Reference · Bulk Commodity Trade

Commodity Trade Glossary

Plain-English definitions of the terms, documents, and instruments used in bulk petroleum, metals, and commodity trade.

What Is This Glossary?
Every term in this glossary comes from real deal flow on the Skyra CIP B2B platform — the documents buyers and sellers exchange, the instruments banks require, and the procedures inspectors enforce. Use it to verify counterparty knowledge, prep for negotiations, or understand a document you have just received.

Trade Documents

Trade Documents
ICPO
Irrevocable Corporate Purchase Order — a binding buyer commitment used in bulk commodity trade to initiate a deal.
Trade Documents
RWA
Ready, Willing and Able — a formal declaration from a seller (or buyer) confirming they have the capacity and intent to complete a commodity transaction.
Trade Documents
LOI
Letter of Intent — a non-binding expression of a buyer's preliminary interest in a commodity transaction, issued before a formal ICPO.

Finance & Banking

Finance & Banking
SBLC
Standby Letter of Credit — a bank-issued payment guarantee used as security in commodity trade deals.
Finance & Banking
DLC
Documentary Letter of Credit — the primary payment instrument in international commodity trade, guaranteeing payment upon presentation of shipping documents.
Finance & Banking
MT103
SWIFT MT103 is the standard interbank message format for single customer credit transfers — essentially a wire transfer confirmation between banks.

Trade Terms

Trade Terms
FOB vs CIF
FOB (Free On Board) and CIF (Cost, Insurance & Freight) are the two most common Incoterms in commodity trade, determining who pays for shipping and insurance.

Petroleum Products

Petroleum Products
EN590
EN590 is the European standard for ultra-low sulphur diesel (ULSD).
Petroleum Products
Jet A-1
Jet A-1 is the internationally standard aviation turbine fuel used by commercial airlines outside North America.
Petroleum Products
Bunker Fuel
Bunker fuel is the heavy fuel oil used to power ocean-going vessels.
Petroleum Products
Brent Crude
Brent Crude is the world's leading oil price benchmark, used to price approximately two-thirds of internationally traded crude oil.

Trade Procedures

Trade Procedures
Soft Probe
An informal, non-binding inquiry used in commodity trade to test a counterparty's interest, capacity, or pricing before any formal document is issued.
Trade Procedures
How EN590 Trading Works
A step-by-step guide to the EN590 diesel trading process — from initial inquiry through SGS inspection, payment, and delivery.
Trade Procedures
Jet A-1 Required Documents
A complete checklist of documents required to trade Jet A-1 aviation fuel internationally — from inspection certificates to payment instruments.

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