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ENGLISH LANGUAGE
23 Feb 2025
English language is the universal lanugage used by Pilots, Ships Captians, Customs, Air Traffic Controllers, Diplomates when deliving in International Trade matters . If a PCT speaks let us say Italian, and he/she has found a new international export ready supplier who does not speak english, but only Italian then the PCT has to apply the trade in italian between him and the supplier. The PCT then converts the deal from his postion into English. But it's a risky proposition because of matters to do with translation.English words and visa verse do not often translate to convey an effective legal aspect. The PCT could find a breach of contract eventuating quickly. As such , English is the universal business language. If you are buying or selling commodities, it must be conducted in the English language so that English law, and delivery /banking rules can be effectively and safely applied.
TRANSFER FEE
26 FEB 2026
A DLC is advised as transferable to a PCT. The PCT advises the end buyer as per the offer made prior, the price of goods offered assumes the end buyer pays for the Transfer fee on the DLC being advised to the PCT. This is the expectation especially when a good price is apparent. The PCT must never pay for such a transfer fee as no refund policy is served should the deal collapse after the DLC transfer fee is paid. The current aspect requires that that the DLC cannot be transferred unless the fee is paid firs, and the TDLC can only be transferred once. This is important because it formally serves evidence that the fee came from the same account which identifies the buyer. The current transfer fee starting at 0.125% upwards can be expected on complex trade deal where the security aspect of a UCP endorsed DLC is in play. Different banks allow different transactions to attract lower fees; but first time transaction - expect the full amount payable on such fees. If at times a PCT is going to collect the TF from the supplier, as a security matter to ensure the DLC go directly to only the supplier, the price of goods can incorporate this fee as indicated on the contract. A bank overseas the financial side of the transaction and; as such plays an important role as an intermediary in overseeing this aspect as a matter of security. If goods cost the PCT let us say $1000.00 per MT FOB to buy from a supplier then the PCT must add 3.0% as an automatically applied minimum aspect to the FOB price to take care of ‘unexpected’ bank availing charges and expenses to do with late delivery. If the same goods being offered to a PCT costs let us say on average $1100.00 Per MT FOB, as per international prices and the PCT buy the goods he has secured for $1000.00 per MT FOB, it must add $30.00 to the sell price and perhaps another 3.0% for cascading commission /gross profit earnings.This means the goods are offered to the end buyer for @1060.00 Per MT FOB NBC. If the deal goes well the PCT should be able to collect around 5.0% average gross profit. If it goes awry; the 3.0% minimum aspect added after unexpected expenses were incurred , could still allow the PCT to earn ’something’ ones such expenses are paid. The PCT has to give a good deal (price) when selling secured products . A good deal is where the price offered to the end buyer still falls below the international price of goods being sold. To buy 100 MT of aluminium ingots will attract one price compared to buying 1000 MT of the sam product. This is the expectation of any large purchase deal. Even with international markets being dragged into TRUMP imbroglio, the UCP endorsed DLC and the many complying banks world wide offer the best and safest trade deal possible as it applies to the financial side.
RARE MINERALS
25 Feb 2025
A PCT cannot buy and sell minerals as per a greenfield deal.Such involves the implementation of a greenfield investment project which are expensive projects to initate. The mine needs to be operational and the minerals needs to be ascertained and graded before a PCT is able to consider buying and selling such goods which rarely come our way.
PRE PAID FREIGHT
25 Feb 2025
Again let me provide another simple persepective on this one o complex issue that is still confusng many sellers /buyers: So the DLC on a CFR deal arrives in a bank located In Melbourne Australia, for the benefit of the seller FTNX. One of the documents that the bank will expect to sight is a BOL with the world ‘Pre Paid’ stamped on its form.This means the supplier has booked the ship and has provided RWA when doing so. It tells the carrier that his money for carriage of goods that has yet to been earned; is collectible and secured once the goods have been ‘physically’ delivered to POD. So delivery under incoterms is different in meaning to delivery of goods physically. In an advanced trading aspect ( highly skilled USCT members) if FTNX purchased goods at FOB to Melbourne first . The goods arrive and are warehoused. Then in Melbourne, FTNX books a ship at CIF with the demand being sought for a Shipowners BOL endorsement marked as Pre Paid, when selling such goods to an end buyer in smaller lots . The goods are loaded in Melbourne via the booked carrier after FTNX has first provided an RWA to the carrier . With the end buyer DLC already secured, FTNX simply advises BCL or other advice, locally to the local shipping company (agent) to verify with the our bank. This allows the pre paid stamp to be applied to the BOL as produced by FTNX to meet with the requirements of UCP banking rules. The goods are delivered to POD. Before the first line is secured at POD, a demand for the payment of freight will be advised to the end buyer. If the goods cost let us say $1000.00 at FOB, to be sent to Melbourne for storage, and the freight charge component is let us say $40.00 dollar per MT, after adding 7.0% for profits and expenses, the DLC from the end buyer would bear a value of US$1110.00 . FTNX would only collect as per the invoice and documents being presented to its bank the sum of $1070.00 per MT. This means the $40.00 quoted by FTNX per MT for carriage, remains in the account of the end buyer . The end buyer pays for the freight from this fund, because this is the rate quoted by FTNX.This is what the bank of FTNX will do; as per URC collection rules which require the BOL to be endorsed by a shipowner and not charter party and be clearly marked as ‘pre-paid’ as “ pre-paid’ by the end buyer to FTNX is the presumption.if the end buyer does not pay for freight, he will not be able to obtain title to the goods once they have been unloaded POD. If FTNX gave a CIF price to the end buyer where upon arriving the carrier demands; let us say $60.00 per MT for delivering the goods to the end buyer; FTNX upon receiving the invoice from the carrier ( via the end buyer) will immediately transfer the differential from its gross profit, to the account of the end buyer. Pre-paid simply means the carrier is assured payment for carriage if goods once it arrived a POD, it does not means the carrier has been paid for carriage by the seller/supplier before loading commenced as the carrier ‘has to earn freight’ by completing the delivery to POD. Whatever nonsense you have seen online; the above scenario provides a clearly defined example of a confusing aspect of trade to do with carriage. This is why a UCP endorsed DLC is used. It protects everyone involved in the deal. FTNX can only buy secured goods from the supplier and sell to the end buyer.This is assured because the BOL is marked on the margin to the end buyer; meanin– the title to the goods can not be sold in a never ending ( risk laden) string dea.The goods have to go directly to the end buyer .If the end buyer wants to on sell such goods then the end buyer has to initiate a fresh new set of proceedings.
CRUDE OIL HYPOCRISY
27 Feb 2025
The Oil tanker chartered by Chevron being loaded at the Bajo Grande Oil terminal at Maracaibo Lake, Venezuela, went straight to the USA under Biden. Under Trump the ‘deal-maker’ this week had announced that he will be reversing the oil concession to Chevron, while a PCT obeying westerns sanction attempting to trade on such oil would be charged with a crime. This is the current state of affairs the USA Government under MUSK and there ‘deal maker ‘ Trump who can close only any deal so long as it closed his way regardless of legality, rules and laws - because Trump is a rwlayly big ‘deal maker.’ Yeah! Look what he has done in Ukraine. He accepted a mineral deal in an effort to recoup the cost of supporting Ukraine battling with Russia. Under this aspect USA must owe Trillions to a lot of countries that came to its support during troubling times, in the last 70 years. A mineral deal where USA has to spend money to develop a mine located in territority currently held by Russia, that does not produce a lot of end product. Brilliant Trump. What a coupe! Wow! This is how deals are made. This is how Trumps is going to end the war in Ukraine. Americans need to be wary and the bear the idea that if Putin and China decided on a pre empted nuclear attack on the USA, right at this very moment, the USA may be unable to respond because nuclear technicians were sacked last week. Trump and Musk has placed the world in a very precarious situation; and it is the PCT who needs to be careful in ensuring we obey the law.It seems 'no level playing feild' is apparent anymore.Luckily the FTNX doctrine protects the PCT from being scammed or intimidated.
