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1. CONSIGNEE
In diesel trading, the consignee is the entity that receives the shipment of
diesel fuel. This can be an individual, a company, or even a government
agency. The consignee's responsibilities include:
● Accepting the shipment: Ensuring the diesel fuel is delivered to the
correct location.
● Verifying the shipment: Checking the quality and quantity of the diesel
against the purchase order.
● Managing documentation: Handling all necessary paperwork, such as
bills of lading and customs declarations.
● Releasing payment: Paying the shipper once the diesel fuel is verified
and accepted12.
The consignee plays a crucial role in the supply chain, ensuring that the diesel
fuel is delivered efficiently and meets all contractual and legal requirements.
2. What (or who) is TSR in a diesel transaction?
In a diesel transaction, TSR stands for Tank Storage Receipt. This
document is crucial as it verifies that the buyer has secured storage space
for the diesel fuel at the designated storage facility. The TSR is typically
required before the seller proceeds with the transfer of the fuel12.
3. What is ATV and DTA in a diesel trading transaction
In a diesel trading transaction:
• ATV stands for Authorization to Verify. This document allows the
buyer to verify the product’s quality and quantity before proceeding
with the transaction1.
• DTA stands for Dip Test Authorization. This document permits the
buyer to conduct a dip test to confirm the fuel’s quality and quantity in
the seller’s storage tanks2.
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These documents are essential to ensure transparency and trust between the
buyer and seller during the transaction process.
4. How big is the general tank size in Jurong Port tank farm?
The tank sizes at Jurong Port Tank Terminals vary significantly. They range
from 5,500 cubic meters (cbm) to 31,000 cbm1. This allows for flexible
storage options to meet different needs.
5. How to convert from cbm to metric ton for diesel tank?
To convert cubic meters (cbm) to metric tons (mton) for diesel, you need to
know the density of diesel. The density of diesel is approximately 0.85
metric tons per cubic meter. So, 10 cubic meters of diesel would be
approximately 8.5 metric tons.
6. What does Q&Q means in diesel trading?
In diesel trading, Q&Q stands for Quality and Quantity. This term refers to
the inspection process that verifies both the quality and the quantity of the
diesel fuel being traded. The inspection is typically carried out by an
independent third-party agency, such as SGS or a similar organization, to
ensure that the fuel meets the agreed-upon specifications and that the
quantity matches the contractual terms.
7. What is tank extension in diesel trading?
In diesel trading, a tank extension typically refers to the extension of the
lease or rental period for storage tanks. This can occur when the buyer or
seller needs additional time to store the diesel fuel beyond the initially
agreed-upon period. Reasons for requesting a tank extension might
include delays in transportation, changes in market conditions, or logistical
issues.
The process usually involves negotiating new terms and possibly additional
fees for the extended storage period. Ensuring clear communication and
updated documentation is crucial to avoid any misunderstandings or
disputes.
8. What is ATV & OTA PROCEDURE in diesel trading?
In diesel trading, the ATV & OTA procedure involves specific steps to
ensure the transaction’s transparency and security:
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• ATV (Authorization to Verify): This document allows the buyer to
verify the product’s quality and quantity before proceeding with the
transaction. It ensures that the buyer can confirm the diesel meets the
agreed specifications1.
• OTA (Offer to Accept): This is a formal offer from the seller to the
buyer, outlining the terms and conditions of the sale. It includes details
such as the price, quantity, and delivery terms. The buyer must accept
this offer to proceed with the transaction2.
The procedure typically follows these steps:
a) Buyer submits an ICPO (Irrevocable Corporate Purchase Order)
along with POF (Proof of Funds) and NOR (Notice of Readiness)
to the seller.
b) Seller responds with a confirmation letter of fuel availability.
c) Seller issues a Joint Participation Agreement (JPA).
d) Upon receipt of the signed JPA, the seller issues a Commercial
Invoice (CI).
e) Seller issues a DTA (Dip Test Authorization) for the buyer to verify
the product’s quality and quantity.
f) Upon successful verification, the seller arranges the fuel transfer
to the buyer’s tanks.
g) Buyer confirms the complete transfer of fuel and releases
payment to the seller21.
h) This procedure ensures that both parties are protected and that
the transaction is conducted smoothly and transparently.
