How we price / From market to cargo
Your requirements
determine the price.
We price each enquiry individually. Your product grade, delivery route and commercial terms all affect the price. Here is how it works.
Same product. Different requirements.
One product name.
Two different prices.
Two cargoes of the same product can have different prices because their specifications, delivery locations or dates differ.
| What changes | Cargo A | Cargo B |
|---|---|---|
| Specification | One sulphur limit | Another limit |
| Location | Delivered to one port | Loaded elsewhere |
| Timing | This month | Next quarter |
How a price is built
How we arrive at
a price indication.
These three parts explain how physical commodities are generally priced. This is an overview, not a formula for calculating a quotation.
Reference
Start with the market.
A published market price is the starting point.
Physical fuels and many industrial commodities are priced using a published reference for a specific grade, location and period. It describes the market price, not the price of your cargo.
Differential
Adjust for your cargo.
An adjustment, called a differential, accounts for your cargo.
Differences in quality, loading or delivery location, loading dates and cargo size can raise or lower the price compared with the reference.
Terms
Define what is included.
The terms define what the price includes.
A price at the loading port differs from a price that includes delivery and insurance to your destination. Payment arrangements and the type of contract also affect the price.
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The result
A price indication for your cargo.
Based on your grade, location, dates and terms, and addressed to your company.
What affects the price
Five factors
that affect your price.
We use these details to understand your requirements and discuss the price.
Availability and suitability are assessed for each enquiry. Nothing on this site is an offer.
- Product & specification
- Grade, quality parameters and intended use
- Volume & frequency
- Single cargo or recurring supply
- Origin & destination
- Sourcing preferences and delivery location
- Timing & logistics
- Delivery window and freight requirements
- Commercial terms
- Delivery basis, payment and contractual terms
Before we talk
Questions
about price.
Do you publish prices?
No. We price each enquiry based on the specification, quantity, delivery terms, destination, dates and commercial terms. A public benchmark helps explain the market but is not an offer. Send your requirements so our trading team can prepare a price indication.
Why is there no single global price for every product?
Prices differ by grade, location and delivery terms. Base oils, bitumen, marine fuels and petrochemicals need a product-specific assessment. We need the exact grade, location and terms to prepare a relevant price indication.
What is a price indication?
A price indication is our response to a specific enquiry. It is prepared from your grade, quantity, delivery location, dates and commercial terms, and addressed to your company. It is not a published price, and the more precise your specification, the more relevant the indication.
How is the price of a physical cargo built?
In general practice there are three parts. A published reference for a specific grade, location and period is the starting point. A differential then adjusts it for the quality, loading or delivery location, dates and size of your cargo. Finally, the terms define what the price includes. This is an overview, not a formula for calculating a quotation.
Why does the delivery basis change the price?
The delivery basis sets what the price covers. A price at the loading port differs from a price that includes freight and insurance to your destination. Tell us the basis you want, such as FOB, CFR or CIF, and the destination port or country, so the indication covers the right scope.
Do the delivery dates affect the price?
Yes. Loading or arrival dates are part of the differential, so fixed and flexible windows can lead to different prices. Give us the date range you need and tell us whether it can move.
Does the quantity affect the price?
Yes. Cargo size is one of the adjustments made against the reference, and volume and frequency are among the factors that shape the price. State the quantity, the unit and whether you need a single cargo or recurring supply.