Spotting Fraudulent Diesel Sellers in Vessel Trading:
From our company archive. Market commentary reflects its original publication date.
Spotting Fraudulent Diesel Sellers in Vessel Trading:
Wholesale diesel trading faces circa. $5B+ in annual fraud losses. Protect your business by recognizing these red flags and implementing rigorous due diligence:
Critical Warning Signs
– “FOB Jurong” Offers: Unsolicited EN590 diesel deals “FOB Jurong” (Singapore) are high-risk—Jurong is a receiving port, not an export hub. Both Rotterdam and Houston are renowned for “Mandates” and “Brokers” to use as hubs to commit Fraud either by way of product or storage access
– Upfront Fees: Demands for deposits (e.g., “tank access” or “dip tests”) *before* product verification signal scams.
– Too-Good-To-Be-True Pricing: Market rates far below benchmarks (e.g., $350–400/MT for EN590) are bait.
– Pressure Tactics: Urgent deals or requests for secrecy (e.g., “keep confidential”) indicate manipulation.
– Documentation not normally used in Fuel Trades by Refiners: Irrevocable Purchase Orders, Letters of Intent, Soft Corporate Offer, Full Corporate Offer
Document Verification Essentials
Fraudsters often use forged paperwork. Always demand:
– Proof of Product (POP): Valid tank receipts (TSR), third-party inspection reports (e.g., SGS), and vessel documents (Q88/Q92).
– Ownership Proof: Unconditional titles like Bills of Lading.
– Vessel History: IMO numbers, port records, and Charter Party Agreements (CPA) for FOB claims. #MaritimeIndustry #FuelTrading #FraudPrevention #SupplyChainSecurity #DueDiligence #EnergySector #RiskManagement #WholesaleTrading #MaritimeSafety #drakensbergenergy #diesel #gasoil #ulsd