Chiquita Brands International Inc., Cincinnati, has hired Westport, Conn.-based Triple Point Technology, a provider of commodity and enterprise risk management software solutions, to help manage the produce company’s transportation costs.
Specifically, Chiquita has selected Triple Point’s Commodity XL software to manage price exposure to transportation costs, including freight rates and bunker fuel, according to a release from Triple Point.
Chiquita’s core ships use 300,000 metric tons of bunker fuel annually, according to the release.
A 1% move in the fuel rate represents a $1.3 million impact to Chiquita’s costs. To help offset that volatility, Chiquita has used derivatives to hedge price movements in fuel and must comply with Federal Accounting Standard 133 to receive beneficial hedge accounting treatment.
The company was looking for ways to improve efficiency in those accounting processes by moving away from spreadsheets.
Commodity XL enables Chiquita to manage these processes electronically with strict audit and meeting all federal reporting requirements.
“Brand new markets are seeking Triple Point solutions to drive cost volatility from the supply chain and preserve margins,” Michael Schwartz, chief marketing officer at Triple Point, said in the release.
“Triple Point’s mission has always been to help companies profitably buy, sell and move commodities. Growing market share across industries facing large exposure to commodity inputs — including food, heavy manufacturing and transportation — affirms Triple Point’s leadership position.”