What if I need to lift in another port?

You can choose to use "Port Differential". We compare the price in the baseport with the price in the new port. If there is a Platts Settlement in both ports, we add or deduct the difference in the ports with the original contract price. If there is no Platts Settlement in the new port we compare the original contract price with the actual buying price.

What if I need another product than the one agreed in the contract?

You can use the "Product Differential" in the contract. This is the same principal as with Port Differential.

What if I cannot lift the full volume in a given month?

There is a +/- 5% flexibility build into the contract for each month that you can deviate from the contract. If the deviation is greater, we can roll the volume to next month or even prolong the contract if you wish. There will be a minor fee depending on the market structure. This fee will be calculated from the forward curve and depends on whether the market is in Contango or Backwardation.

What if I want to change the period for the contract?

It is normally possible to change the period or prolong the contract. The forward pricing on the product will decide the premium – just like in the above matter.

What if I cannot lift anything because my freight disappeared?

In this case you can choose to “Cash settle” the contract. Then OW Risk Management will compare your buying price with the actual forward price in the market. If prices increase after you have signed the contract, OW Risk Management will pay you the difference if prices go down you will have to pay us. This is the same principle as a Swap.