What the buyer specifies
- Refining specification, including free fatty acids, moisture and impurities
- Quantity and shipment programme
- Bulk, flexitank or other acceptable delivery format
- Required sustainability certification, such as RSPO, MSPO or ISCC
- Preferred origin and permitted alternatives
- Destination terminal, receiving constraints and shipment window
- Inspection, documentation and payment requirements
Any figures discussed before a live offer are indicative. The final specification, origin, quantity, packing, inspection method and shipment schedule are agreed by the contracting buyer and seller.
Origin and delivery planning
Suitable origins are assessed against the buyer’s specification, quantity, shipment window, destination and landed economics. The live offer identifies the proposed producer or seller, country of origin, load point, quantity and route.
Each proposed transaction is reviewed using the actual origin, counterparties, banks, vessel or carrier, route and destination.
The parties select the appropriate Incoterms® 2020 rule only after confirming the transport mode and exact named port or place. FOB, CFR or CIF may suit sea or inland-waterway movements; FCA, CPT or CIP may suit containerised or multimodal movements. Terminal compatibility, tank condition, heating needs, discharge access and storage capacity must be confirmed for the particular cargo.
Inspection and documents
The documentary file may include a certificate of analysis, certificate of origin, weight or quantity evidence, independent inspection and any agreed sustainability records. Food-safety, customs and import requirements are destination-dependent.
Product, import, inspection, customs and documentation requirements are confirmed for the actual destination, importer and declared end use.