EXAMPLE PAGE: FYBR V MASTER WORKS

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In essence the intermediary needs to study the premise, the very same applications in trading, as used by those in the corporate world. The only difference in applying such a premise is that procedural matters of protocol and rules are and adapted, so that the trade intermediary can become involved in the deal as a third independent party, in a two party deal. Note the term “adapted”.
                                                                                                                                                                  

A legal battle in arbitration courts, as they pertain to matters where one party is in breach of an internationally applied trade contract with another, eventuates often globally. Two parties bought before a court, litigate upon the merits of a sales contract often drawn up by their very own lawyers define to imply that even such lawyers are not always right, in applying legal edicts of trade which are much publicised. If this is the case as it applies to End Buyers and Suppliers doing business in the International arena, using highly paid and highly skilled lawyers, then really what chance has an intermediary in conducting such business safely where genuine straightforward trading information as applicable to such intermediaries, is simply hard to come by at the best of times.

The “Doctrine of Strict Compliance” is where the independent trade intermediary can seek relief in knowing that, at the very least, if a strict set of acceptable globally applied guidelines are also associated to the nature of business in hand, then the chances of such litigation could define a remote threat to the well informed intermediary. “The World is Yours ll”, is applying the said edict as applicable to mean that the intermediary is only trading with the safe principles of trade as it applies to the said "Doctrine of Strict Compliance”. The very same doctrine applied by good exporters, importers and especially International banks.

The International trade intermediary is actually trading on the same base platform as corporate traders and banks is not an apparent edict at first, because many International trade advice and publications are geared for “Principal” use only to which most intermediaries simply give up attempting to apply such said trading procedures for lack of specific information being readily available. Even many of our own trained intermediaries, who have paid for tuition over the past few years, have given up trading altogether, after learning the true nature of what is expected to apply to such an intermediary contemplating to enter into such trading activities. The message here is clear, if you are not in it for the long haul, then learning to grasp the base edicts offered in this publication is a futile exercise.

 

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“Throwing a small wrench into the drive of a very large machine can make it stop or even destroy it outright”.

A frenzy of Intermediaries all claiming allegiance to the misconceived Seller’s or Buyer’s side usually apply to add their "own" commission rate on a deal, then simply forward the offer to the next intermediary who changes the prices again to accommodate their own misguided concept of what such a commission rate should be. Nondisclosure, Non Circumvention documents circulate all over the place as well - as if such “NCND” documents mean anything, when in fact they are nothing more than RF.

Everyone then begins the customary second stage of the said feeding frenzy in where commission pay orders are sought. At the end of days or weeks of finally getting one principal to face off with another principal, more often than not, no deal is made, and everyone is left in the dark after "stepping back", to which someone begins to make a claim that they have been circumvented. Before long everyone in that particular trading group begins to sing the same "circumvention” tune. Nevertheless, no lessons are learnt, and the whole process starts once more when another "offer" becomes apparent from some other dark corner of the planet.

For the moment let’s forget all of the above and let’s assume that such deal is strong up to a point, and that the End Buyer has issued to the intermediate Buyer/Seller a transferable DLC and that it was successfully transferred to the so called “Seller” and not a Supplier. How is such a Seller going to transfer the DLC to his Supplier? The DLC can only be transferred once is a critical understanding. It's already been transferred once and cannot be transferred again. It’s obvious the deal is going to fall in a massive heap. Allowing this scenario to happen once, means it’s going to take a long time before such an opportunity to close a deal will eventuate again.

But that’s not even the issue here. Forget all the critically flawed application and let’s assume the Seller got the DLC that is accepted. The Seller now needs to issue a "Performance Guarantee", because that's what been placed as a condition the credit. Let’s now play with this type of doomed transaction accordingly as plied by many misguided intermediaries daily.

 

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The ship may load it’s goods in 3 or 4 days, but on board inspection could take up to Ten days to complete or even longer, after such is completed the ship must apply to slip it’s moorings within 24 hours of such on board inspection is completed-
Study Atlas Marine PDF. Look at the last summary page. Tell me ? How long did the ship take to load and leave loading port?


SHIPPING AND INTERMEDIARIES-
Now please read the following advice intently- FTN exporting have seen so many stupid intermediary contracts, that the following advice will clear up the matter regarding “Shipping and Ships” once an for all-

first of all - incoterms FOB “ Named port of shipment’  defines that the terms delivery means document delivery and not physical delivery-

This mean intermediaries deal in documentary title of the good they are buying then selling-

If a end Buyer was dealing directly with the supplier the same premise applies- it’s no different with intermediaries-
 

 

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applied so that the end buyers side is completed first by a few days in compared to the supplies side.
Formulation
(1) FTN goes( to Nymex or)  Dubia platts obtains today's price.
(2) You have been offered 31 API Kuwait Light  crude.
(3) Assume today Per BBl price at 12.01  PM GMT is USD$70 per BBL  FOB
(4) You apply a Premium to favour the end buyer.

What is a premium: You need a mechanism to ensure that when price rises , so that the suppliers obligation to give you a discount will prevail as a constant. You see the supplier also understands that in 90 days, price could dramatically rise- Hence you are offering a higher price for Crude today, to ensure  first delivery in 90 days or more. Most suppliers expect such a premium or no offer with be advised if such is forthcoming. Supplier  will expect YOU to offer the premium. The starting premium is half the per barrel discount  rate offered or sought more or less-

Apply dollars and cents to 3 decimal points if need be. I.E: USD$56.998 per Bbl. Learn the basic application of setting up a spread sheet once only, in where once you change the per day Bbl price all or other values change automatically is the very best application.

(5) Lets assume FTN Buy  Premium: USD$4.50 dollars per 

 

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