This fireside chat recap is from FreightWaves’ Fuel Buyers Summit
FIRESIDE CHAT TOPIC: Fuel price hedging: not as complicated as you think.
DETAILS: Fuel buyers tend to blank out when the topic turns to “hedging” fuel costs — but it’s really not that complicated. Elaine Levin, president of hedging strategies firm Powerhouse, explains why hedging is critical for anyone who buys bulk fuel — especially carriers.
SPEAKER: Elaine Levin, president, Powerhouse
BIO: Powerhouse President Elaine Levin has over 30 years of experience working with energy producers, refiners, marketers and consumers executing hedging strategies. She is the instructor of Powerhouse’s Practical Hedging Course. Prior to Powerhouse, Levin was vice president, futures specialist at Morgan Stanley. She has taught the principles of price risk management to hundreds of senior energy industry executives and was the principal instructor for the highly regarded OPIS Fuel Hedging University for over 14 years. Levin is past president of the National Capital Area Chapter of the U.S. Association for Energy Economics.
KEY QUOTES FROM ELAINE LEVIN:
“Hedging is a mechanism that allows you to take control of your budgets and allows you to have an offset so that if fuel prices go higher, you have your fuel costs under control.”
“The most successful hedgers are the ones who don’t pray that they have a payoff on their hedging instruments, and those that hedge regularly and routinely.”
“The good news is, you don’t have to rely on your physical fuel sellers — you can do it yourself. But I would start with education — and find a good partner who can explain the instruments, hold your hand and make sure you’re doing it correctly.”
