LONDON:
Indian Oil Corporation (IOC) will no longer accept shipments of Russian crude and Kazakh CPC Blend shipments on a free-on-board (FOB) basis due to insurance risk, according to a tender announcement and a source familiar with the matter.
The letter was sent Monday to traders submitting freight offers to the IOC’s regular tenders for buying crude oil.
FOB is a term used in maritime trade to indicate whether the seller or the buyer is liable for goods damaged or destroyed in transit. “FOB origin” means that the buyer is at risk once the seller ships the product. The buyer pays the shipping costs from the factory and is responsible if the goods are damaged in transit. “FOB Destination” means that the seller retains the risk of loss until the goods reach the buyer.