Introduction — Buyers Don’t Know Which Procedure Is “Real” (And That’s Why Deals Collapse)

In 2025, EN590 & Jet A1 buyers are flooded with competing procedures:

• FOB (Free On Board)

• CIF (Cost, Insurance & Freight)

• TTT (Tank-to-Tank)

• TTV (Tank-to-Vessel)

But most buyers don’t know which is safe, which is institutional, and which is used by real refineries, tank farms, and title holders.

This confusion creates:

• Misaligned procedures

• Fake seller exposure

• Endless negotiation loops

• Requests that violate terminal rules

• Buyer frustration and deal failure

This article provides the full institutional breakdown of each method, explains which procedure is safest, and shows how NNRV structures real transactions.

SECTION 1 — Understanding the Context (Macro + Industry)

1.1 The Global Market Has Zero Tolerance for Improvised Procedures

Refineries, terminals, and vessel operators follow strict rules:

• Incoterms 2020

• IFC port regulations

• ISPS vessel security

• FATF AML & Basel III

• Tank farm operational laws

• SGS/Intertek Q&Q protocols

• SWIFT-based POF and payment standards

Any petroleum procedure must comply with these frameworks.
Anything outside these rules = fake seller procedure.

1.2 Why Procedures Matter More Than Price

A good buyer will lose their deal if they:

• Ask for the wrong procedure

• Request actions that violate terminal rules

• Demand POP at the wrong time

• Reject the seller’s mandated method

• Mix CIF/FOB/TTT steps incorrectly

Many buyers mistakenly think:

“Price is the most important part.”

Wrong.
Procedure determines whether the deal exists at all.

1.3 The 2025 Rule

👉 In 2025, procedures define credibility.
👉 The safest procedure = the one fully controlled by secured logistics + terminal compliance.

This is why some procedures are inherently safer than others.

SECTION 2 — Full Explanation of the 4 Procedures (A to Z)

Let’s break down each procedure technically and institutionally.

⚓ 1. FOB — Free On Board (Loading at Seller’s Port)

Definition

The seller loads the product on the buyer’s vessel at the designated port (Rotterdam, Houston, Novorossiysk, Kuwait, etc.).

Who Controls Logistics?

• Seller → tank, port logistics, loading

• Buyer → vessel, freight, insurance

Payment Structure

• MT103 after Q&Q

• OR LC/SBLC MT700/MT760

• OR escrow depending on seller

POP Timing

Partial POP after SPA, full POP at loading.

Advantages

• Lowest premium

• Transparent

• Seller carries loading risk

• Ideal for large buyers with vessel control

Risks

• Buyer must secure vessel

• Port congestion risk

• Weather delays

Who Uses FOB?

• Refineries

• Terminal allocators

• Major suppliers

🟩 FOB = Safe if buyer has vessel + institutional bank

⚓ 2. CIF — Cost, Insurance & Freight (Delivered to Buyer’s Port)

Definition

Seller ships cargo to buyer’s port (e.g., Lagos, Tema, Jebel Ali).

Who Controls Logistics?

• Seller controls vessel, freight, insurance

• Buyer receives at destination

Payment Structure

Typically LC MT700 or SBLC MT760 (strict).

POP Timing

POP at loading + vessel tracking.

Advantages

• Good for less experienced buyers

• Seller manages freight

• Lower operational burden for buyer

Risks

• High premium

• Requires strong seller

• LC must be flawless

• High fraud exposure if seller is not refinery-aligned

Who Uses CIF?

• Sellers with large export quotas

• Government contracts

• Institutional buyers

🟨 CIF = Safe but ONLY with real refinery-backed sellers

⚓ 3. TTT — Tank-to-Tank (Local Transfer at Terminal)

Definition

Product is transferred from seller’s tank → buyer’s tank in the same terminal (Rotterdam, Fujairah, Jurong, Houston).

POP Requirement

POP → DTA → DIP test → Q&Q → Title Transfer

Who Controls Logistics?

• Terminal

• Seller logistics

• Buyer tank farm

Advantages

• Product verified physically

• DIP test before payment

• No vessel required

• Extremely secure

• Low risk of fraud

Risks

• Tank availability

• Buyer must have own tank

• Terminal scheduling delays

Who Uses TTT?

• Professional buyers

• Traders with tank contracts

• Fuel distributors with inventory rotation

🟩 TTT = Safest procedure in the world (institutional standard)

⚓ 4. TTV — Tank-to-Vessel (Seller’s Tank → Buyer’s Charter Vessel)

Definition

Product moves from tank to buyer’s vessel at terminal.

POP Requirement

Same as TTT, but buyer must charter vessel.

Advantages

• DIP test before loading

• Vessel control advantage

• Lower premium than CIF

Risks

• Vessel nomination

• Demurrage risk

• Terminal delays

• Requires buyer marine expertise

Who Uses TTV?

• Experienced traders

• Buyers with steady maritime operations

🟩 TTV = Very safe (nearly as secure as TTT)

SECTION 3 — NNRV Professional Analysis: Which Procedure Is Actually Safest?

Ranked from Most Safe → Least Safe:

Why TTT Is the Safest

1. Buyer sees the product before payment

2. DIP test results verified

3. Terminal (Vopak/Oiltanking/VTTI) acts as third-party safeguard

4. No vessel delays

5. No delivery risk

6. No insurance manipulation

TTT is the preferred method for:

• Major traders

• Real title holders

• Institutional allocations

• Banks monetizing SBLC-backed inventory

Why CIF Is the Most Dangerous (Unless Seller Is Real)

CIF is legitimate but high-risk because:

• Fraudsters love it

• LC can be manipulated

• No DIP test before loading

• Buyer cannot verify product at origin

• Freight and insurance costs can be inflated

NNRV only recommends CIF with:

• Known refineries

• Long-term allocation sellers

• Government or corporate deals

Why FOB Is Often the Most Misunderstood

FOB is safe but buyers misunderstand the vessel burden:

• Vessel nomination

• NOR

• ETD/ETA

• Charter party compliance

• Marine insurance

FOB requires experienced maritime operations.

SECTION 4 — Step-by-Step Comparison Timeline (Day 1–30)

FOB Timeline

1. ICPO → SCO

2. SPA

3. Partial POP

4. Buyer vessel arrives

5. Q&Q

6. MT103

7. Loading

CIF Timeline

1. ICPO → SCO

2. SPA + LC MT700

3. Partial POP

4. Vessel loading

5. Freight to buyer

6. CI + MT103

7. Discharge

TTT Timeline

1. ICPO

2. SPA

3. Partial POP

4. DTA

5. DIP test

6. MT103

7. Tank transfer

TTV Timeline

1. ICPO

2. SPA

3. Partial POP

4. DTA

5. DIP test

6. Buyer vessel arrives

7. Loading

SECTION 5 — Buyer & Seller Questions (20 Total)

10 Buyer Questions

1. Which procedure gives DIP test before payment? (TTT/TTV)

2. Which method is cheapest? (FOB)

3. Which method is most secure? (TTT)

4. Why do sellers refuse CIF LC?

5. Does CIF guarantee product?

6. Can TTT be done without buyer tank?

7. Why is TTV more complex than TTT?

8. Why do some sellers avoid FOB?

9. Is CIF safe with unknown sellers? (No)

10. Which method gives fastest delivery? (TTT)

10 Seller Questions

1. Should seller accept TTT if buyer has no tank? (No)

2. Should seller accept FOB if buyer has no vessel? (No)

3. Why avoid CIF for unknown buyers?

4. Does TTV expose tank information?

5. Can sellers demand “CIF upfront fee”? (Never)

6. Which method protects seller the most? (FOB/TTT)

7. Should seller accept buyer procedure?

8. Is DTA mandatory for TTT? (Yes)

9. Should seller provide POP before SPA? (No)

10. Does CIF require extra insurance? (Yes)

SECTION 6 — Proof & Institutional Credibility

These guidelines reflect standard practices from:

• Vitol

• Trafigura

• Gunvor

• Glencore

• Mercuria

• Shell Trading

• TotalEnergies

Terminals:

• Vopak

• Oiltanking

• VTTI

• Koole

Maritime law:

• Incoterms® 2020

• ISPS Security Codes

• IBC Rules

Banks:

• MT103

• MT799

• MT760

• MT700

This is the global petroleum standard.

SECTION 7 — Professional Call to Action (CTA)

📌 Need Help Choosing the Correct Procedure for Your EN590/Jet A1 Deal?

NNRV Trade Partners provides:

• Full procedural analysis (TTT/TTv/FOB/CIF)

• Contract structuring

• SPA & POP validation

• Compliance alignment

• SWIFT workflow guidance

• Seller & refiner due diligence

• Buyer protection for all transactions

📩 info@nnrvtradepartners.com
🌐 www.nnrvtradepartners.com

Mini FAQ (5 Key Questions)

1. Which procedure is safest in 2025?
   TTT → Tank-to-Tank.

2. Which is cheapest?
   FOB.

3. Which is best for new buyers?
   CIF (only if seller is real).

4. Which gives DIP test before payment?
   TTT & TTV.

5. Can NNRV verify which procedure is legitimate?
   Yes — we specialize in it.

Why Choose NNRV Trade Partners?

• Institutional petroleum expertise

• Real refinery-aligned sellers

• Zero-fraud procedures

• Full compliance & SWIFT support

• End-to-end deal management

• Trusted globally by buyers & sellers