Course 06 of 20 · LNG Desk Academy

FOB, DES & Delivery Responsibilities

Stage B, Contract and operational execution. Level 3 of 10.

The allocation of title, delivery risk, cost and performance obligation between seller and buyer under FOB and DES terms.

115 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 04, Course 05

Enrol or enquire See the 115 chapters
How a chapter is sized

One chapter is one idea taken to the point of use

Each chapter is a single self-contained explainer of 8 to 10 narrated minutes, covering one idea to the point where you can use it.

Chapters run in order. Each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 115 chapters

Open any module for its full chapter list, in teaching order.

M0 The Delivery Term as an Allocation Device Ch 1-10
  1. What a Delivery Term Actually Decides
  2. Free on Board in an LNG Trade
  3. Delivered Ex Ship in an LNG Trade
  4. The Five Things Every Term Allocates
  5. Why LNG Terms Do Not Behave Like Oil Terms
  6. The Specialised Vessel Changes the Question
  7. When the Buyer Owns the Receiving Terminal
  8. Cost, Risk and Obligation Pull Apart
  9. Reading the Term Off a Confirmation
  10. Four Ways an Allocation Surprises a Desk
M1 Title, Risk and Insurance Ch 11-20
  1. Title Passing at the Loading Flange
  2. Risk Need Not Travel With Title
  3. The Flange as a Commercial Boundary
  4. Title Under a Delivered Cargo
  5. Insurable Interest Along the Voyage
  6. Who Insures the Cargo, and for What Value
  7. Cover the Ship Carries, Not the Cargo
  8. A Cargo Lost at Sea
  9. Off-Specification Cargo Found at Discharge
  10. Title as Security While the Cargo Floats
M2 Who Provides the Vessel, and What That Control Is Worth Ch 21-31
  1. The Party Holding the Ship Holds the Decisions
  2. Bringing Your Own Ship to a Liquefaction Jetty
  3. Carrying the Cargo Yourself as Seller
  4. Owned, Chartered or Taken for One Voyage
  5. What Shipping Control Entitles You To Do
  6. What Shipping Control Obliges You To Carry
  7. Having No Ship When the Window Opens
  8. The Charter Commitment Behind a Term Purchase
  9. Freight as a Pass-Through or a Margin
  10. Reletting a Ship You Cannot Use
  11. Choosing a Term Around the Ships You Have
M3 Vessel Approval, Compatibility and the Right to Reject Ch 32-42
  1. Why a Terminal Approves Ships at All
  2. The Ship-Shore Compatibility Study
  3. Size, Containment and Manifold Fit
  4. Vapour Return and the Shore Connection
  5. Who Runs the Approval, and Who Waits
  6. Pre-Approved Lists and What They Are Worth
  7. Nominating a Vessel for Acceptance
  8. Grounds for Rejecting a Nominated Carrier
  9. Rejecting a Ship You Should Have Taken
  10. Substituting After a Rejection
  11. Approval Risk Under Each Term
M4 Port, Berth and Terminal Obligations on Each Side Ch 43-52
  1. What the Seller Owes at the Loading Jetty
  2. What the Buyer Owes at the Loading Jetty
  3. Obligations at the Discharge Terminal
  4. Who Promises the Berth Is Safe
  5. Port Charges, Tugs and Pilotage
  6. Cooldown and Who Provides the Gas
  7. Nitrogen, Inerting and Arrival Condition
  8. The Right to Unload and Where It Comes From
  9. No Berth Available on the Day
  10. When the Counterparty Owns the Terminal
M5 The Delivery Window and Who Bears a Delay Ch 53-63
  1. The Arrival Window Under Each Term
  2. Who Names the Window and Who Accepts It
  3. Narrowing a Window Down to a Date
  4. Arriving Early and Waiting Offshore
  5. A Buyer's Ship That Turns Up Late
  6. A Seller's Cargo That Is Not Ready
  7. Missing the Window Altogether
  8. Ship Delay Against Shore Delay
  9. Delay Neither Party Caused
  10. A Slipped Window and the Pricing Dates
  11. One Delayed Cargo, Allocated Both Ways
M6 Demurrage and the Allocation of Waiting Time Ch 64-73
  1. Demurrage When You May Own Both Ends
  2. Allowed Time at a Liquefaction Berth
  3. Allowed Time at a Receiving Terminal
  4. Who Pays for Waiting Under FOB
  5. Who Pays for Waiting Under DES
  6. Congestion as an Allocated Risk
  7. When the Buyer's Own Terminal Causes the Delay
  8. Passing Waiting Costs Along a Chain
  9. The Rate, the Cap and the Allocation Behind Them
  10. Waiting That Is Nobody's Demurrage
M7 Boil-Off and the Heel Ch 74-84
  1. Evaporation as a Commercial Loss
  2. Who Loses the Gas That Boils Off Under FOB
  3. Who Loses the Gas That Boils Off Under DES
  4. Boil-Off Burned as Fuel
  5. A Long Voyage Against a Short One
  6. A Guaranteed Boil-Off Rate as an Allocation
  7. Why a Ship Never Empties Completely
  8. The Heel on an FOB Lifting
  9. The Heel on a Delivered Cargo
  10. Buying and Selling the Heel
  11. Evaporation and the Heel in What You Actually Deliver
M8 What Each Term Does to Your Optionality Ch 85-94
  1. Optionality as a By-Product of the Term
  2. The Free Destination of an FOB Cargo
  3. The Fixed Destination of a Delivered Cargo
  4. Destination Restrictions on a Lifted Cargo
  5. What the Seller Gains by Delivering
  6. Reselling a Cargo That Is Already Afloat
  7. Swapping Cargoes and the Term That Allows It
  8. Deferring or Cancelling a Lifting
  9. The Flexibility Nobody Charged For
  10. The Freedom a Term Cannot Give You
M9 Converting a Cargo Between Terms Ch 95-104
  1. Why a Cargo Gets Converted Mid-Deal
  2. The Conversion Question in Four Parts
  3. Turning a Lifting Into a Delivered Sale
  4. Turning a Delivered Purchase Into a Resale Afloat
  5. Building the Conversion Adjustment
  6. Evaporation and Heel Across a Conversion
  7. Waiting and Window Risk Across a Conversion
  8. Title and Cover After the Basis Moves
  9. Agreeing a Conversion With the Other Side
  10. A Conversion That Should Have Been Refused
M10 The Same Cargo Both Ways, and the Limits Ch 105-115
  1. Setting Up the Comparison
  2. Sold Free on Board, Part One: What Each Side Owes
  3. Sold Free on Board, Part Two: Where It Breaks
  4. Sold Delivered, Part One: What Each Side Owes
  5. Sold Delivered, Part Two: Where It Breaks
  6. The Two Allocations Side by Side
  7. Choosing a Basis for the Position You Hold
  8. The Same Cargo With the Berth Blocked
  9. Bases That Are Neither One Nor the Other
  10. What a Delivery Term Cannot Allocate
  11. What This Capability Feeds Next

The brochure gives each of these 115 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 6 of twenty

It stands alone, and it is also the entry point to the LNG Desk Academy pathway.

Enrol or enquire See the whole pathway