Marine Fuels Design Study

EEX Marine Fuels Hedging Survey

This short survey collects data from EEX customers on their applications of marine fuel hedging instruments. The survey will only take 5 minutes to fill in, and can be submitted anonymously.

If you wish to receive a summary of the survey results, kindly fill in your name and email address, so that we can contact you when the responses have been analysed.

We appreciate your help in keeping EEX the one-stop marketplace for risk management and hedging in the shipping market.

Kind regards,

The EEX Global Commodities Team

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* 1. What is your company name? (Optional)

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* 2. What is your name? (Optional)

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* 3. What is your email address? (Optional)

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* 4. What size is your company? (Optional)

Small

Medium

Large

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* 5. What type of company do you work for? (Optional)

Ship owner / operator

Charterer

Commodity trader

Financial / speculation / fund

Broker

Clearing participant

Other (please specify)

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* 6. How do you generally manage fuel price risk?

Hedging using derivatives

Long term supply agreements

Both

Neither

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* 7. On average, what percentage of your fuel exposure do you hedge?

100%

Clear

i We adjusted the number you entered based on the slider’s scale.

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* 8. In order of importance, which pricing area for marine fuel is most important to you?

Singapore / SEA

N/A

Rotterdam / NWE

N/A

China / NEA

N/A

Middle East

N/A

USG

N/A

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* 9. Which financial contracts do you use for hedging marine fuels?

Brent futures

Brent / cracks / time spreads

Fuel Oil Cargo futures

Gasoil futures

Delivered Bunker futures

All of the above

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* 10. What type of fuel do you hedge?

High Sulphur Fuel Oil (HSFO)

Low Sulphur Fuel Oil (LSFO)

Both

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* 11. What is the time horizon for your hedging programme?

<1 year ahead

Up to 2 years ahead

Up to 3 years ahead

>3 years ahead

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* 12. What types of financial instruments do you use to hedge marine fuels exposure?

Futures (executed electronically)

Block futures (via voice brokers)

Swaps (direct between counterparties/banks)

Options (executed electronically)

Options (via voice brokers)

Options (bilateral)

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* 13. How important is basis risk in your fuel hedging?

Directional coverage is adequate

Some basis risk is acceptable

Low basis risk is preferred

Hedging needs to be as accurate as possible

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* 14. In order of priority, which is more important?

Price transparency

N/A

Liquidity

N/A

Eliminating basis risk

N/A

Transaction costs (Exchange and clearing fees)

N/A

Margin offsets against other products (e.g. FFAs)

N/A

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* 15. What is your preferred lot size when trading marine fuel derivatives?

10 metric tonnes per lot

100 metric tonnes per lot

1000 metric tonnes per lot

Other (please specify)

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* 16. How could EEX help your ability to manage marine fuel risks?

Listing futures and/or options on fuel oil cargo benchmarks

Listing futures and/or options on delivered bunker fuel benchmarks

The existing market for marine fuels meets my current needs

Other (please specify)

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* 17. If new contracts are required what are you more interested to see developed?

Cash settled futures

N/A

Physically settled futures

N/A

Exchange for physical (EFP) mechanism

N/A

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* 18. Which index providers do you think offer good benchmarks for the marine fuels market?

Platts

Argus

IHS/OPIS

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* 19. What other types of services would you be interested in from EEX?

Data / analytics

Fundamental analysis

Trading tools

Electronic trading

Other (please specify)

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* 20. Would you like EEX to contact you to discuss your requirements in the marine fuels market?

Yes