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PIL lost $160m from bunker hedging in 2015/16

PIL lost $160m from bunker hedging in 2015/16

Bunker hedging is presented as a form of risk management but is fair to say Singapore shipowner SS Teo would not agree in terms of its effectiveness.

Teo, md of Pacific International Lines (PIL), was asked at Marine Money Asia if there was anything he would change in his career at the 50 year-old family owned shipowner.

Teo only cited two things that he regretted doing. The first was ordering ships 10 years ago when newbuilding prices were at their peak and the other was bunker hedging.

“I lost about $160m in 2015 and 2016 from hedging bunkers,” he revealed.

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