How to hedge steel prices without derivatives

If you deal with steel, the word “hedging” is a magic spell to turn you off. “Thanks, but this is not for us.” We know because we’ve been in your shoes. Time and again we were battered by a pricing roller coaster when trading and financing steel. We tried to do...

Exporting with confidence

As all businesses expanding beyond national boundaries learn, global market opportunities go hand in hand with intrinsic risks. Whether one is aware or not, SMEs operating in foreign markets are routinely exposed to many risks. Examples include:   ·        Price...

My cargo, my bond (Trade and Forfaiting Review)

As more customs bonded warehouses spring up around the globe, exporters may benefit from a new tool to manage the counterparty performance and credit risks. Consider the following situation as an example:   Two parties enter into an international sales contract that...

FCR: flaws, risks, and solutions (Trade Finance Magazine)

A Forwarder’s Certificate of Receipt (FCR) facilitates international trade by offering the shipper of goods a possibility to advance receipt of payment, on the one hand, and providing the payer with the forwarder’s undertaking to ship the goods as indicated in the...

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