Every day, intermediaries circulate sugar offers at prices per metric ton that look excellent on paper. Most of them ignore a basic rule of this business: there is only a margin if the cargo is delivered.
Once freight, insurance, inspection and proper banking procedures are added, many of these offers cannot be executed. They are designed to attract attention, often by parties with no real capacity to ship.
For the buyer, the margin appears when the sugar is imported and cleared in the destination country. That only happens if the supplier gets the vessel to port.
- No delivery, no margin.
- Broken supply chains and empty warehouses.
- Time and resources lost for everyone involved.
How we structure execution
We supply Brazilian ICUMSA 45 under FCO and SPA, backed by a payment guarantee from the buyer’s bank: SBLC (MT760), DLC (MT700) or MT799 blocked funds for one year. We do not request advance payments. The guarantee is only a guarantee: each shipment is paid by MT103 after SGS inspection of quality and quantity at the port of loading and receipt of the shipping documents.
Once the buyer’s instrument is confirmed, we issue a 2% Performance Bond in favour of the buyer. Both parties are committed from the start.
If you want to work with a supplier focused on execution, send your inquiry.
