TTV FOB PROCEDURE – Gas Oil
Incoterms: FOB Incoterms® 2020, named load port. Tank-to-vessel is the loading method, not a separate Incoterm.
Load port: Fujairah, Jurong, Rotterdam, Batumi, Kulevi, or another port agreed in the SPA, subject to tank availability.
Quantity: As agreed in the SPA (usual operational tolerance ±10%).
Price: Platts (or other agreed marker) related, FOB named load port, minus/plus agreed differential.
Price settlement: Marker quotations around Bill of Lading date, as stated in the SPA (commonly B/L date, or 2-1-2 / 3-2 around B/L if no quote on B/L date). Rounded to two decimal places.
Inspection: Independent inspector (SGS / Intertek / Saybolt or equivalent) at seller tank and/or at loading — binding for quantity, quality and invoicing.
Payment: Irrevocable documentary letter of credit (MT700), payable against conforming FOB shipping documents and load-port Q&Q certificate. Confirmation only if agreed. SBLC (MT760) only if both parties agree in the SPA. Loading does not start without an operative instrument.
Offer: Subject to product and tank. Price and load window fixed in the SPA before nomination.
This page describes a normal spot FOB tank-to-vessel cargo between principals. It is not a substitute for the signed SPA.
What FOB TTV means here
Seller delivers when the product is on board the buyer’s nominated vessel at the named load port.
Risk passes to Buyer at that point.
Buyer pays ocean freight from the load port and arranges marine cargo insurance.
Seller pays the cost of bringing the product to the vessel and of loading.
Title passes as set out in the SPA (typically on payment or on endorsement of the bills of lading).
Buyer handles import clearance, duties and discharge-port costs.
Contract terms are the Special Provisions in the SPA, plus any GTC the parties actually agree (BP, Shell or other). The SPA specials prevail.
Procedure
- Inquiry and firm terms
Buyer states product, volume, preferred load port and target window.
Seller replies with specification, available tank/port, price formula and payment basis.
Both sides exchange KYC. No binding deal until the SPA is signed.
- SPA
SPA covers: product and spec, quantity and tolerance, price formula, load port, load window, inspection, documents, payment, demurrage at load, law and arbitration.
Both parties sign. Brokers, if any, receive a copy.
- Proof that can be checked
Seller provides unredacted tank evidence the buyer can verify with the terminal or tank operator: current tank receipt or equivalent terminal confirmation, tank number, grade and last independent Q&Q if available.
Seller does not ask for a charter party, tank-extension fee or “commitment” payment at this step.
MT799 / MT199 is not proof of product.
- Inspection at tank
Seller arranges terminal access for the buyer’s inspector at no charge to the buyer.
The only cost to the buyer is the inspector’s invoice.
The Q&Q report is sent by the inspector to both principals and is binding.
If the product is off-spec or access is refused, the lift stops. Seller refunds the inspection cost.
- Letter of credit
Buyer’s bank issues an irrevocable documentary LC (MT700) as per the SPA, FOB named load port.
Seller’s bank checks the LC. Loading does not start on a defective instrument.
Seller does not inject cargo, issue shipping documents, recent Q&Q or bills of lading before an operative LC is in place. That is the working security — not tank receipts or “proof of product” packs.
SBLC only if both parties agree in the SPA. Transferable LCs only if the structure requires them.
- Vessel and loading
After the LC is operative, and after a clean Q&Q (or after the buyer has accepted the current independent Q&Q in writing), the buyer nominates the performing vessel (name, IMO, flag, Q88, load-port agent, NOR / ETA).
Seller accepts or rejects the nomination within the time in the SPA, and only on reasonable grounds.
Cargo is loaded tank-to-vessel in the agreed window. Loading Q&Q is taken and is binding for the invoice.
No load without an operative LC or other payment instrument expressly accepted in the SPA.
- Documents and payment
After sailing, Seller presents to the LC bank, typically:
Full set of clean on-board bills of lading, freight collect, to order
Commercial invoice for the loaded quantity, FOB named load port
Load-port certificate of quantity and quality
Certificate of origin
Ullage / shore-tank comparison as customary at that terminal
Documents must match the LC. Insurance certificate is not an FOB document. Extra papers (full charter party, manifest, etc.) only if the SPA or LC requires them.
If documents comply, the bank pays under the LC.
Seller endorses bills of lading as required.
Any agreed quality/quantity adjustment after discharge is settled separately under the SPA.
- Sailing
Vessel sails when loading is complete and documents stand as agreed in the SPA.
Title passes as set out in the SPA (typically on payment under the LC or on endorsement of the bills of lading).
Notes
No side fees, terminal “facilitation” or extra POP charges outside the SPA.
FOB price is a load-port price. Do not add freight and insurance into an FOB Platts marker. Insurance is Buyer’s account and is not an LC document.
Transferable LCs and SBLCs are tools for a specific structure. They are not the default for a principal-to-principal FOB cargo.
No injection and no B/L without an operative LC (or other instrument named in the SPA).
A charter party is not requested before product is proven by independent Q&Q.
ATSC letters, hub numbers, booking numbers and “PPOP packs” are not title. Title is the tank confirmation, then the B/L after loading.
Documents not issued or confirmed from an @ametheus.com mailbox are unauthorised.
Law and arbitration are whatever the SPA states (English law / LCIA or ICC is common for this trade).
Product is offered only if available and only from non-sanctioned origin.
Email: [email protected] | [email protected]
Disclaimer: We do not accept or source fuel or petroleum products from sanctioned countries.
