Trading & Logistics
How a cargo moves from tank to tank.
An outline of the commercial and physical structure of a petroleum transaction. Specific shipping, terminal and storage arrangements are confirmed per offer.
01
FOB transactions
Under Free On Board, the seller delivers product across the vessel's manifold at the named load port. The buyer nominates and charters the vessel, and risk passes once product enters the vessel's tanks. Quantity and quality are fixed by load-port inspection.
02
CIF transactions
Under Cost, Insurance and Freight, the seller arranges carriage and marine insurance to the named discharge port. Risk passes at loading; cost responsibility extends to destination. CIF is offered only where confirmed in a specific SCO.
03
Terminal coordination
Loading windows, berth allocation, tank-to-vessel transfer and terminal documentation are coordinated with the third-party terminal operator named in the contract.
04
Marine shipping arrangements
Vessel acceptance follows vetting criteria, Q88 review and laycan agreement. Laytime and demurrage terms follow the charter party and contract.
05
Product loading and delivery
Product is loaded under supervision of the agreed inspector. Bills of Lading and the certificate set are issued on completion of loading.
Inspection Documentation
Quality and quantity, independently determined.
An internationally recognised inspection company, agreed by both parties, samples and tests product at load port. Its certificates are final for invoicing unless the contract provides otherwise.
Buyer and Seller Responsibilities
| Item | Responsibility |
|---|---|
| Vessel nomination | Buyer (FOB) / Seller (CIF) |
| Freight | Buyer (FOB) / Seller (CIF) |
| Marine insurance | Buyer (FOB) / Seller (CIF) |
| Load-port inspection | As agreed; cost commonly shared |
| Export clearance | Seller |
| Import clearance & duties | Buyer |
| Risk transfer | At loading (both terms) |
Commercial Document Flow
The document set presented for payment.
| Document | Issued by | Purpose |
|---|---|---|
| Commercial Invoice | Seller | Payment |
| Bill of Lading | Master / carrier | Title and shipment |
| Certificate of Quality | Independent inspector | Specification |
| Certificate of Quantity | Independent inspector | Volume and weight |
| Certificate of Origin | Chamber / authority | Customs |
| Ullage Report | Inspector | Quantity verification |
| Insurance Certificate (CIF) | Seller's insurer | Cargo cover |
Commercial Desk
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