Commodity Management Blog

Innovative Ideas and Thought Leadership for Volatile Commodity Marketplace

Shipping lanes remain the great conduits of commerce. Like the great empires of old, today’s modern trading enterprises are built on naval strength and maritime capabilities, and 90 per cent of the world’s traded goods are transported by sea.

But although the majority of raw materials and finished goods reach their destination by sailing the seven seas, the reality of commercial shipping is much more constricted than the old cliché implies. It may well face fewer logistic challenges than transporting goods across huge land-masses, but getting cargo from one point to another is far from straightforward, and there are still…

The long-term economic consequences of the government bail outs and stimulus packages are far from clear, and predications about what will happen to prices vary enormously.  Triple Point’s Michael Schwartz recently shared with the Journal of Compliance, Risk and Opportunity his thoughts on the New Risk Management Imperative. 

I particuraly enjoyed his thoughts on the 3 things one can be certain about:

1. High Levels of Volatility will Continue to Thrive. The Financial Times/Stock Exchange (FTSE) 100 Index over the recent three-month period shows a surge to 5,796 in April 2010 and a drop in June 2010 to 4,914. In…

PwC released a survey that examined Treasury department’s reaction to the financial crisis, covering both the initial collapse of liquidity and the economic downturn that followed.  The survey contained responses from 585 Treasurers, representing 330 multinational companies, from 26 different countries, covering all industry sectors. 

The area of the survey that most interested me is when Treasurers were asked where they could add the most value over the next five years.  The number one response by a good margin was risk management.

There were four key risk areas identified in the survey: commodity risk, FX risk, IR risk, and…

Triple Point Technology announced today that HPCL-Mittal Energy (HMEL) has licensed Triple Point’s Commodity Management Solution to manage crude supply and product marketing, logistics, and regulatory risk including compliance with IAS 39 disclosure and reporting. Triple Point continues its rapid expansion across the Asia-Pacific region (APAC) with new customers in energy, manufacturing, precious metals, transportation, and food and beverage.

HMEL is a joint venture between Hindustan Petroleum Corporation Limited and Mittal Energy Investment Pte Ltd — a Mittal Group company and owner of the world’s largest steel company. HMEL was established to operate a major oil refinery in India, producing…

As the Dodd-Frank deadlines rapidly approach, most of us wonder where the CFTC is regarding the rulemaking process. Are they done?  Do we know what’s to be expected?  Well, the short answer is – no, not exactly – at least not yet.

Although, the CFTC has pulled off what many would consider a herculean effort, promulgating proposed rules in 28 of the 31 areas that require their consideration under Dodd-Frank, they’re not quite close to doing an end zone dance.  

They have quite a stack of proposed rules on the table, and are now faced with the arduous task of…

I recently had the opportunity to sit down with Carlos Lebrija, VP of Solution Development at Triple Point, to discuss Triple Point’s unique partnership with SAP and highlights of the recent Commodity SL 7.3 release.

Q: What is Triple Point’s partnership with SAP?

Carlos: Triple Point and SAP co-developed a commodity trading, risk, and operations software platform — Commodity Management™ — which utilizes best-of-breed components from both SAP ERP and Triple Point’s Commodity SL™. Commodity SL is the only solution endorsed by SAP in the commodity trading and enterprise risk management area.

Q: How did…

George Carlin once told a great story about how he “put a dollar in one of those change machines and nothing changed.”  Wouldn’t it be nice if we could control change.  In today’s volatile world we never know when to expect it, where it will come from or what it will bring ­- we just know it’s coming.

The Dodd-Frank Act, the most sweeping financial reform since the 1930’s, is coming and it will bring dramatic changes to the face of energy and commodity credit risk.  New rules on central clearing, position limits and margining have the potential to significantly increase…

World Fuel Services Corporation (NYSE: INT) has selected Triple Point’s flagship commodity management platform to support trading, scheduling, counterparty credit risk, and regulatory risk for its global fuel marketing operations.

Headquartered in Miami, Florida, World Fuel Services is a global fuel logistics company, principally engaged in the marketing, sale, and distribution of marine, aviation, and land fuel products and related services. World Fuel Services sells fuel and delivers services to its clients in 200 countries and at over 6,000 locations, including airports, seaports, tanker truck loading terminals, and other customer storage locations.

“Price volatility is driving the rapid…

Ocean Tankers has licensed Triple Point’s chartering and vessel operations software to manage all pre- and post-fixture activities for its wet bulk shipping operations. Ocean Tankers specializes in the transportation of petroleum and related products and provides worldwide coverage.

Incorporated in the Republic of Singapore in 1978, Ocean Tankers has over 2.3 million DWT (Deadweight tonnage) of carrying capacity and services a wide network of customers, including oil majors, state-owned oil companies, and international trading houses. The company manages a fleet of 83 vessels, ranging from small coastal vessels to large ULCCs (Ultra Large Crude Carriers).

“Shipping is a key element…

Hamburg Bulk Carriers (HBC) has licensed Triple Point’s chartering and vessel operations software to manage pre- and post-fixture activities for transporting dry bulk commodities, including coal, aluminum, petroleum coke, fertilizer, cement, clinker, scrap, grain, steel, pig-iron, and ore.

 Founded in 1999, HBC transports an average of 6 million tons of cargo a year. In recent years the company has chartered over 500 vessels from Handysize to Panamax size.

“Triple Point’s chartering and vessel operations software provides HBC with the functional depth and breadth to profitably manage operations, including voyage estimating, post-fix operations, and bunker procurement,” said Michael…

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