CIF vs FOB - Petroleum Products

February 22, 2021
Let's talk about the reasons why CIF deals are always more lucrative than FOB deals.

We all aspire to be successful. Success is sure to come through dealing with our refinery seller on a CIF basis, not with fake/scam FOB or vessel takeover proposals, if we are fortunate enough to deal with genuine end buyers.

FOB transactions need the following; A dedicated TSA from VTTI, KOOLE, or Royal Vopak is required for tank-to-tank procedures. The major multi-national buyers all have lengthy leasing agreements. Others do not understand. Buyers fail to furnish principals letters on a subleased basis. As a result, the majority of TSAs are frauds.

Regarding Tank-to-Vessel,At the port, a licensed CPA is necessary along with a NOR from the shipping operator. It necessitates giving the shipping operation a 50% down payment.

No buyers from the secondary markets, including end users, exit buyers, resellers, or flippers, reserve TSA or CPA in advance in either situation.

Therefore, most of the FOB deals fail. But this is not the case with major multinational buyers.

They employ refinery TSAs or have long-term dedicated TSAs since they have contracts with refineries.
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The greatest option is CIF, as purchasers can cut money on shipping and other expenses.

Lifting the FOB transactions requires a minimum of 10 to 12 days at most.

If the customer enters into a CIF contract within this time, the first delivery will happen within 25 days at the most, depending on the destination port.

The second shipment schedule can be shortened to every two months.

CIF would be a straightforward and easy transaction.

Save time, maintain your trust, and avoid time wasters by filtering out the phony.
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If you choose to seek information from social media platforms, you will continually be let down since you will waste time, money, and resources while also suffering for yourself and your family.

We can at least begin to establish a level of contact with RFQ, Seller offer, and KYC for both sides.

Please consult verified end users, exit purchasers, and re-sellers/flippers (with reduced commission GREED).

False sellers and con artists set their prices extremely low and charge exorbitant commissions. Avoid falling for the trap. You will experience numerous failures, lose the faith of potential customers in the end, and have your documents taken by con artists.