E25 has actually a very significant exposure to the cost of ocean freight i.e apart from the one implied in the current contract for the phase 1 and 2 production. We are also planning to building the plants for the HPMSM product overseas.
So an investigation into how we can hedge some of that exposure is appropriate with the freight market having dropped to current levels.
my first thought would be to take a look at the existing phase 1/2 contract. How long does it go for? Replace /renegotiate
easier said than done - many a company has made big mistakes but there is no better time to do this
cheers
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