A planning framework for bunker risk management : hedging in bunker risk management integrated network
As bunker is the predominant bulk of liner operation costs, it is increasingly difficult to yield a stable income for liner ship-owners given the ever-skyrocketing fuel prices. Operational measures such as slow steaming can no longer counteract the rising fuel cost efficiently. Bunker Adjustment Fac...
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| Other Authors: | |
| Format: | Final Year Project (FYP) |
| Language: | English |
| Published: |
2013
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| Online Access: | http://hdl.handle.net/10356/53883 |
| _version_ | 1826123671300734976 |
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| author | Du, Jing. |
| author2 | Teo Chee Chong |
| author_facet | Teo Chee Chong Du, Jing. |
| author_sort | Du, Jing. |
| collection | NTU |
| description | As bunker is the predominant bulk of liner operation costs, it is increasingly difficult to yield a stable income for liner ship-owners given the ever-skyrocketing fuel prices. Operational measures such as slow steaming can no longer counteract the rising fuel cost efficiently. Bunker Adjustment Factor (BAF) though an industry practice now, does not deliver optimal customer service as ideally could. As a result, hedging has become increasingly significant in bunker risk management in liner shipping market. However, hedging is still in its infancy stage for maritime industry hence a lack of research in general. This report focuses on hedging and discusses how it contributes to the integrated framework by studying the optimal hedge ratio and evaluating the hedge effectiveness. The results show that by incorporating an optimal hedge ratio into decision-making, companies can reduce bunker risk more effectively. From an aspect of organizational behaviour, the integrated framework encourages effective communication among departments hence promotes healthy collaboration in the organization and enhancing financial performance. |
| first_indexed | 2024-10-01T06:08:29Z |
| format | Final Year Project (FYP) |
| id | ntu-10356/53883 |
| institution | Nanyang Technological University |
| language | English |
| last_indexed | 2024-10-01T06:08:29Z |
| publishDate | 2013 |
| record_format | dspace |
| spelling | ntu-10356/538832023-03-03T17:00:53Z A planning framework for bunker risk management : hedging in bunker risk management integrated network Du, Jing. Teo Chee Chong School of Civil and Environmental Engineering Centre for Transportation Studies DRNTU::Engineering::Maritime studies::Maritime management and business As bunker is the predominant bulk of liner operation costs, it is increasingly difficult to yield a stable income for liner ship-owners given the ever-skyrocketing fuel prices. Operational measures such as slow steaming can no longer counteract the rising fuel cost efficiently. Bunker Adjustment Factor (BAF) though an industry practice now, does not deliver optimal customer service as ideally could. As a result, hedging has become increasingly significant in bunker risk management in liner shipping market. However, hedging is still in its infancy stage for maritime industry hence a lack of research in general. This report focuses on hedging and discusses how it contributes to the integrated framework by studying the optimal hedge ratio and evaluating the hedge effectiveness. The results show that by incorporating an optimal hedge ratio into decision-making, companies can reduce bunker risk more effectively. From an aspect of organizational behaviour, the integrated framework encourages effective communication among departments hence promotes healthy collaboration in the organization and enhancing financial performance. Bachelor of Science (Maritime Studies) 2013-06-10T02:36:04Z 2013-06-10T02:36:04Z 2013 2013 Final Year Project (FYP) http://hdl.handle.net/10356/53883 en Nanyang Technological University 65 p. application/pdf |
| spellingShingle | DRNTU::Engineering::Maritime studies::Maritime management and business Du, Jing. A planning framework for bunker risk management : hedging in bunker risk management integrated network |
| title | A planning framework for bunker risk management : hedging in bunker risk management integrated network |
| title_full | A planning framework for bunker risk management : hedging in bunker risk management integrated network |
| title_fullStr | A planning framework for bunker risk management : hedging in bunker risk management integrated network |
| title_full_unstemmed | A planning framework for bunker risk management : hedging in bunker risk management integrated network |
| title_short | A planning framework for bunker risk management : hedging in bunker risk management integrated network |
| title_sort | planning framework for bunker risk management hedging in bunker risk management integrated network |
| topic | DRNTU::Engineering::Maritime studies::Maritime management and business |
| url | http://hdl.handle.net/10356/53883 |
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