The Real Difference Between Tank-to-Tank & Tank-to-Vessel

  • Auteur/autrice de la publication :
  • Post category:Uncategorized
  • Commentaires de la publication :0 commentaire

The Real Difference Between Tank-to-Tank & Tank-to-Vessel

Which delivery method real sellers accept — and why most buyers fail before the first inspection.


Introduction — Two Terms, Two Worlds

In global fuel trading, few concepts are more misunderstood than Tank-to-Tank (TTT) and Tank-to-Vessel (TTV).

On paper, both look simple. In reality, they represent two completely different risk profiles, power balances, and acceptance levels by sellers, terminals, banks, and inspectors.

Most buyers fail not because they lack money — but because they choose the wrong delivery structure for their credibility level.


1. What Tank-to-Tank (TTT) Really Means

Tank-to-Tank delivery means:

  • The fuel is already stored in a recognized terminal
  • Both buyer and seller operate inside the same terminal system
  • Ownership transfers from one tank account to another

No vessel is involved. No sea risk. No voyage uncertainty.

Why Sellers Prefer TTT

  • Fuel existence is verifiable
  • Terminal controls the process
  • Inspection is straightforward
  • Risk is limited and contained

For sellers, TTT is controlled, auditable, and bankable.


2. What Tank-to-Vessel (TTV) Actually Involves

Tank-to-Vessel delivery means:

  • Fuel is loaded from terminal tanks onto a buyer-nominated vessel
  • Marine logistics are introduced
  • Risk transfers during loading or at hose connection

This is not just a physical change — it is a legal and financial escalation.

Additional Risks in TTV

  • Vessel nomination failures
  • Port congestion
  • Demurrage exposure
  • Insurance complexity
  • Weather and operational delays

TTV shifts significant responsibility from terminal to buyer.


3. Why Sellers Are Selective With TTV

Contrary to broker claims, most real sellers do not offer TTV to unknown buyers.

Sellers require:

  • Proven lifting history
  • Reliable shipping partners
  • Clean payment performance
  • Operational competence

TTV is not a beginner-friendly structure. It is reserved for buyers with a track record.


4. Inspection Differences: Where Buyers Get Confused

Inspection Under TTT

  • Sampling inside terminal tanks
  • Quantity and quality verified before transfer
  • Clear chain of custody

Inspection Under TTV

  • Pre-loading tank inspection
  • Loading supervision
  • Onboard sampling
  • More variables, more rejection points

Buyers often underestimate how much harder inspection becomes under TTV.


5. Payment Logic: Why TTV Breaks Weak Structures

TTT allows:

  • Inspection before payment
  • Terminal-controlled transfer
  • Lower seller exposure

TTV often requires:

  • Pre-loading financial commitments
  • Demurrage guarantees
  • Stronger banking instruments

Many buyers fail because their payment terms work only on paper — not in ports.


6. Why Brokers Push TTV to Inexperienced Buyers

TTV sounds attractive:

  • “Direct loading”
  • “Fresh fuel”
  • “No storage costs”

In reality, TTV is often used to:

  • Hide lack of product in tank
  • Delay proof of existence
  • Shift risk to the buyer

If fuel is real and available, TTT is always the simpler option.


7. Why Most Buyers Fail at TTV

Common failure points:

  • No approved vessel
  • Late nomination
  • Incorrect port documentation
  • Weak insurance coverage
  • Inexperienced operations team

TTV exposes every operational weakness.


8. Which Structure Banks and Inspectors Prefer

Banks, inspectors, and terminals prefer:

  • Clear custody
  • Minimal moving parts
  • Predictable risk transfer

That means:

TTT first. TTV only with proven counterparties.


FAQ — Choosing the Right Delivery Method

  1. Is TTV more profitable?
    Only for experienced buyers who can manage risk.
  2. Can new buyers request TTV?
    They can request it — but sellers rarely accept.
  3. Is TTT safer?
    Yes, for both buyer and seller.
  4. Does TTV mean fuel is fresher?
    No. Fuel quality depends on storage and handling, not delivery mode.
  5. Which is easier to finance?
    TTT, by a wide margin.

Conclusion — Choose Structure, Not Stories

Tank-to-Tank and Tank-to-Vessel are not interchangeable terms. They reflect two different levels of trust, capability, and risk tolerance.

Most buyers fail because they choose a structure that exceeds their operational reality.

In fuel trading, sellers do not reward ambition — they reward execution.

If you cannot pass TTT cleanly, TTV will expose you.

Laisser un commentaire