20GPÂ (20-foot General Purpose) container is a standard-sized shipping container that is 20 feet long, 8 feet wide, and 8 feet 6 inches high (6.1 meters long, 2.4 meters wide, and 2.6 meters high). It is often used to transport various types of cargo, including dry goods, machinery, and other general merchandise.
40GP (40-foot General Purpose) container is a standard-sized shipping container, but twice the length of a 20GP container. A 40GP container is 40 feet long, 8 feet wide, and 8 feet 6 inches high (12.2 meters long, 2.4 meters wide, and 2.6 meters high). Like the 20GP, it is used for general cargo transportation and is widely used in international trade.Â
AIS (Automatic Identification System) is a tracking system used in the maritime industry to monitor and exchange information between vessels, as well as between vessels and shore-based stations. AIS technology uses VHF radio frequencies to transmit and receive data, allowing ships to continuously exchange information such as their identity, position, course, speed, and other relevant details. This information is collected by AIS transponders installed on ships and is then transmitted to other vessels and shore stations within range. The primary purpose of AIS is to enhance the safety and efficiency of maritime navigation.
AQSIQÂ (General Administration of Quality Supervision, Inspection and Quarantine) is responsible for approving market access applications for feed ingredients and additives (by category or product) to be exported to China for the first time and registering all overseas feed ingredient and additive manufacturing facilities that export to China. Foreign food manufacturers that import food products into China must be registered with the AQSIQ. AQSIQ REGISTERED means that the food product has been approved by AQSIQ and is safe for consumption in China.
ASSAYING refers to the process of analyzing and determining the composition or purity of precious metals, such as gold, silver, or platinum. It involves conducting various tests and measurements to assess the quality and authenticity of the metal. Assaying is commonly performed by specialized laboratories or assayers who use specific techniques and equipment to accurately determine the precise amount of precious metal present in a sample.Â
ASWPÂ (Any Safe World Port) is when a seller specifies that their product can be delivered to “ASWP”, it means that they are willing to deliver the goods to any safe and accessible port in the world that meets the requirements and specifications agreed upon in the contract. This provides flexibility to the buyer and allows them to choose the most convenient and cost-effective port for receiving the goods. The seller is still responsible for ensuring that the goods are delivered safely and in accordance with the terms of the contract.
AU-Dore Bars, also known as gold dore bars, are semi-pure gold bars typically produced at mines as a result of the initial processing of gold ore. The term “dore” originates from the French word “dorĂ©,” which means “golden” or “gilded.” These bars are an intermediate product in the gold refining process.
When gold is mined, it often contains impurities such as silver, copper, or other metals. To remove these impurities and obtain pure gold, the ore undergoes a refining process. The initial step involves crushing and grinding the ore to extract the gold particles. Once the gold is extracted, it is often in the form of a coarse, unrefined material known as dore. AU-Dore bars are formed by melting and combining the gold dore with other metals, such as silver, to create an alloy. The addition of silver is common, as it helps dissolve any remaining impurities and improves the overall quality of the gold. AU-Dore bars are typically irregularly shaped and have a higher purity than the original ore. Their gold content can vary but is generally above 90% pure gold. These bars are then sent to a refinery for further purification and processing to achieve a higher level of purity and to shape them into standardized gold bars or other forms for trading and investment purposes.
AWSPÂ (Any World Safe Port) is a term used in shipping contracts and agreements to designate that the seller is responsible for delivering the goods to any safe port in the world that the buyer designates. The use of the term AWSP provides the buyer with greater flexibility in terms of the port of destination, as it allows the buyer to choose any port in the world that is considered safe for the arrival and handling of the goods. The seller is responsible for arranging and paying for the shipment of the goods to the designated port, while the buyer is responsible for unloading the goods and any costs associated with transporting them from the port to their final destination.
ATB (Authorization To Board) is a document that grants permission to an inspector, surveyor, or other authorized personnel to board a vessel to inspect the cargo, equipment, and documentation related to an oil shipment. The ATB process is an important part of the oil trading transaction, as it allows the buyer to verify the quality, quantity, and other specifications of the oil before it is loaded and shipped. The ATB document typically includes the name and registration number of the vessel, the names of the personnel authorized to board, and the date and time of the inspection.
ATV (Arrival of the Taker’s Vessel) is a term used in the context of crude oil or petroleum product transfers from a shipper to a buyer. It refers to the transfer of ownership and risk of the cargo from the buyer (or taker) to the vessel once the cargo has been loaded onto the vessel. Under ATV terms, the buyer assumes all risks and costs associated with the cargo once it has been loaded onto the vessel. This includes any loss or damage to the cargo during transport, as well as any delays or additional costs incurred due to issues with the vessel or the shipping route. The seller (or shipper) is responsible for loading the cargo onto the vessel in accordance with agreed-upon specifications and quality standards.
BAFÂ (Bunker Adjustment Factor) is a surcharge that may be added to the shipping cost to account for fluctuations in the cost of fuel.
BCL (Bank Comfort Letter) is a document issued by a bank at the request of its customer (usually the buyer) to provide reassurance to the seller that the buyer has the financial means to complete a transaction. A BCL is a form of bank guarantee that assures the seller that the buyer has sufficient funds available to complete the purchase and to pay for the goods according to the agreed-upon terms of the contract.
B/L or BL (Bill of Lading) is a document that serves as a receipt for the goods being shipped and as proof of ownership. It includes information about the goods, the shipping vessel, and the terms and conditions of the shipment.
Bonded Warehouse is a facility that is approved by a government agency to store goods without payment of duties or taxes until they are removed for sale or export. Bonded warehouses are commonly used in international trade to store goods that have not yet been cleared through customs. When goods are stored in a bonded warehouse, they are considered to be “in bond.” This means that they are under the control of the government agency that supervises the warehouse and are subject to its regulations and procedures. Bonded warehouses are commonly used for goods that are imported or exported in large quantities or for goods that need to be stored for a long time before they are sold or transported. They can be operated by private companies or by government agencies, and they are subject to strict security and inventory control measures to prevent theft or loss of goods.
CADÂ (Cash Against Documents) refers to a payment method in international trade where the buyer agrees to make payment to the seller upon presentation of specified documents, typically including shipping documents, proving that the goods have been shipped. In this context, the costs associated with pre-shipment activities are to be lodged in the Seller’s attorney’s Escrow Account, and those costs will be released to the Seller on a Cash Against Documents (CAD) basis before the product leaves the country of export.
Cargo Manifest is a document that provides a detailed list of all the goods that are being transported on a vessel or aircraft. It includes information such as the type of goods, their quantity, weight, and value, as well as the names and addresses of the shipper and consignee.
CCICÂ (China Certification and Inspection Group) is a Chinese government-owned organization that provides inspection, certification, and testing services to businesses involved in international trade. CCIC’s services are used to ensure that imported and exported products meet the required standards for quality, safety, and environmental protection. The organization conducts inspections and tests on a wide range of products, including agricultural commodities, consumer goods, industrial equipment, and hazardous materials. CCIC also issues certificates of inspection, testing, and conformity, which are often required by customs officials in China and other countries as a condition for allowing goods to be imported or exported.
CFRÂ (Cost and Freight) refers to a pricing term used in international trade. When a product is sold on a CFR basis, the seller is responsible for the cost of the goods and the freight charges to deliver the goods to a named port of destination.
CFSÂ (Container Freight Station) is a facility where shipping containers are loaded and unloaded from trucks and other modes of transportation.
CIFÂ (Cost, Insurance, and Freight) is used to indicate that the seller is responsible for the cost of the goods, insurance, and freight charges to transport the goods to the port of destination. The buyer assumes responsibility for the goods and any associated costs once they are delivered to the port of destination.
CIM (Convention Internationale concernant le transport des Marchandises par Chemin de Fer) or in English (International Convention concerning the Carriage of Goods by Rail) is an international agreement that governs the transportation of goods by rail across different countries. The CIM Convention plays a crucial role in facilitating international rail transport of goods, ensuring standardized procedures, and providing legal protection to the parties involved. It promotes efficiency, reliability, and interoperability in rail freight operations, contributing to the smooth movement of goods across borders.
CIQÂ (China Inspection and Quarantine) is a Chinese government agency responsible for inspecting and regulating the quality, safety, and health of imports and exports to and from China. The agency is tasked with enforcing China’s import and export laws, as well as international trade agreements, to protect consumers and prevent the spread of diseases and pests. CIQ inspections typically involve checking product labels, packaging, and quality, as well as conducting laboratory tests and physical inspections. The agency also issues inspection and quarantine certificates for products that meet its standards and requirements, which are often necessary for customs clearance and entry into China.
CIS (Commonwealth of Independent States) is a regional intergovernmental organization that was formed after the dissolution of the Soviet Union in 1991. The CIS comprises 10 member states: Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, and Uzbekistan. The CIS countries have established a free trade zone, known as the CIS Free Trade Area, to promote economic cooperation and integration among member states. The CIS Free Trade Area aims to reduce trade barriers such as tariffs and quotas, and to facilitate the free movement of goods, services, and capital within the region. The CIS also coordinates various trade-related activities among member states, such as standardization and technical regulation, intellectual property protection, and customs cooperation. Additionally, the CIS has established a common customs tariff for goods imported from non-member countries, which helps to promote trade between CIS countries and protect their domestic industries.
CIS Agreement (Commonwealth of Independent States Agreement) is for the supply of a product from the CIS region, which typically includes the terms and conditions of the sale, such as the price, quantity, quality standards, delivery schedule, payment terms, and transportation arrangements. By establishing a CIS agreement, the seller and buyer can benefit from the reduced trade barriers and streamlined customs procedures within the region, as well as the standardized regulations and technical standards that are coordinated by the CIS.Â
CISÂ (Corporate Information Sheet) is a document that provides information about the buyer’s company, including its legal name, address, registration number, and other relevant details. The CIS helps the seller to verify the buyer’s identity and assess their creditworthiness.
CMR (Convention relative au contrat de transport international de marchandises par route) or (Convention on the Contract for the International Carriage of Goods by Road) is an international treaty that governs the rights and obligations of parties involved in road transportation of goods between countries that are signatories to the convention. CMR refers to the standard legal framework that regulates the transport of goods by road across borders. It establishes rules and obligations for carriers, shippers, and consignees involved in cross-border road transportation. The CMR Convention covers various aspects of international road transport, including the carrier’s liability for loss, damage, or delay of goods, documentation requirements, and dispute resolution mechanisms. When goods are transported internationally by road under a CMR contract, a CMR consignment note is typically used. The CMR consignment note is a standardized document that serves as proof of the contract of carriage and contains essential information about the shipment, such as the names and addresses of the sender (shipper), carrier, and recipient (consignee), a description of the goods, and any special instructions or conditions of carriage. In summary, the CMR Convention provides a consistent legal framework for international road transportation, ensuring uniformity and clarity in rights and obligations for all parties involved. It helps facilitate the smooth movement of goods across borders and provides a level of protection and recourse for the parties in case of any disputes or incidents during transportation.
COA (Contract of Affreightment) is a transportation contract between a shipper (often a seller of goods) and a carrier (often a shipping company) for the transportation of a specific quantity of goods over a set period of time. A COA specifies the terms and conditions of the transportation agreement, including the type and quantity of goods to be transported, the ports of loading and discharge, the freight rate, the payment terms, and the responsibilities of each party. A COA is typically used when a shipper needs to transport a large quantity of goods over a period of time, but does not want to commit to a specific vessel or voyage. Instead, the shipper contracts with a carrier to transport a certain amount of goods over a set period of time, usually at a pre-agreed rate. By using a COA, the shipper can secure transportation for their goods without the need to negotiate individual shipping contracts for each shipment. The carrier also benefits by having a guaranteed volume of cargo over a set period of time.
COMEX (Commodity Exchange), is a division of the New York Mercantile Exchange (NYMEX). The NYMEX is one of the world’s largest physical commodity futures exchanges, and COMEX is specifically focused on metals trading, particularly gold and silver. COMEX operates as a platform for trading and hedging precious metals futures and options contracts. It provides a centralized marketplace where participants, including producers, consumers, speculators, and investors, can trade these contracts to manage price risks or take speculative positions.
The primary metals traded on COMEX are:
COMEX provides a transparent and regulated marketplace for metals trading, offering price discovery, liquidity, and risk management tools for market participants. The exchange is regulated by the Commodity Futures Trading Commission (CFTC), ensuring fair trading practices and market integrity.
Concentrate is a high-grade product obtained by processing the ore or mineral material to extract the valuable minerals present. The concentrate typically contains a high percentage of the target mineral and is further processed to remove impurities.
CPAÂ (Charter Party Agreement) is a legal contract between a shipowner or operator and a charterer that outlines the terms and conditions of a shipping agreement. In the context of oil trading, a CPA is commonly used for the chartering of vessels to transport crude oil or petroleum products. A CPA typically includes details such as the duration of the charter, the type and size of the vessel, the agreed-upon freight rate, and the terms and conditions of loading and unloading the cargo. It also covers other important aspects such as demurrage and dispatch, laytime, and the responsibilities and liabilities of the parties involved.
CPAÂ (Contractual Purchase Agreement) is a legally binding contract between a buyer and a seller that outlines the terms and conditions of a transaction. A CPA typically includes details such as the type and quantity of goods or products being purchased, the price, payment terms, delivery terms including delivery schedule and any other important conditions of the transaction.
CTO (Container Take-Out) refers to the process of removing a container from a shipping terminal or depot for transportation to its intended destination. When a container arrives at a shipping terminal or depot, it is typically stacked among other containers awaiting further transportation or customs clearance. When the container is ready to be transported to its final destination, the process of taking it out from the terminal or depot is known as CTO.
CTO (Container Terminal Order) is a document issued by the shipping line or terminal operator to authorize the release of a specific container from the container terminal. When a container arrives at a container terminal, it is typically stored until it undergoes various processes, including customs clearance, documentation verification, and payment of applicable fees. Once these procedures are completed, the shipping line or terminal operator issues a Container Terminal Order (CTO) to the consignee or their authorized representative, allowing them to take possession of the container. The CTO contains important information such as the container number, seal number, consignee details, and any specific instructions for the release of the container. The consignee or their representative presents the CTO to the terminal authorities, who then verify the document and release the container for further transportation or pick-up.
DAP (Delivered At Place) is where the seller is responsible for delivering the goods to a specified destination, usually the buyer’s premises or another agreed-upon location. Under DAP terms, the seller is responsible for arranging and paying for transport to the named place of destination, as well as for any export/import clearance procedures. The buyer is responsible for unloading the goods from the transport and for any further costs and risks associated with the goods from the point of delivery.
DDPÂ (Delivered Duty Paid) is used to indicate that the seller is responsible for delivering the goods to the buyer’s premises and paying any associated import duties or taxes.
Delivery Basis refers to the terms and conditions that define the responsibility for delivering goods from the seller to the buyer. It specifies the location, timing, and method of delivery, as well as who bears the associated costs and risks during transportation. Common delivery basis terms used in international trade include: Ex Works (EXW), Free Carrier (FCA),Free On Board (FOB), Cost and Freight (CFR), Cost, Insurance, and Freight (CIF), Delivered Duty Paid (DDP). These are just a few examples of delivery basis terms commonly used in international trade.Â
Demurrage is a charge that may be assessed if the shipping container is not returned to the shipping company within the agreed-upon time frame.
DIPÂ (Determination of Insoluble Particles) is a test conducted on petroleum products, particularly fuels like diesel and gasoline, to measure the amount of solid impurities or particles present in the fuel. The DIP test involves taking a sample of the fuel and filtering it through a special filter paper. The filter paper is then analyzed for the presence and quantity of insoluble particles. The DIP test is an important quality control measure that helps ensure that the fuel meets the required specifications and standards for use in engines and other equipment. It is often required as part of the inspection process in oil trading or transportation.
DLCÂ (Documentary Letter of Credit) is a financial instrument used in international trade transactions to provide assurance to the seller that they will receive payment for the goods or services they provide. It is a written commitment from a bank on behalf of the buyer, guaranteeing payment to the seller upon the presentation of specified documents that comply with the terms and conditions outlined in the letter of credit. The DLC serves as a secure payment mechanism and helps mitigate risks for both parties involved in the transaction.
D/O (Delivery Order) is a document issued by the shipping line or carrier to authorize the release of cargo to the consignee or their authorized agent. When goods arrive at the destination port, they are typically held at the shipping terminal or port until the necessary customs clearance procedures are completed and the relevant fees and charges are paid. Once these requirements are fulfilled, the shipping line issues a Delivery Order to the consignee or their representative, granting them permission to take possession of the cargo.
DTAÂ (Data Transfer Agreement), or unconditional DTA (Data Transfer Agreement) refers to a legal agreement between the buyer and the seller that allows for the transfer of electronic data related to the transaction. An unconditional DTA means that the transfer of data is not contingent on any conditions or requirements being met by either party.
DTAÂ (Discharge Tanker Approval) or (Discharge Terminal Approval) is when a tanker carrying oil arrives at a port, it needs to obtain DTA or approval from the relevant authorities to discharge its cargo at the terminal. The DTA process involves a detailed inspection of the tanker’s cargo tanks, equipment, and documentation to ensure compliance with international and local regulations. The DTA is issued by the port authority or a designated agency, and it specifies the terms and conditions of the discharge operation, such as the discharge rate, timing, and location. The DTA is a crucial document for oil traders and vessel operators, as it allows them to proceed with the discharge operation and deliver the cargo to the buyer.Â
DPUÂ (Delivered at Place Unloaded)Â specifies the responsibilities of both the seller and the buyer. Under DPU Incoterm 2020:
Seller’s Responsibilities:
Delivery and Transportation: The seller is responsible for delivering the goods, and for all costs and risks involved in bringing the goods to the named place of destination.
Export Formalities: The seller must handle all export customs clearances and any other formalities.
Unloading: Crucially, the seller is also responsible for unloading the goods at the agreed destination.
Buyer’s Responsibilities:
Import Formalities: Once the goods have been unloaded at the named destination, the buyer is responsible for any import duties, taxes, and other charges.
Further Transportation: If the goods need to be transported further from the agreed place of delivery, this is the buyer’s responsibility.
DPU is unique among the Incoterms as it’s the only term where the seller is responsible for unloading the goods at the destination. This term can be used regardless of the mode of transport selected and can also be used where more than one mode of transport is employed. It’s particularly useful in transactions where the seller has direct access to the delivery location, or when the seller is able to manage the unloading process better than the buyer. However, the risk transfers from the seller to the buyer once the goods have been unloaded, so it’s important for buyers to be aware of this shift in liability.
EDI (Electronic Data Interchange) refers to the electronic exchange of business documents, such as purchase orders, invoices, shipping notices, and other transaction-related information, between trading partners in a standardized format. EDI eliminates the need for paper-based documents and allows for seamless and efficient communication and data transfer between different systems and organizations. It enables the automation of business processes, streamlines supply chain operations, and reduces manual data entry, paperwork, and errors associated with traditional document exchange methods. EDI relies on a set of standardized formats and protocols that define the structure and content of the exchanged data. Common EDI formats include ANSI X12, EDIFACT, and XML, among others. These formats provide a common language and syntax for the exchange of information, ensuring compatibility and interoperability between different systems and trading partners.
EN590 10 PPM, EN590, is a standard published by the European Committee for Standardization (CEN) that specifies the requirements and test methods for automotive diesel fuel. “10 ppm” in this context means that the maximum allowed sulfur content in the diesel fuel is 10 parts per million (ppm). This is a very low level of sulfur content and is considered “ultra-low sulfur diesel” (ULSD), which is required for use in most modern diesel engines. The EN590 standard also specifies other requirements for diesel fuel, such as density, viscosity, flash point, cetane number, and lubricity, among others.
ESPO (East Siberia Pacific Ocean) refers to a pipeline and oil export terminal system in Russia that transports crude oil from the East Siberian region to the Pacific Ocean for export to Asian markets, particularly China and Japan. The ESPO pipeline system includes two parallel pipelines that run from the Taishet and Skovorodino oil fields in East Siberia to the Kozmino terminal on the Pacific coast. The pipelines have a total capacity of around 1.6 million barrels per day, making them one of the most significant crude oil transportation routes in Russia. The ESPO system is significant because it allows Russia to diversify its crude oil exports away from Europe and towards the growing demand in Asia. ESPO crude oil is a light, sweet crude oil that is highly sought after by refineries in Asia because of its low sulfur content and high yields of valuable products such as gasoline and diesel fuel.
ETAÂ (Electronic Travel Authorization) is an online system used by some countries to pre-screen travellers before they arrive in the country.
ETAÂ (Estimated Time of Arrival) refers to the expected date and time that the shipping vessel will arrive at the port of destination.
ETDÂ (Estimated Time of Departure) refers to the expected date and time that the shipping vessel will depart from the port of origin.
EXWÂ (Ex Works) is an international trade term used in the context of a sale of goods where the seller’s responsibility for the goods ends at their premises, and the buyer assumes all risks and responsibilities from that point onwards. The seller is not responsible for loading the goods onto the buyer’s transport, but they must provide the goods at a specified location and time and ensure that they are properly packed and labeled for transport.
FAFÂ (Fuel Adjustment Factor) is a surcharge that is added to the freight rates charged by shipping lines to cover the cost of fluctuating fuel prices. Since the cost of fuel can vary significantly over time, shipping lines may adjust the FAF to reflect changes in the cost of fuel. The FAF is typically expressed as a percentage of the freight rate.
FCL (Full Container Load) refers to a type of shipment that utilizes the entire capacity of a shipping container. In FCL shipments, the entire container, whether it’s a standard 20-foot container (TEU) or a 40-foot container (FEU), is exclusively used to transport the cargo of a single shipper or consignee. This means that the shipper pays for the full capacity of the container, regardless of whether it is fully loaded or not.
FCO (Full Corporate Offer) is a formal document used in the negotiation process between buyers and sellers of commodities, such as crude oil, precious metals, and other natural resources. The FCO typically contains detailed information about the terms and conditions of the transaction, including the quantity and quality of the product being sold, the price and payment terms, the delivery schedule and shipping terms, and any other relevant terms and conditions. The FCO usually serves as a binding offer from the seller to the buyer and is considered a critical document in the transaction process.
FEUÂ (Forty-foot Equivalent Unit) is a measure of cargo capacity used in the shipping industry. It refers to the capacity of a 40-foot shipping container and is used to standardize shipping volumes and pricing.
FFA (Freight Forward Agreement) is a financial contract between two parties, typically a buyer and a seller, that allows them to lock in a future price for the transportation of a certain amount of goods. In a Freight Forward Agreement, the parties agree to a future shipping date, a specific route, and a set amount of goods to be transported. The agreement also includes a price, which is based on the current market rate for shipping, as well as a settlement date when payment for the transportation will be made. FFAs are used by traders and shipping companies to hedge against price fluctuations in the freight market. They allow the parties to lock in a future price for transportation, which can help to manage risk and provide greater certainty around the cost of shipping goods. FFAs are typically traded over-the-counter, and they are settled financially rather than through the physical delivery of goods. While FFAs are a financial instrument and not a physical commodity, they are closely tied to the shipping industry and can have a significant impact on the cost of transporting goods.
Fines refer to the small-sized particles of a mineral or ore that are produced during the processing or crushing of ROM material. Fines can be very small, ranging from dust to a few millimeters in size. Fines are typically low-grade material and may be discarded or processed further to extract any valuable minerals present.
FOBÂ (Free on Board) is used to indicate that the seller is responsible for loading the goods onto the shipping vessel at the port of origin. The buyer assumes responsibility for the goods and any associated costs once they are loaded onto the vessel.
FOT (Free on Truck) or (Free on Transport) is a term used in international trade and transportation to indicate that the seller is responsible for delivering goods to a specific location, typically a truck or other transport vehicle. Once the goods are loaded onto the truck, the responsibility for the goods transfers from the seller to the buyer. FOT is typically used in situations where the seller is responsible for delivering goods to a specific point, such as a warehouse or transport hub, but is not responsible for the transportation of the goods beyond that point. The buyer is responsible for arranging and paying for the transport of the goods from the FOT location to their final destination.Â
GACCÂ (General Administration of Customs of the People’s Republic of China) is the government agency in China responsible for the administration and regulation of customs-related matters, including import and export controls, customs clearance procedures, and trade facilitation. The GACC plays a crucial role in overseeing and enforcing customs regulations and policies in China. It establishes and implements customs procedures, collects customs duties and taxes, monitors the movement of goods across borders, and ensures compliance with trade regulations and standards.
GARÂ (gross as received) in the context of coal, is measured in its “as-received” state, i.e., with its natural moisture content and other impurities included.
Gross / Net Price for Petroleum Products: In a gross price, all costs associated with the product are included and not deducted. This means that the price quoted includes all expenses related to the production, transportation, and delivery of the product, and there are no additional charges that the buyer would need to pay on top of the quoted price. Typically, inclusions in a gross price may include: Cost of production, Transportation costs, Insurance, Taxes and depending on the product and the country of origin, the gross price may include applicable taxes such as sales tax, value-added tax (VAT), or import/export duties, and Other charges such as customs clearance fees, brokerage fees, and handling charges may also be included in the gross price.
HCÂ (high carbon) or “high-grade” typically refers to an ore with a chrome content greater than 48%. This type of ore is typically used in the production of high carbon ferrochrome, which is used in the production of specialty steels, alloys, and other high-end products.Â
ICIÂ (Indonesian Coal Index) is a reference price for Indonesian thermal coal. The ICI reflects the spot price of five key grades of Indonesian coal (6,500, 5,800, 5,000, 4,200 and 3,400 kcal/kg GAR) on a gross-as-received basis at various ports in Indonesia.
ICPO (Irrevocable Corporate Purchase Order) is a document used in international trade to express a buyer’s intention to purchase a specific quantity and quality of goods from a seller. An ICPO is typically issued by the buyer to the seller after the parties have agreed on the terms and conditions of the transaction. The ICPO serves as a binding contract between the buyer and the seller, which includes the terms and conditions of the sale, such as the quantity and quality of the goods, the price, the delivery schedule, and the payment terms. Once the seller receives the ICPO, they can begin to process the order and prepare for the shipment of the goods. The ICPO is usually considered a serious commitment from the buyer, as it is typically irrevocable and legally binding. This means that the buyer is obligated to purchase the goods according to the terms and conditions specified in the ICPO, and may be subject to penalties or legal action if they fail to do so.
ICUMSA (International Commission for Uniform Methods of Sugar Analysis) is an international organization that establishes standardized methods for analyzing and assessing the quality of sugar. It sets guidelines and procedures for measuring various parameters such as color, purity, moisture content, and other physical and chemical characteristics of sugar. The ICUMSA rating or ICUMSA number is a measurement used to quantify the color of sugar. It represents the level of purity or whiteness of the sugar, with lower numbers indicating a lighter color and higher numbers indicating a darker color. The ICUMSA number is determined through specific laboratory tests and is used as a reference in sugar trade to specify the quality and purity of sugar.
IMFPAÂ (Irrevocable Master Fee Protection Agreement) is a contract between a buyer’s and seller’s intermediaries, which outlines the fees and commissions that will be paid to each intermediary involved in a transaction. The purpose of an IMFPA is to ensure that each intermediary receives the agreed-upon commission or fee for their services, and to prevent any party from circumventing or withholding payment to the intermediaries. An IMFPA is often used in international trade and finance, particularly in the context of commodities trading or other large-scale transactions. It is a legally binding agreement that can be enforced in court if any party violates its terms.
IMO (International Maritime Organization) is a specialized agency of the United Nations that is responsible for the safety and security of shipping and the prevention of marine pollution by ships. The IMO was established in 1948 and is based in London, UK. The IMO’s main function is to develop and adopt international regulations and standards for shipping. This includes the development of conventions, codes, and guidelines that set out technical and operational requirements for ships, as well as measures to protect the marine environment. The IMO also provides technical assistance and training to member states and collaborates with other international organizations, such as the International Labor Organization and the World Health Organization. One of the IMO’s most important functions is the development of safety and environmental regulations for ships. This includes the SOLAS convention, which sets minimum safety standards for ships engaged in international voyages, and the MARPOL convention, which aims to prevent pollution from ships. The IMO also developed the International Ship and Port Facility Security (ISPS) Code, which sets out security measures for ships and ports to prevent acts of terrorism. The IMO has 174 member states and three associate members. It works closely with the shipping industry, as well as with governments and other stakeholders, to promote safe, secure, and environmentally sound shipping.
INCOTERMSÂ (International Commercial Terms) are a set of standardized international trade terms, which were first introduced by the International Chamber of Commerce (ICC) in 1936 and have since been revised several times to reflect changes in global trade practices. Incoterms are used to clarify the obligations of the buyer and seller in a transaction, including the point at which risk and responsibility for the goods are transferred from the seller to the buyer. They cover issues such as transport, insurance, customs clearance, and payment terms, and provide a common language for international trade transactions. There are currently 11 Incoterms in use, which are divided into two categories:
Each Incoterm specifies the obligations of the buyer and seller, including who is responsible for loading and unloading the goods, who pays for transport and insurance, and who is responsible for customs clearance and other formalities. They also specify the point at which risk and responsibility for the goods are transferred from the seller to the buyer, such as the moment the goods are loaded onto the shipping vessel or the moment they are delivered to the buyer’s premises.
Laden container is when it has been loaded with cargo or goods that are ready for transport. A container is laden, it has undergone the process of packing, loading, and securing the cargo inside it. Once the container is filled and sealed, it is then ready to be transported by various means, such as by ship, truck, or train, to its intended destination. The term “laden” is used to distinguish containers that are packed and loaded from those that are empty and awaiting cargo.
LAIÂ (Loaded and Interested) is a term used to describe a buyer who has already loaded a vessel with crude oil and is actively seeking to sell the cargo to a potential buyer
LBMAÂ (London Bullion Market Association) is an international trade association representing the global over-the-counter (OTC) market for gold and silver. It is a prominent authority in the precious metals industry and plays a crucial role in setting standards, promoting transparency, and facilitating market operations.The LBMA sets industry standards for the quality, purity, and refining of gold and silver, known as the LBMA Good Delivery Lists. These lists define the specifications and requirements for the physical bars that are accepted as standard units in the global market. The LBMA is also responsible for overseeing and administering the London Gold Price and the London Silver Price benchmarks. These benchmarks serve as internationally recognized reference prices for gold and silver trading and are widely used in the global precious metals industry.
LCLÂ (Less than Container Load) is used to indicate that the shipment is not large enough to fill an entire shipping container. The goods will be consolidated with other shipments to fill a container.
LCÂ (Letter of Credit) is a financial instrument used by banks to provide a guarantee of payment to a seller in the event that the buyer fails to fulfill their payment obligations. An LC is a common payment method used in international trade because it provides assurance to the seller that they will receive payment upon shipment of the goods.Â
LCOÂ (Light Cycle Oil) is a by-product of the fluid catalytic cracking (FCC) process used in oil refineries.
LG6Â (Lower Group 6) chromitite layer, is a specific geological formation within the Lower Group of the Bushveld Igneous Complex, in South Africa, where chrome ore is found. This layer is one of several layers within the complex that contain significant deposits of chrome ore, and the ore found in this layer typically contains a chrome content ranging from 30% to 33%. Despite being a lower grade ore compared to other chromitite layers within the complex, LG6 is still an important source of chrome for the production of ferrochrome.
LOIÂ (Letter of Intent) is a document that expresses the intention of one party to do business with another party. An LOI is often used by a buyer to express their intention to purchase a specific quantity of goods or products from a seller. The LOI typically includes details such as the type and quantity of products being sought, the price, payment terms, delivery terms, and any other important conditions of the transaction. An LOI is not a legally binding document and is often used as a preliminary step in negotiating the terms of a transaction. Once the parties agree on the terms of the transaction, a formal contract or agreement is usually drafted and signed by both parties. While an LOI is not legally binding, it is still an important document that can be used to demonstrate the serious intent of the parties to enter into a transaction and can help to establish the basis for a future agreement.
LOIÂ (Letter of Indemnity) is a legal document that may be used in situations where the shipper is unable to provide the original bill of lading (B/L), such as in cases where the B/L has been lost or damaged.
Lumpy material refers to the larger-sized particles of a mineral or ore that are extracted from a mine. Lumpy material is generally higher grade and more valuable than fines. Lumpy ore is typically processed by crushing and screening to separate the valuable minerals from the waste material.
MGÂ (Medium Grade) which refers to a grade of chrome ore that is between low and high grade in terms of quality. MG chrome ore typically has a chrome content ranging from 33% to 38%, which is higher than the chrome content found in LG6 ore. MG chrome ore is an important source of chrome for the production of ferrochrome, which is used in the manufacturing of stainless steel and other products. The specific grade range for MG chrome ore may vary depending on the location and other factors.
MGM (Maximum Gross Mass) or MGW (Maximum Gross Weight) or MAW (Maximum Allowable Weight) are used interchangeably and refer to the total weight of the loaded container, including the weight of the cargo and any packing materials, as well as the weight of the container itself (tare weight). The MGM or MGW or MAW of a container is usually stamped on the container’s door or side, and it is an important consideration for shipping companies, carriers, and freight forwarders because it determines the maximum weight of cargo that can be loaded into the container. Exceeding the maximum gross weight of a container can result in safety risks, damage to the container or cargo, and penalties for non-compliance with weight regulations.
MTÂ (metric ton) is a unit of measurement used for mass or weight. One metric ton is equal to 1,000 kilograms or approximately 2,204.62 pounds.
MT 103 is a type of SWIFT message that is sent by the sending bank on behalf of its customer to the receiving bank, requesting the transfer of funds from the customer’s account to the recipient’s account. The message contains details of the transaction, such as the amount of the transfer, the account numbers of the sender and recipient, and any relevant payment instructions. It is used for both credit and debit transfers and is typically processed within 1-2 business days. The message is sent directly between banks and is not intended for the end customer.
MT199Â message type is used to provide information about the status or confirmation of a previous message sent via the SWIFT network. It is often used in conjunction with other message types, such as MT103 (which is used for international fund transfers) or MT202 (which is used for general financial institution transfers).
Some key points about the MT199 message:
MT 700 is a type of SWIFT message that is sent by a bank on behalf of its customer, usually a buyer or an importer. This message is used to inform the seller or exporter that the buyer’s bank has issued a letter of credit in favor of the seller. The letter of credit serves as a payment guarantee to the seller, ensuring that they will receive payment for the goods or services provided. The MT 700 message includes details of the letter of credit, such as the amount of the credit, the expiration date, the documents required for payment, and any other terms and conditions that apply. The message is sent directly between banks and is not intended for the end customer.
MT 752 is used by banks to communicate the terms and conditions of an LC with deferred payment, where the payment is to be made at a future date after the presentation of compliant documents by the seller/exporter. It allows the parties involved, such as the buyer, seller, and banks, to exchange information regarding the usance period, payment terms, and other relevant details. The MT 752 message typically contains information about the LC, including the parties involved, the usance period, the amount, the documents required for payment, and any amendments or cancellations to the original LC.
MT 760Â is a type of SWIFT message that provides a guarantee or standby letter of credit on behalf of a bank’s customer. This message is used to confirm that the bank is providing a guarantee or letter of credit to a third party, and it assures the third party that payment will be made if certain conditions are met. An MT 760 message is typically sent directly between banks and is not intended for the end customer. The issuance of an MT 760 does not guarantee payment, but rather provides a guarantee or letter of credit that can be drawn upon if certain conditions are met.
MT 700 vs MT 760 The main difference between a SWIFT MT 700 and a SWIFT MT 760 message is that an MT 700 is used for letters of credit, while an MT 760 is used for bank guarantees. The MT 700 is used to provide a payment guarantee to the seller, while the MT 760 is used to provide a guarantee or standby letter of credit to a third party.
MSDSÂ (Material Safety Data Sheet) is a document that provides detailed information about a particular substance or product, including its physical and chemical properties, potential health hazards, and recommended safety precautions. In the context of the oil industry, MSDS documents are used to provide information about the various chemicals and substances used in the production, transportation, and processing of crude oil and petroleum products. The document typically includes information about the chemical composition of the substance, its physical and chemical properties, and its potential health and environmental hazards. MSDS documents also include information about the proper handling, storage, and disposal of the substance, as well as recommended safety precautions for workers who may come into contact with it. This information is important for ensuring the safety of workers, as well as for complying with regulations and standards related to the handling of hazardous materials.
NCNDAÂ (Non-Circumvention, Non-Disclosure, and Confidentiality Agreement) is a contract between two parties that aims to protect confidential information and prevent one party from circumventing or taking advantage of the other. The NCNDA prohibits the party receiving confidential information from disclosing it to third parties without the written consent of the disclosing party. It also prohibits the receiving party from using the information to circumvent the disclosing party in any business transactions or opportunities. An NCNDA is often used in international trade and finance, particularly in the context of commodities trading, to protect the interests of both the buyer and the seller. It is a legally binding agreement that can be enforced in court if either party violates its terms.
NORÂ (Notice of Readiness) is used to indicate that the shipping vessel is ready to be loaded or unloaded at the port.
Off-take agreement between a producer and a buyer for the purchase of a certain amount of a specific commodity or product over a specified period of time. The term is commonly used in the mining, oil and gas, and agricultural industries. In an off-take agreement, the producer agrees to supply a certain amount of the commodity to the buyer, and the buyer agrees to purchase that amount of the commodity at a specified price. This can provide a producer with a guaranteed market for their product, and can provide a buyer with a guaranteed supply of the commodity they need.
OPLÂ (Offshore Petroleum Loading) or (Off Port Limits) refers to the practice of loading or unloading petroleum products from ships outside the port limits, usually in a designated anchorage area or offshore facility.
Ore grade is a measure of the quality or concentration of a mineral deposit. It is typically expressed as a percentage or in parts per million (ppm) of the target mineral present in the ore or mineral material. A higher ore grade generally indicates a more valuable deposit.
Overburden refers to the soil, rock, and other material that covers a mineral deposit and must be removed before mining can begin. Overburden can be of varying thickness and composition, and its removal can be a major cost and environmental concern for mining operations.
Platts is a reference to Platts Oilgram Price Report, which provides daily price assessments for various products. As an oil supply example, “$ Platts Minus 110 USD/Per MT (Gross)” means that the price of the (oil) product is based on the Platts benchmark price minus $110 per metric ton (MT) gross.
PBÂ (Performance Bond) is a type of financial guarantee that a seller provides to a buyer to ensure that the seller fulfills its obligations under a sales contract. The Performance Bond acts as a form of security, protecting the buyer in case the seller fails to deliver the goods or services as specified in the contract.
PGM or PGMs (Platinum Group Metals) are a group of six metallic elements that are chemically and physically similar, which includes platinum, palladium, rhodium, ruthenium, iridium, and osmium. These metals are typically found in the same ore deposits and are often extracted together because of their similar properties. PGMs have a range of industrial applications, including in catalytic converters for automobiles, electronics, and jewelry.
Phytosanitary Certificate (also known as a Plant Health Certificate) is an official document issued by the national plant protection organization (NPPO) of a country to certify that a shipment of plants, plant products, or other regulated articles meets the phytosanitary requirements of the importing country. It is a critical document used in international trade to ensure that the imported goods are free from pests, diseases, and other harmful organisms that could pose a risk to the receiving country’s agriculture and environment.
PMTÂ (per metric ton) which is a common unit of measurement for bulk commodities.
POFÂ (Proof of Funds) refers to documentation or evidence that demonstrates that an individual or organization has the necessary funds to carry out a particular financial transaction, such as buying goods or services, making an investment, or securing a loan. POF may be in the form of bank statements, balance sheets, letters of credit, or other financial documents that provide evidence of available funds. POF is typically required by the recipient of the funds, such as a seller or lender, to ensure that the funds will be available to complete the transaction.
POPÂ (Proof of Product) is a document that provides evidence of the availability and specifications of a product. In the context of commodities trading, such as oil, gas or minerals, a POP may include information about the product’s quantity, quality, origin, specification, and sometimes pictures or samples. The purpose of POP is to provide assurance to the buyer that the product is available and meets the required specifications. It is common practice for the seller to issue a POP to the buyer before the transaction is completed, to give the buyer an opportunity to verify the product’s details and proceed with the transaction accordingly.
POPPÂ (Proof of past performance) is a document or set of documents that demonstrate a company’s track record in fulfilling previous contracts or orders. POPP is commonly used in business-to-business transactions, particularly in the context of government procurement, where companies are often required to demonstrate their ability to deliver on time and on budget.
PPECBÂ (Perishable Products Export Control Board) is a South African government agency responsible for inspecting and certifying the quality and safety of perishable products (such as fruits, vegetables, and meat) that are exported from South Africa. The agency provides services such as inspections, audits, testing, and certification to ensure that exported products meet the quality and safety standards of the destination countries.Â
PPOPÂ (Partial Proof of Product) is a set of documents provided by the seller to the buyer as evidence that the seller has the product they claim to have and is ready to sell it. The PPOP typically includes a range of documents such as a product passport, a statement of availability, a refinery commitment letter, and certificates of origin, quality, and quantity.
Product Passport is a document that provides a detailed description of a product’s characteristics, specifications, and quality parameters. In the context of oil trading, a product passport typically includes information about the crude oil’s API gravity, sulfur content, density, flash point, pour point, and other relevant properties. The purpose of a product passport is to enable buyers and sellers to have a clear understanding of the product being traded and to facilitate the evaluation and pricing of the product. It also helps to ensure compliance with regulatory requirements and international standards. The product passport is usually prepared by an independent inspector or surveyor and is a key component of the PPOP provided by the seller to the buyer.
PSSÂ (Peak Season Surcharge) is a surcharge that may be added to the shipping cost during peak shipping periods when demand is high.
Q88, a vessel Q88 document is a standardized questionnaire used in the shipping industry to collect and share information about a vessel’s specifications and capabilities. The Q88 document covers a wide range of topics related to the vessel’s physical and operational characteristics, including its dimensions, capacity, propulsion system, communication and navigation equipment, and safety features. The Q88 document is typically used by shipowners, operators, and charterers to exchange information about a vessel during the process of chartering or trading it. The document helps to ensure that all parties involved in the transaction have accurate and comprehensive information about the vessel, which can help to reduce the risk of misunderstandings or disputes. The Q88 document is named after the 88 questions it includes, which are organized into several sections covering topics such as vessel particulars, cargo handling equipment, crew information, and certificates and documents. The document is updated periodically to reflect changes in industry regulations or standards, and is recognized as an important tool for facilitating communication and transparency in the shipping industry.
Q&Q Inspection (Quantity and Quality Inspection) is a type of inspection that is commonly used to verify the quantity and quality of a commodity before it is sold and shipped to a buyer. During a Q&Q Inspection, an independent inspector or a third-party inspection company is hired by the buyer or seller to inspect and test the commodity. The inspector takes samples of the commodity and tests them for quality and characteristics such as moisture content, purity, weight, and other specifications. The inspector also measures the quantity of the commodity to ensure that it matches the amount agreed upon in the contract.
RBUÂ (Reflectance Brix Units) is a measurement unit used to express the color of sugar, specifically related to its reflectance properties. The RBU is a method developed by the International Commission for Uniform Methods of Sugar Analysis (ICUMSA) to evaluate the color of sugar. The RBU value is obtained by measuring the reflectance of light at a specific wavelength (usually 420 nm) from a sugar solution and comparing it to a standardized sugar solution. For instance, the ICUMSA 45 RBU value indicates the color intensity or purity of the sugar. A lower RBU value indicates a whiter and more refined sugar. ICUMSA 45 RBU is considered a high-quality sugar with a very low color intensity, often referred to as “premium” or “extra fine” sugar.
Reefer is a term used in the shipping industry to refer to a refrigerated container or vessel used to transport temperature-sensitive cargo such as food, pharmaceuticals, and other perishable goods. Reefer containers and vessels are equipped with a cooling system that maintains a specific temperature range during transportation. The temperature range can be adjusted based on the specific requirements of the cargo being transported. The containers can be equipped with various features such as temperature and humidity monitoring, air circulation systems, and remote monitoring and control systems.
Refractory ore is ore that is difficult or impossible to extract the target mineral from using conventional processing methods. Refractory ore typically has a high concentration of impurities or is composed of minerals that are resistant to standard processing techniques.
RJC (Responsible Jewellers Certificate) refers to a certification program and standard for responsible business practices in the jewelry supply chain. The Responsible Jewellery Council (RJC) is an organization that sets standards and provides certification for responsible practices in the jewelry industry, including gold. The RJC aims to promote ethical, social, and environmental responsibility throughout the entire jewelry supply chain, from mining to retail. It sets forth a set of principles and criteria that jewelry companies must meet to become certified. These criteria cover various aspects such as human rights, labor rights, environmental impact, and responsible sourcing of materials, including gold. The certification process involves an assessment of a company’s practices and procedures by an independent third-party auditor. If a jewelry company meets the RJC’s standards, it can obtain the Responsible Jewellers Certificate, indicating that it has achieved compliance with the RJC’s responsible business practices.
RMAÂ (Relationship Management Application) is a standardized agreement between two financial institutions that outlines the terms and conditions for exchanging messages and information related to international trade finance transactions. The RMA includes information such as the types of messages that will be exchanged, the format and structure of the messages, and the communication channels that will be used. The purpose of the RMA is to establish a secure and efficient communication system between the two banks for processing LCs and other trade finance transactions. An RMA is typically required before banks can exchange messages related to LCs or other trade finance transactions.
ROMÂ (run-of-mine) refers to the raw material extracted from a mine without any processing or sorting. ROM material can include rocks, minerals, and ores of varying sizes and qualities. The term is often used to describe the material that is fed into a processing plant for further treatment.
Ro-Ro (Roll-on/Roll-off) refers to a type of shipping vessel that is designed to transport vehicles and other wheeled cargo by allowing them to be driven on and off the ship.
RWAÂ (Ready, Willing, and Able) is commonly used as a term to indicate that a party is prepared and capable of carrying out a financial transaction, such as making a payment or providing funding.
RWA Bank Letter (Ready, Willing, and Able Bank Letter) is a document issued by a bank at the request of a buyer or seller to demonstrate that they are financially capable of completing a transaction. The RWA Bank Letter is typically used to provide assurance to the other party in the transaction that the buyer or seller has the financial means to fulfill their obligations under the contract.
SAFEXÂ (South African Futures Exchange.) is a derivatives exchange based in South Africa that facilitates the trading of various agricultural and financial futures and options contracts. It provides a platform for market participants to trade agricultural commodities, including maize, wheat, soybeans, sunflower seeds, and more.
SBLC/MT760Â SBLC stands for (Standby Letter of Credit) which is a financial instrument used by banks to provide a guarantee of payment to a beneficiary in the event that the applicant fails to fulfill their payment obligations. An SBLC is typically used in international trade to reduce the risk of non-payment or default. An MT760 is a type of message sent between banks using the SWIFT network, which confirms the issuance of an SBLC.
SGS (SociĂ©tĂ© GĂ©nĂ©rale de Surveillance) is a Swiss multinational company that provides inspection, verification, testing, and certification services to businesses in various industries. SGS’s services are used to ensure that products, processes, and systems meet the required quality, safety, environmental, and social standards. SGS is one of the largest inspection and certification companies in the world.
SIF (Sanitary Inspection File) number refers to a unique identifier assigned to a food manufacturing facility by the relevant regulatory authority or government agency in the exporting country. It is used to indicate that the facility meets specific sanitary and safety standards necessary for exporting food products to other countries. The SIF number is often included on export documentation, such as certificates or permits, and serves as a reference for regulatory agencies in the importing country. It helps ensure that the food products being exported meet the required sanitary and quality standards established by the importing country.
SIFÂ numbers refer to the “Slaughterhouse Inspection and Quarantine Code” or “Registration Numbers for Imported Food Enterprises” or “Food Import Registration Numbers.” These numbers are issued by the General Administration of Customs of the People’s Republic of China (GACC) to registered foreign food manufacturers and exporters who wish to export their products to China.
An SIFÂ number signifies that the facility or company has completed the registration process with the Chinese authorities and meets the requirements for exporting food products to China. The SIF number is an essential component of the import process for food products entering China. It needs to be included in the labeling and documentation of the imported food products. The number is used by Chinese customs officials for tracking, monitoring, and ensuring the compliance and safety of imported food products.
SKRÂ (Safekeeping Receipt) is a document issued by a storage facility or warehouse to confirm that specific goods or commodities are being held in safekeeping on behalf of the owner.
Safekeeping Receipts serve as important documentation in international shipping and trade, allowing for the secure storage and transfer of ownership of goods without the need for physical movement. They provide assurance and transparency in the handling and custody of stored commodities, facilitating various commercial and financial transactions.
SOC (Shipper’s Own Container) or (Shipper-Owned Container) when goods are transported internationally, they are often loaded into containers for efficient handling and transportation. In some cases, the shipper or exporter may choose to use their own container instead of using a container provided by the shipping line. This container is known as a Shipper’s Own Container. Using a SOC can provide certain advantages to the shipper, such as maintaining control over the container and potentially saving on container rental fees. However, it also means that the shipper is responsible for the condition and suitability of the container, including meeting any relevant safety and quality standards.
SOCÂ (Statement of Compliance) is a document that certifies that goods or products comply with specific standards, regulations, or requirements. It is often used in the context of product safety, quality, or technical specifications. A Statement of Compliance can be issued by the manufacturer, exporter, or an authorized third-party certification body.
SOLAS (International Convention for the Safety of Life at Sea) is an international treaty that sets minimum safety standards for ships engaged in international voyages. The SOLAS convention was first adopted in 1914, following the sinking of the RMS Titanic, and has been updated several times since then. The SOLAS convention covers a wide range of topics related to maritime safety, including ship design and construction, fire safety, life-saving appliances, navigation and communications equipment, and cargo handling. It also includes regulations for the safety of personnel on board, such as requirements for medical care, training, and working conditions. SOLAS applies to all ships engaged in international voyages, including passenger ships, cargo ships, and tankers. It is enforced by flag states, which are responsible for ensuring that ships flying their flag comply with SOLAS requirements. Port states may also conduct inspections to ensure compliance with SOLAS, and ships that do not meet the requirements may be detained or prohibited from sailing until the deficiencies are corrected.
SPAÂ (Sales and Purchase Agreement) is a legal contract between a buyer and a seller that outlines the terms and conditions of a transaction for the sale and purchase of goods or services. In the context of international oil trading, an SPA is often used to formalize the terms of a deal for the sale and delivery of crude oil or petroleum products between a producer or supplier and a buyer or distributor. An SPA typically includes details such as the quantity and quality of the product being sold, the price and payment terms, delivery and shipment schedules, inspection and acceptance criteria, and any warranties or representations made by either party. The terms of an SPA can be negotiated and customized to suit the specific needs and preferences of the parties involved, and the contract is usually signed after a period of due diligence and negotiation.
STSÂ (Ship-to-Ship) transfer refers to the process of transferring cargo between two ships while they are in open water. STS procedures are typically used to transfer petroleum products or liquefied gases from one vessel to another.
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network that enables banks and financial institutions to securely exchange electronic messages and financial transactions. SWIFT codes are used to identify specific banks during international transactions, particularly for wire transfers. A SWIFT code is a unique identifier assigned to each financial institution that is a member of the SWIFT network. These codes are used to send and receive funds internationally, and help to ensure that funds are sent to the correct bank and account.
Tailings are the waste material produced during the processing of ore or mineral material. Tailings can include fine particles, slurry, and other byproducts of the processing plant. They are typically disposed of in tailings dams or other storage facilities.
Tare Weight 20-foot Container refers to the empty weight of a container, which can vary depending on the material used to manufacture the container and any additional equipment or features it may have. However, on average, the tare weight of a standard 20-foot shipping container is typically around 2,200 kg or 4,850 lbs.Â
Tare Weight 40-foot Container refers to the empty weight of a container, which can vary depending on the material used to manufacture the container and any additional equipment or features it may have. However, on average, the tare weight of a standard 40-foot shipping container is typically around 3,750 kg or 8,268 lbs.
TEUÂ (Twenty-foot Equivalent Unit) is a standard unit of measurement used in the shipping industry to indicate the capacity of a shipping container. One TEU is equal to the capacity of a 20-foot shipping container.
THC (Terminal Handling Charges) are fees imposed by the terminal operator or port authority for various services related to the handling and processing of containers at the terminal. These charges cover the costs associated with activities performed by the terminal operator, such as container loading and unloading, storage, documentation handling, inspection, security checks, and other terminal-related services. THC fees are typically charged per container and can vary depending on factors such as the size of the container, the duration of storage at the terminal, and the specific services provided by the terminal.
TSAÂ (Tanker Storage Agreement) is a contract between a tanker owner and a customer that allows the customer to use the tanker as a storage facility for their crude oil or petroleum products. The TSA specifies the terms and conditions of the storage arrangement, including the duration of the storage, the quantity of the product being stored, and the payment terms.
TSRÂ (Tanker Storage Receipt) is a document that serves as proof of ownership or control of the crude oil or petroleum products stored on board the tanker. It includes information about the quantity, quality, and location of the product, as well as any applicable terms and conditions of the storage agreement.
TTOÂ (Tanker Takeover) refers to a type of oil trading arrangement where the seller of the oil product is responsible for the delivery of the product to the buyer’s vessel.
TTVÂ (Tank-to-Vessel) transfer involves the loading of crude oil or petroleum products from storage tanks to a vessel or tanker for transportation to another location. During the TTV inspection, an independent inspection company verifies the calibration of the tanks and measures the volume of oil being loaded onto the vessel. The inspection company may use different methods and technologies to measure the volume of the oil, such as ultrasonic or laser equipment. The results of the TTV inspection are recorded in a report that is shared between the buyer and seller as part of the trading process.
Ullage Report is a document that provides information about the amount of space that is available for cargo or other materials in a storage tank or vessel. Ullage refers to the empty space at the top of a storage tank or other container that is not occupied by the substance being stored. In the context of the oil industry, an ullage report is used to determine the amount of oil or other petroleum products that can be safely loaded into a tanker or other vessel without causing overfilling or other safety concerns. The report typically includes information about the total capacity of the storage tank or vessel, as well as the amount of ullage space that is available.
Usance refers to the period of time allowed for payment after the presentation of compliant documents by the seller/exporter. It represents the credit term or the agreed-upon time frame between the buyer and the seller for the payment to be made. For example, if an LC specifies a usance period of 60 days, it means that the buyer has 60 days from the date of receipt of the documents to make the payment to the seller. During this period, the seller can present the required documents to the bank, and once the bank verifies that the documents comply with the terms of the LC, it will release the payment to the seller. The usance period is typically negotiated between the buyer and the seller during the contract negotiation stage and is an important consideration for both parties. The usance period is usually expressed in terms of days, but it can also be in months or any other agreed-upon time unit.
VATÂ (Value Added Tax) a tax that is assessed on the value added to a product or service at each stage of production or distribution. VAT is a type of consumption tax that is commonly used in many countries around the world, including in Europe, Asia, and Africa. Businesses that are registered for VAT are required to collect the tax from their customers on behalf of the government and remit it to the appropriate tax authority. The VAT system is designed to be neutral for businesses, meaning that it should not affect their profitability or competitiveness.
VGMÂ (Verified Gross Mass) refers to the weight of a shipping container, including its contents and any other materials used in the packing process. In 2016, the International Maritime Organization (IMO) implemented a new regulation requiring shippers to provide the verified gross mass of containers before they can be loaded onto a ship. This regulation was implemented to improve safety and reduce the risk of accidents caused by incorrect weight declarations. The VGM must be obtained by weighing the container using calibrated and certified equipment, either by the shipper or by a third party authorized by the national competent authority.