LOC - Is a written undertaking by the buyer or the buyer’s bank known as the issuing bank to pay a certain amount of money to the seller or seller’s bank. The specific Bank makes the payment upon the successful presentation of the required documents by the Seller within the specified time frame. Note that the Bank scrutinizes the "Documents" and not the "Goods" for making payment.
LCL - Less Container Load
LCO - Low Cycle Oil
LDO - Light Diesel Oil
LNG - Liquefied Natural Gas
LPFO - Light Petroleum Fuel Oil (D6)
LPG - Liquefied Petroleum Gas
LSD - Low Sulphur Diesel (D2)
LSFO - Low Sulphur Fuel Oil
LOI - Letter of intent. Document use for the purpose of providing info. on the Buyer's product requirements. It Isn't a binding document
MANDATE - An authorized agent acting on behalf of an undisclosed Principal (Buyer or Seller)
MATB - Marine Authority To Board
MSDS - Material Safety Data Sheet
METRIC TON - A measure of weight equivalent to one thousand
kilogram mass (1,000 kg).
MON - Motor Octane Number
MOQ - Minimum Order Quantity
MOU - Memorandum Of Understanding. Is an agreement between two or more parties outlined in a formal document. It is not legally binding but signals the willingness of the parties to move forward with a contract.
MT - Metric Ton
MT103 - Is a SWIFT payment message type/format used for cash transfer specifically for cross border/international wire transfers
MT199 - Message used by financial institutions to send or receive
information for which another message type is not applicable. Used between a corporate and its financial institution for which another message type is not applicable
MT700 - A Documentary Letter of Credit (DLC) or At Sight Letter of Credit (Sight LC) is a financial instrument, issued by banks or trade finance institutions through a SWIFT MT700 message, where seller/exporters receive payment from the buyer/importer, once the terms specified in the DLC are completely fulfilled.
MT760 - Is a SWIFT Message used to block funds in favor of someone other than the owner, collateralizing the asset via this message while allowing for loans and liens against it. When an MT760 is issued, the issuing bank puts a hold on the client’s funds, blocking the client from using them.
MT799 - Is a simple text message, sent bank to bank. This is used for a bank to bank proof of funds, only. Is not a form of payment and it is not a bank undertaking or promise to pay
NCNDA - Non Circumvention Non Disclosure Agreement.
NOR - Notice of Readiness
OPL - Out Port Limits
PB - Performance Bond (2%).
PLATTS - The organisation internationally recognised and accepted, who publish official quotations of Petroleum products on a daily basis.
PAP - Prices & Procedures
PNG Gas - or Papua New Guinea Gas
POF - Proof of Funds
PPOP - Partial Proof of Product
PTAP - Port Terminal Access Permit
PTCC - Port Terminal Clearance Code
Q&Q - Quality & Quantity
QUID PRO QUO - Something For Something
Q88 - Questionnaires that is used to assess vessel suitability and risk
when chartering tankers
REBCO -Russian Export Blend Crude
R&E - Rollover and Extension (contract)
RFQ - Request For Quote
RON - Research Octane Number; resistance to detonation
RWA - Ready Willing and Able Letter, is a bank instrument that verifies if a bank or financial institution is ready to proceed on behalf of a client in any number of various financial transactions.
SAYBOLT - Is an international inspection agency
SBLC - Standby Letter of Credit, is an arrangement in which a bank guarantees payment to a "beneficiary" if something fails to happen. To do so, the bank issues a document which describes the conditions that will cause the bank will pay.
SCO - Soft Corporate Offer
SGS - Société Générale de Surveillance - is an international inspection
agency / Certificate Of Inspection
SKO - Kerosene Oil
SLOC - Standard Letter of Credit, is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount.
SPA - Sales Purchase Agreement
SPOT PRICE - First Market Price
STA - Leased Tank Storage Agreement
STS - Ship To Ship
SWIFT - Is a vast messaging network used by banks and other financial institutions to quickly, accurately, and securely send and receive information, such as money transfer instructions
TDLC - Transferable Documentary Letter Of Credit
TRANSSHIPMENT - The transfer of oil between vessels
TITLE HOLDER - an authorised Person/s or Company that through contract agreement, has the right to sale or trade a property or on this case commodities, and has the documents to prove it.
TSA - Tank Storage Agreement
TSR - Tank Storage Receipt
T/T - Telegraphic Transfer, is an international wire of funds from the buyer’s bank to the seller’s bank.
TTIA - Tank To Tank Injection Agreement
TTM - Table Top Meeting
TTO - Tanker Take Over
TTT - Tank To Tank
TTV - Tank To Vessel
VTV - Vessel To Vessel
ULSD - Ultra Low Sulfur Diesel
ULSFO - Ultra Low Sulfur Fuel Oil
WTI - West Texas Intermediate (Oil Prices Index)
ASWP - Any Safe Worldwide Port
ASTM - American Society for Testing and Materials, is the institute, internationally recognized, that approved all Standards, Tests and Procedures used in the Oil industry and to be referred in the Agreement to the latest revised edition with amendments in force to date
ATCS - Authorization To Sell & Collect
ATI - Authority To Inject
ATB - Authority To Board
ATS - Authority to Sell
ATV - Authority to Verify
Bbls - Barrels
BCL - Bank Comfort Letter
BOL - Bill Of Lading is a document issued by a carrier (or their agent to acknowledge receipt of cargo for shipment. Although the term historically related only to carriage by sea, a bill of lading may today be used for any type of carriage of goods
BLC - Bank Letter of Credit
BLCO - Bonny Light Crude Oil (from Nigeria)
BG/MT760 - Is an irrevocable commitment issued by a bank on behalf of their customers. Whereas they have entered into a contract to buy goods or perform their projects. BG (Bank Guarantee) is a promise from buyer to meet all financial obligations to the supplier in the event of default.
BPG - Bank Performance Guarantee
BR - Bank Reference
CAD - Cash Against Documents ,are transactions that protect them by ensuring that the products are of the quality promised and in the quantity that was requested. After approving the shipment, the buyer pays the financial institution the pre-arranged amount for the consignment. Once receiving the payment, it is sent to the exporter
CCI - Conditional Commercial Invoice
CDTA - Conditional Dip Test Authorization
CHARTER PARTY AGREEMENT - Is a contract for the hire of a named vessel for a specified period of time.
CI - Commercial Invoice
CI - Compression Ignition
C&D - Cease And Desist
CIF - Cost Insurance, Freight. The seller is responsible for the contract of the carrier and also for the payment of all, costs of pre-carriage, insurance, and delivery of the goods to the named port of destination
CIQ - Customer Information Quality
COA - Certificate Of Analysis
CFPP - Cold Filter Plugging Point
CP - Corporate Profile
CP - Cash Penalty
CPA -Charter Party Agreement - the charter, lease or other agreement that
Seller as the charterer, enters into with the owner of the Vessel for
transporting a Cargo of the Product under the terms of this Agreement.
D/A - Document against Acceptance, an arrangement in which an exporter
instructs a bank to hand over shipping and title documents to an importer only if the importer accepts the accompanying bill of exchange or draft by signing it.
DEMURRAGE - A charge payable to the owner of a chartered ship in respect of failure to load or discharge the ship within the time agreed
DD - Due Diligence
DI - Diesel Index
DLC - Documentary Letter of Credit
D/P - Documents against Payment is an arrangement under which an exporter instructs the presenting bank to hand over shipping and title documents to the importer only if the importer fully pays the accompanying bill of exchange or draft.
DTA - Dip Test Authorization
DTAR - Dip Test Analysis Report
ESCROW ACCOUNT - is a legal concept describing a financial instrument
whereby an asset or escrow money is held by a third party on behalf of
two other parties that are in the process of completing a transaction.
ESPO - East Siberia - Pacific Ocean, crude oil.
ETA - Estimated Time of Arrival
FCL - Full Container Load
FCO - Full Corporate Offer
FIDUCIARY ACCOUNT - Savings or deposit account the funds of which are owned by one party but are managed by another (such as an agent, bank, or trustee) for the owner's, or a beneficiary's, benefit.
FOB - Free On Board, is a term in international commercial law specifying at what point respective obligations, costs, and risk involved in the delivery of goods shift from the seller to the buyer under the Incoterms standard published by the International Chamber of Commerce
FPOP - Full Proof of Product
GTL - Gas To Liquid
HDSO - High Density Silicone Oil
HOBC - Hi-octane Blending compound
HSD - High Speed Diesel
HSFO - High Sulphur Fuel Oil
HSO - Heavy Silicone Oil
ICC - International Chamber of Commerce
ICPO - Irrevocable Corporate Purchase Order
IDLC - Irrevocable Documentary Letter of Credit
INTERMEDIARIES - a person/s or company that intermediates on the sales of commodities between Title Holders and Buyers, Mandate and Buyers etc. for commission revenues
IMFPA - Irrevocable Master Fee Protection Agreement
IMO - The International Maritime Organization is a specialized agency of the United Nations that is responsible for measures to improve the safety and security of international shipping and to prevent marine pollution from ships.
IPL - In Port Limit (Shipping).
IPOP - Initial Proof Of Product
IRDLC - Irrevocable Revolving Documentary Letter of Credit. Payment by
Irrevocable, Transferable, Auto-Revolving for one month’s shipment value, Documentary Letter of Credit
IS - Injection Schedule
JV - A joint venture is a business arrangement in which two or more parties
agree to pool their resources for the purpose of accomplishing a specific
task. This task can be a new project or any other business activity.
KYC - Know Your Customer
LAYCAN - This is the abbreviation used for the “Laydays and Cancelling Clause” in a charterparty. The clause provides for the earliest time when the charterer expects the master of the vessel to give a Notice of Readiness and for laytime to commence and also gives the charterer an option to cancel the charter if this event does not occur before a certain date.