multi-location, port or airport, and multi-index capabilities
     
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Our locally based teams offer expertise on market forces and regulatory constraints in every global region.

Contact us learn more.