Tank-to-Tank vs Tank-to-Vessel vs CIF
Which structure fits your bank, budget & timeline?
Hidden buyer question:
“Which structure is actually realistic for me — not just attractive on paper?”
Introduction — Structure Is More Important Than Price
Most commodity buyers focus on price.
Professional sellers focus on structure.
In EN590, Jet A1, LNG, and bulk commodities, the transaction structure determines:
- Whether your bank participates
- Whether inspection is allowed
- Whether title can transfer
- Whether the deal closes at all
Tank-to-Tank (TTT), Tank-to-Vessel (TTV), and CIF are not interchangeable.
Each one fits a different buyer profile.
1. Tank-to-Tank (TTT)
What it is:
Title transfers inside a storage terminal tank. No vessel is involved at the transaction stage.
How it works (simplified):
- Product is already in a terminal
- Buyer pays against title transfer
- Buyer later arranges lifting
What banks think:
- High-risk if buyer lacks experience
- Title verification is critical
- Often rejected by mid-tier banks
What sellers think:
- Fast for experienced buyers
- Dangerous with new buyers
- High rejection rate for ICPOs
Who TTT is for:
- Buyers with terminal relationships
- Buyers who understand title chains
- Buyers with strong banks
Reality check:
TTT looks simple.
It is not.
2. Tank-to-Vessel (TTV)
What it is:
Title transfers during loading from tank to vessel.
How it works:
- Product sits in terminal
- Buyer nominates vessel
- SGS conducts Q&Q during loading
- Title transfers at flange or manifold
What banks think:
- Cleaner risk profile
- Clear inspection point
- Preferred over TTT
What sellers think:
- More operational work
- Lower fraud risk
- Higher execution certainty
Who TTV is for:
- Buyers with shipping access
- Buyers using LC structures
- Buyers who want SGS certainty
Reality check:
TTV is the most balanced structure.
3. CIF (Cost, Insurance & Freight)
What it is:
Seller delivers cargo to buyer’s destination port.
How it works:
- Seller controls vessel
- Seller controls insurance
- Buyer pays against shipping documents
What banks think:
- Most familiar structure
- Document-driven
- Easier LC compliance
What sellers think:
- Higher operational cost
- More exposure
- Requires serious buyer
Who CIF is for:
- Buyers without shipping capability
- Buyers using standard MT700 LC
- Buyers prioritizing simplicity
Reality check:
CIF is expensive — but realistic.
4. Timeline Comparison
- TTT: Fast on paper, slow in reality
- TTV: Medium speed, predictable
- CIF: Longer lead time, fewer surprises
5. Budget Reality
- TTT requires operational cash
- TTV requires shipping liquidity
- CIF embeds costs into price
Cheap structure often means hidden costs.
6. Why Buyers Choose the Wrong Structure
Most buyers choose based on:
- Broker promises
- Lowest headline price
- Online deal templates
Professional buyers choose based on:
- Bank acceptance
- Inspection feasibility
- Execution certainty
FAQ — Choosing the Right Structure
- Is TTT the cheapest?
No — it just hides costs. - Is CIF safer?
Yes — but more expensive. - Which do banks prefer?
CIF or TTV. - Can beginners do TTT?
Almost never successfully. - What do sellers prefer?
Structures that close.
Conclusion — Be Honest About Your Position
The best structure is not the cheapest.
It is the one that:
- Your bank supports
- Your team can execute
- Your timeline allows
Choose structure first.
Price comes later.
In commodities, realism beats ambition every time.
