IndianOil will not accept Russian crude oil free of cost on board basis due to insurance risk
London:
Indian Oil Corporation (IOC) will no longer accept cargo of Russian crude oil and Kazakh CPC blend cargo on free-on-board (FOB) basis due to insurance risk, according to a tender notice and a source familiar with the matter.
The letter was sent on Monday to traders who submit cargo offers in IOC’s regular crude oil purchase tenders.
FOB is a term used in the parlance of maritime trade to indicate whether the seller or buyer is liable for goods damaged or destroyed during shipping. “FOB Original” means that the buyer assumes the risk after the seller has shipped the product. The buyer pays the shipping cost from the factory and is responsible if the goods are damaged during transportation. “FOB Destination” means that the seller retains the risk of loss until the goods reach the buyer.
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