Activities

Fuel Transportaion


Instead of navigating the sometimes challenging process of obtaining a valid TSA, buyers must instead secure Charter Party Agreements (CPA) from reputable shipping or chartering companies.

The global crude oil and refined product tanker fleet relies on a standardized classification system to streamline contract terms, ascertain shipping costs, and assess ships' capabilities for navigating ports, straits, and channels. This system, called the Average Freight Rate Assessment (AFRA) system, was established by Royal Dutch Shell over six decades ago and is administered by the London Tanker Brokers Panel (LTBP), an independent consortium of shipping brokers.

AFRA employs a scale that categorizes tanker vessels based on their Deadweight Tonnage (DWT), a metric measuring a ship's cargo-carrying capacity. The approximate cargo capacity of a vessel in barrels is calculated by taking an estimated 90% of its DWT and then multiplying that figure by a barrel per metric ton conversion factor specific to each type and grade of petroleum product or crude oil. This methodology accounts for the varying liquid fuel densities across different products and grades.

Check out these Shipping Terminologies. It is mandatory that buyers get familiar with these keywords, because they will be present in every single document (e.g. Sales Purchase Agreement, Commercial Invoice, Bill of Lading, etc.).

For more information, please contact : logistics@bggi.de.

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