Price bubble, page-36

js2010copper

VMS have chartered the ship (read it in today's announcement at the top of page 1), and as charterer will be paying for the freight service to the nominated port of discharge (not disclosed most likely confidential within the sales contract).

Most likely 95% ~USD2.1M of total cost ~USD2.2M, balance to be paid after the cargo is loaded and the BOL (Bill of Lading is provided by the Master of the vessel).

During the loading program, VMS will then have to have the IO sampled by an independent third party like SGS Global, and the results of the sampling are to provided along with the BOL and other commercial documents to the bank/financial institution that has provided the LC (Letter of Credit) for the sale in the event it isn't COD.

There are many different commercial arrangements going around, i have just tried to provide a simple version that I have been exposed to for you.
If all checks out with grade specification etc, the bank will put the money into the VMS account.

Payment on board when BOL and specification are in accordance with the LC, usually within a calendar week once documents are presented. I am sure other posters here with finance backgrounds can articulate it much better than I can.

Use the 58% FE Fines CFR Qingdao price USD128 p/t (AUD175 p/t) as a guide only.

Hope this helps.

IMO

DYOR