What if we told you cruise companies use financial derivatives to navigate volatile fuel prices and manage financial risk?
Global cruise lines rely on derivatives to smooth out costs and keep long-term strategies on course even when markets get rough.
Here's how they use derivatives:
- Fuel hedging to lock in bunker fuel prices and reduce exposure to oil price swings
- Interest rate swaps to manage financing costs on billion-dollar ship builds
So, what's below deck? Every one of those derivatives needs to be reported under regulations like EMIR and MiFIR.
Would you have guessed cruise holidays are powered by financial risk management?
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