This department manages claims from the shipment of the Group’s oil and oil products, metals and minerals relating to demurrage, despatch, deviations, port costs, freight differentials, risk premiums, etc, with both the ship owners and contractual parties. The department’s role is to minimise the Group’s exposure from payable and receivable claims through the careful drafting of contracts and diligent negotiation of claims.
Team members develop a deep and thorough understanding of contracts of sale and of best practice in working with charter parties. They advise on the potential P&L impact for each claim, the Group’s overall monthly exposure and are responsible for finalizing claims in a timely manner.
Meet one of the team
A day in the life of a graduate
Rotation 1 - graduate
Country: Houston - USA
Education: State University of New York at Binghamton - Economics and Pre Law
History: Started as a Market and Risk Analyst in Houston 15 months ago
Interests: Sports, reading
Arrive in the office, markets open in New York at 8.30am which is 7.30am in Houston and I like to double check our positions.
Have a quick chat with the traders, check they agree on positions and the Profit or Loss from the day before. Sometimes they’ll have some questions I need to investigate but all seems in good order today.
Take a look at one of the official published reports (Argus or Platts) on the previous day’s market activity. These give a brief rundown of the market movement and I like to check the volume of the market as well as the range traded. This is also valuable information for the trader.
Once the traders and other analysts are satisfied with everything from yesterday we will officially publish the results to the management. This also involves writing a brief synopsis on how we made or lost money, and why.
A key role of the deals desk analyst is accurately hedging any ‘pricing’ exposure on the book. Once I have calculated what I need to do, I will send an order into one of our traders asking him to execute a trade on my behalf.
Time for a quick lunch, usually I’ll grab something and eat at my desk as our afternoons are quite busy and there is a fair bit to do.
Today my trader is putting together the next month blending plan and wants to go through the economics. Setting up a blending plan and making sure all risk is correctly hedged can take some time and accuracy is of the utmost importance.
Paper market has now closed, and most of the physical trading is completed so we can start working on our end of day processes and seeing how we performed.
Now we have the published settlements we can go about calculating a PnL based on our positions against the markets close (Mark-to-Market).
We have various trades to reconcile both physical and paper across a number of different grades. We have to make sure that everything is hedged correctly and that will generate the new position.
Send out an estimate of the profit and loss and the new trading position.
Head out to play 5-aside football with some of the other Traf guys.