Physical route and sequence
Define load point, trans-shipment, intermediate storage, discharge and destination. Each leg should have an accountable party and credible time window.
Commodity Knowledge Centre
Shipping & Logistics
Test whether the proposed physical movement can actually be executed with the right vessel or barge, terminal, route, timing and logistics documentation.
Core verification controls
Treat each control as a separate evidential question. A credible transaction should remain coherent when the documents, parties and physical sequence are tested together.
Vessel, barge or transport asset
Verify identity, IMO where applicable, type, capacity, flag, class, status and availability. A vessel name on a document is not evidence of a confirmed nomination.
Terminal, draft and product compatibility
Check draft, LOA, manifold, segregation, pumping, safety and product restrictions. The asset must be able to berth, load/discharge and depart.
Nomination and chartering status
Distinguish an indication from a fixture, charter party, nomination and terminal acceptance. Each stage carries a different evidential weight.
Logistics documentation
Test bills of lading, cargo manifests, NOR, ullage, certificates, port records and tracking against issuer, dates and the actual voyage. Chronological consistency matters.
Costs, demurrage and contingencies
Include freight, barging, handling, storage, demurrage, insurance and delay. Poor logistics economics can erase an apparently attractive trading margin.
Evidence that should exist
- A complete route and plausible operational timeline.
- Identified transport asset compatible with product and terminal.
- Verifiable nomination, fixture or logistics records appropriate to the stage.
- Clear linkage among cargo, storage, inspection and delivery.
- Costs and contingencies incorporated into the commercial decision.
Red flags requiring escalation
- Untraceable vessels, incorrect IMO numbers or details copied from historic voyages.
- Dates requiring physically impossible movements.
- Terminal restrictions incompatible with vessel or commodity.
- BL, NOR or manifests with unverifiable issuers or inconsistent metadata.
- Delivery promises unsupported by chartering, nomination or demonstrated logistics capacity.
Verification sequence
- Map the physical chain and accountable parties.
- Verify transport asset and terminal compatibility.
- Corroborate nominations, documents and chronology.
- Model cost, timing and contingencies.
- Issue a logistics-viability conclusion and conditions precedent.
Decision output
Record what is confirmed, what remains unverified, the residual risk, the conditions precedent and one explicit decision state.
GO
Evidence supports proceeding.
CONDITIONAL GO
Proceed only after stated conditions are satisfied.
HOLD
Pause until material evidence is obtained.
NO-GO / STOP
Risk or missing evidence makes continuation indefensible.
Frequently asked questions
Does AIS prove a vessel is carrying our commodity?
No. AIS can help verify identity and movement, but the connection to a cargo and transaction requires additional documentation and corroboration.
Does a scanned bill of lading prove future delivery?
No. It may evidence a specific shipment at a specific time; it still needs authentication and linkage to the transaction under review.
Why consider demurrage early?
Because delays, terminal windows and capacity constraints can destroy margin or create disputes even where the commodity and counterparties are legitimate.
Continue the verification
Use this module together with the other Commodity Knowledge Centre controls and the MGS DD1/DD2/DD3 methodology. If a real transaction requires review, start with a preliminary assessment before committing to a full mandate.