Ishaan Hemnani, co-founder of BunkerEx gives his opinion on bunker hedging and why most small to mid-sized shipping companies choose not to hedge their bunker exposure despite increased market pressures caused by the virus.

Last week the CEO of a large bunker trader wrote a great piece about how small and mid-sized shipping companies are not actively hedging their bunker exposure using derivatives. Bunker prices have risen $90 in the last month. To put this into context, in late April if a shipowner fixed an end-May cargo requiring 1,000mt of bunkers they would have taken a $90,000 hit on their voyage profit…