An alternative to presenting a valid TSA (that could be challenging sometimes), buyers are required to secure Charter Party Agreements (CPA) from reputable shipping or chartering companies.
The global crude oil and refined product tanker fleet uses a classification system to standardize contract terms, establish shipping costs, and determine the ability of ships to travel into ports or through certain straits and channels. This system, known as the Average Freight Rate Assessment (AFRA) system, was established by Royal Dutch Shell six decades ago, and is overseen by the London Tanker Brokers Panel (LTBP), an independent group of shipping brokers.
AFRA uses a scale that classifies tanker vessels according to DWT, a measure of a ship's capacity to carry cargo. The approximate capacity of a ship in barrels is determined by using an estimated 90% of a ship's DWT, and multiplying that by a barrel per metric ton conversion factor specific to each type of petroleum product and crude oil, as liquid fuel densities vary by type and grade.
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@untrawire.com.