Petroleum Trading Timeline: How Long from RFQ to Delivery?
Your operations need 10,000 metric tons of diesel in six weeks. Can you source it, negotiate, verify product, arrange payment, and get it delivered in that timeframe? Maybe – but only if you understand what each stage actually takes and where delays happen.
Too many buyers start procurement processes based on wildly optimistic timelines, then discover that banking alone takes three weeks, or that shipping from Houston to Singapore requires a month. This guide breaks down realistic timelines for each stage of petroleum procurement so you can plan properly and avoid expensive rush situations or missed deadlines.
Timeline by Transaction Type
Before diving into details, here's what you're looking at for complete procurement cycles. FOB Tank-to-Tank (TTT) transactions are the fastest at 2-4 weeks total since there's no shipping involved – just tank-to-tank transfer at the same terminal or nearby location. FOB with buyer-arranged shipping takes 4-8 weeks depending on your shipping efficiency and destination distance. CIF transactions where the seller handles shipping run 4-10 weeks depending on the route and destination.
And if you're doing your first transaction requiring an SBLC, add 3-4 weeks to any of these estimates just for the banking process. This is why experienced traders avoid SBLC requirements for initial deals when possible – the timeline impact is substantial.
From Inquiry to Initial Quote: 1-3 Days
You send an RFQ (Request for Quote) or ICPO detailing what you need. The seller reviews your requirements, checks product availability, and provides an initial quote or formal offer. In the best case with responsive sellers, you get a quote the same day or within 24 hours. Normal response times run 2-3 days. Slow sellers might take up to a week, and if you're waiting that long, you should probably be talking to other suppliers simultaneously.
What affects this timing? Seller responsiveness is the biggest factor – some suppliers answer within hours, others take days to respond to any communication. Complex requirements take longer to quote than standard product requests. And market conditions matter – in tight markets with high demand, sellers respond faster because deals are moving quickly.
Your control over this stage is simple: choose responsive suppliers and provide clear, complete requirements upfront so sellers don't need to ask clarifying questions.
Negotiation and Agreement: 3-10 Days
Once you have a quote, negotiations begin on price, terms, delivery conditions, payment methods, and all the other contract details. Both parties review and revise contract language, legal teams might get involved, and eventually you sign the Sales and Purchase Agreement (SPA).
Simple deals between aligned parties close in 3-5 days. Standard negotiations where you're not too far apart run 5-7 days. Complex terms, first-time relationships, or significant gaps in initial positions can stretch negotiations to 1-2 weeks or longer.
Speed this up by knowing your requirements and limits upfront. Don't start negotiations without internal approval on price range, payment terms you can accept, and delivery requirements. Respond quickly to proposals and counterproposals. Delays on your side slow the process as much as delays on the seller's side.
Banking Instruments (If Required): 2-4 Weeks
If your deal requires an SBLC or Letter of Credit, this becomes the longest single stage of the entire process. You apply to your bank, they conduct credit review and approval, draft the instrument terms, get internal approvals, and finally issue and transmit it to the seller's bank via SWIFT.
If you have existing credit facilities with your bank, expect 1-2 weeks minimum. New credit applications without existing relationships take 3-4 weeks. First-time international LCs where your bank doesn't regularly work with the beneficiary's bank can stretch to 4-6 weeks with all the compliance checks and coordination required.
This is why so many first deals don't use SBLC even when sellers prefer it. The timeline impact is too severe for buyers who need fuel quickly. Work with your bank early if SBLC is required, ideally establishing credit facilities before you start sourcing product. And understand that many deals skip this stage entirely by using simpler payment methods or building trust through smaller initial orders.
Product Verification: 2-5 Days
The seller provides Proof of Product documents including SGS reports, Tank Storage Receipts, and authorizations. You verify these documents by calling SGS, contacting the terminal, and checking authenticity. If you're conducting a dip test, that requires scheduling, travel to the site, the inspection itself, and potentially laboratory analysis of samples.
Document review alone takes 1-2 days if you're efficient about calling SGS and the terminal for verification. Adding a dip test extends this to 3-5 days between scheduling, conducting the inspection, and getting basic results. Comprehensive inspection with full laboratory analysis can take 5-7 days.
Your control here is scheduling inspections early while contracts are being finalized, being ready to act immediately on verification results, and not dragging out the verification process with slow decision-making once results come back.
Payment: 1-2 Days
Once verification is complete and all conditions are met, you issue payment instructions to your bank. They process the wire transfer and the seller confirms receipt. Same bank, same country transfers can clear same-day. Different banks in the same country typically take 1 business day. International wire transfers run 1-2 days depending on correspondent banking relationships and time zones. LC payments take 2-3 days as banks verify documents and process the letter of credit.
Banking holidays, compliance checks on large international transfers, and weekend timing can all extend these periods. Initiate payment promptly when conditions are met rather than waiting until the last moment of your contractual deadline.
Delivery: Hours to Weeks
Here's where timelines diverge dramatically based on transaction type.
Tank-to-Tank (TTT): 1-3 Days
For tank-to-tank transfers, the terminal schedules the injection operation, product physically transfers between tanks through pipelines, the injection report is issued, and title transfers to you. This typically completes 1-3 days after payment. It's the fastest delivery option since product is already at the terminal and just moves from one tank to another.
Vessel Loading and Shipping: 2-6 Weeks
For tank-to-vessel or CIF transactions, the timeline extends significantly. Loading alone takes 3-7 days from when the vessel arrives at the origin port through loading operations and departure with the Bill of Lading.
Shipping time varies enormously by route. Regional shipments like Gulf Coast to Caribbean or Rotterdam to Mediterranean run 3-7 days. Medium-distance routes like Houston to Europe or Middle East to Asia take 1-2 weeks. Long-distance routes such as Houston to Asia or Europe to Far East require 3-4 weeks of ocean transit.
Then add discharge time of 2-3 days at the destination port for arrival, customs clearance, quality inspection, and unloading.
Real-World Timeline Examples
A simple domestic tank-to-tank transaction with no SBLC might look like this: inquiry to quote (2 days), negotiation and contract (5 days), product verification (3 days), payment (1 day), tank transfer (2 days). Total: 13 days or under two weeks. This is the fastest realistic scenario.
On the opposite end, a first-time international CIF purchase with SBLC requirement might run: inquiry to quote (3 days), negotiation (7 days), SBLC application and issuance (28 days), product verification (4 days), payment (2 days), loading (5 days), shipping Houston to Singapore (25 days), discharge (3 days). Total: 77 days or 11 weeks.
A middle scenario with established relationships might be FOB with buyer-arranged shipping and no SBLC: quote (1 day), contract (3 days), verification (3 days), payment (1 day), loading (4 days), shipping (14 days), discharge (2 days). Total: 28 days or 4 weeks.
What Causes Delays
Banking delays are the most predictable problem – SBLC and LC processing simply takes weeks, and there's limited ability to rush it. Document issues where paperwork is incorrect or missing can stop everything until resolved. Verification problems arise when product doesn't verify as claimed and you need to find alternatives. Payment delays happen when wire transfers get held up in compliance checks or banking system delays.
Vessel delays from port congestion, weather, or mechanical issues are common in international shipping. Customs problems at discharge ports due to documentation issues or inspection findings can hold up delivery. Communication gaps where either party responds slowly or requirements aren't clear add time to every stage. And decision delays from slow internal approvals on either buyer or seller side stretch out the timeline.
How to Minimize Timeline
Know your exact requirements before starting procurement so you don't waste time in back-and-forth clarifications. Work with responsive suppliers who answer quickly and move deals forward efficiently. Have banking relationships established before you need SBLC or LC so you're not starting from scratch. Respond quickly to requests, quotes, and document needs rather than letting days pass between communications.
Use experienced freight forwarders for shipping arrangements if you're handling logistics yourself. Prepare your company documents, banking information, and internal approvals in advance so you're ready when needed. Build relationships with suppliers – the second purchase is dramatically faster than the first when you've established trust and processes. Avoid complex payment structures for first deals; keep it simple to move faster. And choose closer origins if timing is critical – regional shipping is much faster than intercontinental.
Unrealistic Timeline Red Flags
Be immediately suspicious if sellers promise delivery in 48 hours from agreement. This is unrealistic for almost any scenario except perhaps local TTT with product already verified and ready. Claims of "SBLC issued and product delivered within 5 days" are impossible – banking alone takes longer than that. Promises of instant loading and immediate shipping ignore logistics realities. And "product at your port tomorrow" on international orders is fantasy.
These unrealistic timelines suggest the seller doesn't understand actual logistics, is making false promises to close the deal, or is running a scam. Professional sellers provide honest, realistic timelines even when those timelines are longer than you'd prefer. Trust sellers who tell you the truth about timing over sellers who promise impossible speed.
Planning Your Procurement
Work backwards from when you need fuel delivered. If you have a critical deadline, add 30-50% buffer to estimated timelines to account for inevitable delays. Plan for things going wrong rather than assuming best-case scenarios. Consider backup suppliers in case your primary option falls through.
For first-time international purchases, allow 10-12 weeks minimum from starting procurement to having fuel in hand. Don't bet your operations on fastest-case scenarios. Build in flexibility where possible.
For ongoing supply relationships, understand that the first purchase takes longest while you establish processes, build trust, and work through all the steps. Subsequent orders move much faster when relationships and procedures are in place.
Bottom Line
Realistic petroleum procurement timelines range from 2-3 weeks at the fastest (TTT with no banking complications and established relationships) to 8-12 weeks for international CIF transactions requiring SBLC. Standard domestic deals without SBLC typically run 4-6 weeks.
The stages that consume the most time are banking instruments (2-4 weeks for SBLC/LC), international shipping (2-6 weeks depending on route), and negotiation plus verification (1-2 weeks combined). Everything else is measured in days.
Plan procurement by working backwards from your deadline and adding 30-50% buffer to account for delays. Build supplier relationships to speed up repeat orders. Avoid banking instruments for first deals if possible to eliminate that 3-4 week timeline impact.
And absolutely don't believe promises of instant delivery. Petroleum logistics take time. Physics and banking systems don't care how urgently you need fuel – vessels still take three weeks to cross oceans, and banks still take two weeks to issue SBLCs.
Start your procurement process well in advance of when you actually need the fuel. The cost of starting early is minimal. The cost of starting too late is missed deadlines, rush fees, or settling for worse suppliers because you're desperate.
Take Action
Submit an RFQ on CommoditiesHub today and receive realistic quotes with honest delivery timelines from verified suppliers. Professional sellers provide accurate timeline expectations so you can plan properly. Start your procurement early and work with suppliers who respect reality rather than making impossible promises.