A vessel-to-tank (VTT) fuel transaction is a petroleum trading structure in which fuel is delivered from a cargo vessel directly into a designated storage tank at the receiving port or terminal. This method is commonly used for EN590 10PPM Diesel, Jet A-1, gasoline, D6, LNG, and other petroleum products.

How Vessel-to-Tank Works

1. Buyer submits ICPO

The buyer provides an Irrevocable Corporate Purchase Order (ICPO) identifying the product, quantity, delivery location, and transaction requirements.

2. Seller verifies the buyer

The seller reviews the buyer's corporate information and confirms that the buyer can meet the transaction requirements.

3. Tank storage is confirmed

The buyer provides or secures suitable storage at the receiving terminal. The storage arrangement may involve a TSA (Tank Storage Agreement) or other approved terminal documentation.

4. Vessel and cargo are verified

The vessel, cargo information, loading location, and shipping documentation are reviewed by the appropriate parties before discharge.

5. Vessel arrives at the receiving port

The cargo vessel proceeds to the designated terminal and completes the required port and terminal formalities.

6. SGS inspection and quantity verification

An independent inspection company may verify the product's quantity and quality through applicable inspection procedures before or during discharge.

7. Product is discharged into the buyer's tank

Once the terminal and inspection requirements are satisfied, the petroleum product is transferred from the vessel into the nominated storage tank.

8. Payment is completed according to contract

Payment is made according to the mutually agreed commercial terms and contractual procedure.

9. Title transfer

Upon satisfaction of the agreed payment and contractual conditions, ownership/title of the product is transferred according to the transaction documents.

Vessel-to-Tank vs. Tank-to-Tank

The primary difference is the source of the product. In a tank-to-tank transaction, the product is already stored in a tank and is transferred to another storage tank. In a vessel-to-tank transaction, the product arrives by vessel and is discharged directly into the receiving tank.

Vessel-to-Tank Petroleum Trading

Vessel-to-tank transactions require coordination between the buyer, seller, vessel operator, terminal, storage provider, inspection company, and financial institutions. Proper verification of the vessel, cargo, storage, inspection, and contractual documentation is essential before funds or product are transferred.

Nationwide Brokerage Group Inc. works with qualified buyers and sellers in international petroleum trading and facilitates opportunities involving established ports, storage terminals, and petroleum supply channels.