The role of independent inspectors
An independent inspector is a neutral third party engaged to verify what was actually loaded and discharged, so that neither buyer nor seller relies solely on the other’s figures. The inspector attends the vessel and terminal, measures the cargo, draws samples and issues certificates that are relied on under the sale contract and the documentary payment.
Independent inspection companies such as SGS and Intertek are widely used across commodity trading; they are named here only as well-known examples of the type of company engaged and are not stated partners of 3FB. The inspector for a given cargo is appointed for that transaction, commonly agreed between the parties, and 3FB facilitates that appointment and scope.
Quantity determination
Quantity is determined by measurement at the point of custody transfer. For a vessel this is typically done by ullage of the ship’s tanks and by draft survey, and is cross-checked against shore tank gauges or metered figures at the terminal. Measured volumes are corrected to a standard temperature so that load and discharge figures can be compared on a like-for-like basis.
- Vessel ullage — measurement of the empty space in the ship’s cargo tanks to derive loaded volume.
- Shore tank gauging or metering — the terminal’s independent measure of the volume transferred.
- Temperature and density corrections — adjusting observed volumes to standard conditions.
Quality determination and sampling
Quality is established by drawing representative samples during loading and analysing them against the contractual specification. Samples are taken at defined points, sealed, and retained so that results can be verified or disputes resolved later. Laboratory analysis reports the parameters that matter for the grade — for example density, sulphur content, flash point or distillation characteristics — and confirms whether the cargo conforms to the agreed specification.
Certificates issued
The inspection produces the certificates that support the document set and the release of payment. These commonly include a certificate of quantity, a certificate of quality or analysis, and a time or sampling record. Where required, a certificate of origin and other attestations are prepared alongside them.
- Certificate of quantity — the independently measured volume loaded or discharged.
- Certificate of quality / analysis — laboratory results against the contractual specification.
- Sampling and seal records — evidence of how and where samples were drawn and retained.
How these certificates fit the wider document set is covered in the documents in a crude oil transaction and in how independent inspection works.
Appointment and coordination
The inspector is usually agreed between buyer and seller, and the cost is commonly shared or allocated as the contract provides. 3FB coordinates the appointment, the scope of work and the timing so that inspection is in place when the vessel loads, and so that the certificates are consistent with the quality clauses of the sale contract and the terms of the payment instrument. 3FB does not perform inspection or issue certificates itself.