Indian Oil will not accept Russian crude oil for free on shipping basis due to insurance risk
LONDON:
The Indian Oil Corporation (IOC) will no longer accept transport of Russian crude oil and Kazakh CPC mixed cargoes free on board (FOB) due to insurance risk, according to a tender notice and an informed source said.
The letter was sent on Monday to traders submitting commodity offers to participate in the IOC’s regular crude oil tenders.
FOB is a term used in maritime commercial parlance to refer to the seller or buyer being responsible for goods damaged or destroyed during transit. “FOB Origin” means that the buyer risks when the seller delivers the goods. Buyer pays for 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.
