FOB transaction procedures with petroleum products in key world ports: Rotterdam, Fujairah, Houston.

 

International trade in petroleum products is a key element of today’s global economy, driving price trends and providing energy security for countries and regions. In this article, we will focus on FOB (Free On Board) in-port fuel sales and purchases, highlighting the most common procedures associated with these transactions, as well as the risks that may arise for both customers and suppliers during the implementation of these procedures. We will detail information on what to pay special attention to when dealing with various procedures, what are the hidden nuances and possible frauds, what risks arise when using these or those procedures, and how to maximise efficiency in such transactions.

The FOB transaction procedure in the oil products sector, in its classical form, implies that the supplier sells his oil products in his port of departure and the buyer charters a vessel and sends it to the seller’s port for loading.

Historically, many large world ports have grown, more and more oil storage facilities have been built inside the port and some world ports have become like huge trading platforms, where transactions are carried out even without loading ships, but inside the port – where the seller pumps oil products from his oil storage facility to the buyer’s oil storage facility inside one port. Such global hubs for oil products trading are the ports of Rotterdam (Netherlands), Fujairah (UAE), Houston (USA), Singapore and others.

To read the full article on FOB petroleum products transaction procedures at key ports around the world: Rotterdam, Fujairah, Houston, please follow this link on REFRAT's website.

 

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