What is TTV (Tank to Vessel)?
Tank to Vessel (TTV) describes how a parcel is delivered: the seller's product is already in storage at a terminal, and delivery happens by pumping it out of that shore tank into a vessel the buyer has nominated. It is quoted most often on refined products — gasoil and diesel, jet fuel, fuel oil, naphtha — and occasionally on bitumen and vegetable oils. Terminals do this every day; there is nothing exotic about the operation itself.
At a glance
What it is used for
TTV appeals because the cargo supposedly exists already, in a named tank, at a named terminal — so a buyer can in principle inspect it before committing. It is also the vocabulary most unsolicited refined-product offers are written in, which is the other reason to know exactly what it does and does not mean.
How it works, step by step
- 1Agree the contract first. It must name the terminal and the tank, the product specification, the quantity and its tolerance, the laycan, the Incoterm (normally FOB at the loading terminal), whether shore tank figures or terminal meters govern, who appoints and pays the inspector, and what payment is made against.
- 2Both sides show they are real. The buyer puts up the agreed instrument — a letter of credit, or proof of funds in the form the contract specifies — and the seller evidences the product: a tank storage receipt or terminal holding certificate in the seller's name, and confirmation from the terminal that it is unencumbered and available for the laycan.
- 3The seller obtains the terminal's authorisation. An Authority to Board or equivalent instruction lets the buyer's inspector onto the terminal and permits the tank to be gauged and sampled. Without it, every promise of inspection is theoretical.
- 4The buyer nominates a vessel and the seller accepts it. The terminal then vets the ship, which takes days and can end in rejection. Nomination is where the buyer's money starts moving, so nothing should be nominated before step three has actually produced an inspection.
- 5An independent inspector gauges the shore tank before loading and draws sealed samples, which are tested against the contract specification. This is the moment quantity and quality become facts rather than claims.
- 6The vessel berths and tenders Notice of Readiness; laytime starts as the contract says it does. Product is pumped from the shore tank into the vessel, and the inspector gauges the tank again after loading and takes the ship's figures.
- 7Documents are issued: bill of lading, certificates of quantity, quality and origin, the ullage report and the time sheet. Payment follows against those documents in the form the contract set — the letter of credit is negotiated, or the transfer is made. Any demurrage is settled afterwards from the time sheet.
Key points
- It is an operation, not an Incoterm. TTV says how the oil moves and allocates no cost, risk or delivery point; a TTV sale is normally written as FOB at the loading terminal.
- Quantity is established by shore tank gauging or by calibrated terminal meters. Which one governs must be agreed before loading, because they will not agree exactly.
- The title document is the bill of lading, issued once the product is on the ship. Tank receipts and dip reports are evidence about a tank, not ownership of what is in it.
- Related terms: TTT is tank to tank, moving product into the buyer's own tank at the same terminal; TTO is tank takeover, where the buyer takes over the tank itself.
What to watch for
- "Dip and pay" proves less than it sounds. A dip shows a volume of product of a given specification was in a tank at that moment — not that the seller owns it, that it is unsold, that it is not pledged to a bank, or that it will still be there on loading day.
- Nominating a vessel is the first substantial cost in the deal, and once it tenders Notice of Readiness the demurrage clock runs. Any procedure that puts nomination before verified proof of product has moved the first real cost onto the buyer.
- Confirm the tank with the terminal using contact details you found independently. A phone number or email supplied inside the offer confirms nothing.
Frequently asked questions
Is TTV an Incoterm?
No. The Incoterms rules are eleven terms published by the ICC and TTV is not among them. It describes a physical operation and allocates no cost or risk, so the contract still needs an Incoterm — usually FOB at the loading terminal.
What is the difference between TTV and TTT?
TTV moves product from a shore tank onto a ship. TTT moves it into the buyer's tank, usually at the same terminal, so the buyer needs their own storage agreement rather than a vessel.
Is dip and pay safe?
Less than it sounds. A dip establishes what was in a tank at one moment. It says nothing about who owns it, whether it is already sold, whether it is pledged, or whether it will still be there when your vessel arrives.
Related terms
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