Oil Trading Flow Chart

1. Loading Port (Origin)

• Step 1: Product Availability
  • Diesel stored in refinery/terminal tanks.
  • Seller provides Proof of Product (POP) docs (tank receipts, quality report).
• Step 2: Contract Finalization
  • Buyer & seller agree on terms (FOB/CIF).
  • Tanker (e.g., MR/LR class) arranged.
• Step 3: Pre-Loading Inspection
  • Independent inspector (e.g., SGS) checks:
    ✅ Quality (sulfur, cetane number).
    ✅ Quantity (tank gauging/flow meters).
  • Certificates (COQ & Quantity) issued.
• Step 4: Loading
  • Diesel pumped into vessel.
  • Bill of Lading (BOL) issued.
  • Vessel departs after customs clearance.

2. Transit (Sea Voyage)

• Step 5: Transportation
  • Tanker sails to discharge port (10–30 days).
  • Seller sends shipping docs (BOL, COQ) to buyer/bank.

3. Discharge Port (Destination)

• Step 6: Arrival
  • Tanker arrives; buyer notified via AIS tracking.
• Step 7: Customs Clearance
  • BOL, import permits, COQ reviewed.
  • Duties/taxes paid → cargo cleared.
• Step 8: Unloading
  • Diesel pumped to port buffer tanks or pipelines.

4. Storage Tank Injection

• Step 9: Transfer to Buyer’s Tank
  • Diesel moved (pipeline/truck/rail) to buyer’s storage.

5. DIP Test (Critical!)

• Step 10: Quality & Quantity Check
  • Quantity: Dip stick/flow meters measure volume.
  • Quality: Lab tests (e.g., SGS) vs. original COQ.
  • Inspector issues final Q&Q report.

6. Payment

• Step 11: Buyer Pays
  • If DIP test matches contract:
    • Payment via LC/wire transfer/escrow (2–5 days).
  • Seller receives funds; ownership transferred.

7. Final Storage

• Step 12: Diesel Ready!
  • Stored in buyer’s tank.
  • Tank receipts issued → diesel distributed (fuel stations/industry).

Visual Summary (Text-Based Flow):

Loading Port → Transit → Discharge Port → Storage Tank → DIP Test → Payment → Distribution

Key Docs: POP → COQ → BOL → DIP Report → Payment Proof.

Key Checks: Quality (2x), Quantity (2x), Customs, Payment.