Logistics
Packaging, delivery terms and routes
How goods are packed, who bears which part of the route, and through which ports they are sourced from Erbil and delivered worldwide.
Interplay
Packaging and Incoterm belong together
The packaging sets the unit in which goods are moved, from the canister for workshop supply to the bulk vessel in tanker trade. The Incoterm sets who bears cost and risk on each section of the route.
Together they define the delivered condition. Base oil FOB Jebel Ali in IBCs is a different delivery from the same quantity CIF Mombasa in drums. The price differs, and so does the answer to who is liable if the goods are damaged.
Packaging forms
From 1 litre to a tanker cargo
| Packaging | Volume / weight | Typical use |
|---|---|---|
| Canister | 1 to 20 litres | Retail, small buyers, workshops |
| Drum (208 L) | 208 litres | Standard industrial packaging for oils and chemicals |
| IBC | 1,000 litres | Medium quantities, refillable or for one trip |
| Flexitank | 10,000 to 24,000 litres | Bulk liquid transport for one trip in a 20 foot container. Not suitable for dangerous goods. |
| Bag, 25 kg | 25 kg | Solids such as fertilisers, polymers, chemicals |
| Bag, 50 kg | 50 kg | Solids, classic bagged goods |
| Big bag (FIBC) | 1,000 kg | Bulk solids, granules, powders |
| ISO tank | 21,000 to 26,000 litres | Bulk liquid transport. Depending on design also suitable for dangerous goods. |
| Bulk vessel | several thousand tonnes | Transport of large volumes by tanker or bulk carrier |
Seven delivery terms
Incoterms 2020
The Incoterms govern the transfer of cost and risk between seller and buyer. They do not govern ownership of the goods. For bulk and container cargo in commodity trading, these seven are relevant.
| Incoterm | Full name | Explanation |
|---|---|---|
| EXW | Ex Works | The seller makes the goods available at its own works or warehouse. From collection onwards the buyer bears all costs and risks. |
| FOB | Free on Board | The seller delivers the goods on board the vessel named by the buyer. Risk and costs pass on loading. |
| CFR | Cost and Freight | The seller arranges and pays for transport to the port of destination. Risk passes to the buyer as early as loading. |
| CIF | Cost, Insurance and Freight | As CFR. In addition the seller must take out transport insurance up to the port of destination. |
| CIP | Carriage and Insurance Paid To | The seller pays for transport and must also take out insurance against all risks up to the named place. |
| DAP | Delivered at Place | The seller delivers ready for unloading at the named place of destination. The buyer handles import clearance and duties. |
| DDP | Delivered Duty Paid | The seller delivers to the buyer's door with import duties and taxes paid. This is the widest obligation on the seller. |
ISO tank containers on trailers
Ports and routes
Gulf region, African destination markets and reference markets
Gulf region
- Jebel Ali · UAELargest port in the region, integrated with the Jafza free zone, central for refined products, aviation fuel and chemicals.
- Hamriyah · UAEFocus on petrochemicals and base oils, re-export of fuel oil and gasoil across the Gulf region.
- Fujairah · UAEThe only multipurpose port of the UAE on the Indian Ocean outside the Strait of Hormuz, and the largest bunkering hub in the region.
- Sohar · OmanGrowing handling point for bunker product and oil outside the Strait of Hormuz.
Africa
- Mombasa · KenyaGateway to East Africa with a rail link to Uganda, Rwanda and the DR Congo, central for fertiliser imports.
- Durban · South AfricaMain point of entry for fertilisers and industrial goods into southern Africa.
- Dar es Salaam · TanzaniaSecond major East African port alongside Mombasa, connected to the Tanzanian and Central African hinterland.
- Lagos / Apapa · NigeriaWest Africa's trading hub for urea, phosphoric acid, bitumen and crude oil.
Reference markets
- Rotterdam · NetherlandsEurope's main gateway for petrochemical products, reference market of the ARA region.
- Singapore · SingaporeAsia's main trading centre and price reference, central for bunkering and base oil re-export to Southeast Asia.
We name no capacity without a terminal and no route without a port, and we draw no map with arcs.
Enquire about packaging and delivery terms
Give us the product, quantity, delivery term and destination port. We settle everything else by phone.