TTT vs TTV: Which Petroleum Transaction Type is Right for You?

Browse petroleum offers for five minutes and you'll see "TTT available" and "TTV preferred" scattered everywhere. If you're new to petroleum trading, these acronyms probably mean nothing to you. But understanding the difference between Tank-to-Tank and Tank-to-Vessel transactions determines whether an offer is actually relevant for your situation – or whether you're wasting time on something that won't work.

The good news is that TTT versus TTV isn't complicated once you understand what each one means. And for most buyers, your location and storage situation will make the choice obvious.

What Do TTT and TTV Actually Mean?

Tank-to-Tank (TTT) means the product transfers directly from the seller's storage tank into your storage tank. Both tanks are at the same terminal or nearby locations. The diesel never leaves the storage facility area – it just moves from one tank to another through pipelines. Think of it like moving money between bank accounts at the same bank. The fuel stays in the terminal; only the ownership changes.

Tank-to-Vessel (TTV) means the product is loaded from the seller's storage tank onto a ship for transportation to your destination port. The fuel physically moves from where it's stored to where you need it. This is what most people imagine when they think about petroleum trading – tankers crossing oceans carrying fuel from origin to destination.

The fundamental difference is whether the product stays put (TTT) or travels to you (TTV).

Comparing TTT and TTV

Let's look at how these transaction types compare across the factors that actually matter:

Speed is the most obvious difference. TTT transactions complete in days. You verify the product, coordinate the tank transfer, and it's done. The whole process from agreement to ownership transfer might take 2-5 days. TTV transactions take weeks. You need to arrange vessel charter, schedule loading, ship the product (which alone can take 1-4 weeks depending on distance), and then discharge at your port. The timeline stretches to 2-6 weeks or more.

Cost differences are substantial. TTT is cheaper because you're not paying for shipping. Your costs are the product price plus minimal transfer fees and maybe some storage charges if there's delay. TTV adds significant expenses: vessel charter costs that can easily exceed $100,000 for large volumes, port fees at both loading and discharge ports, marine insurance, Charter Party Agreement costs, and demurrage risk if the vessel gets delayed. These shipping costs typically add $20-50 per metric ton depending on the route and volume.

Your requirements differ dramatically between the two. For TTT, you must have access to tank storage at the seller's location or very nearby. If you don't have storage there, TTT is impossible. For TTV, you need either your own vessel or the ability to charter one, plus arrangements at your destination port for discharge and receiving the product.

Complexity favors TTT. It's a straightforward transfer with fewer moving parts – basically just tank coordination and ownership documentation. TTV involves vessel chartering, Charter Party Agreements, Bills of Lading, marine insurance, multiple port authorities, and coordinating timing across all these elements. More complexity means more things that can go wrong.

When Tank-to-Tank Makes Sense

TTT works when you have storage access at or near where the seller's product is located. This typically means you're a fuel distributor operating in the same region as the seller, a reseller or trader who maintains inventory at major terminals, or a buyer who's set up storage relationships at key trading hubs.

The speed advantage of TTT matters most when you need fuel quickly. If you're running low on inventory and need to restock within days, waiting weeks for vessel shipment doesn't work. TTT lets you complete transactions in the timeframe you need.

Traders particularly favor TTT because it allows inventory building. You can buy product, hold it in storage, and resell when market conditions are favorable. The relatively low cost of TTT compared to TTV means your margins can support multiple transactions and storage fees.

Here's a concrete example: you're a fuel distributor in Rotterdam with contracted storage space at the port. A supplier offers EN590 diesel, also stored in Rotterdam. TTT is perfect for this situation. The transfer happens in 1-2 days through the terminal's pipeline system. No shipping costs. Minimal complexity. You can verify product one day and own it the next.

When Tank-to-Vessel is Necessary

TTV becomes necessary when you're importing fuel from a different country or region. If you're buying product stored in Houston but you operate in Asia, TTT is impossible – you don't have Houston storage and the product needs to physically travel to you. TTV is your only option.

End users who need fuel delivered to their location typically require TTV unless they happen to operate in the same port city as the seller. If you're buying diesel for your distribution network in Singapore, and the product originates from Europe or the Middle East, that fuel has to travel by ship.

Larger volumes often justify the complexity and cost of TTV better than smaller purchases. Chartering a vessel for 10,000 metric tons might cost $200,000, adding $20 per MT to your cost. Chartering for 50,000 MT might cost $600,000, adding only $12 per MT. The economies of scale make TTV more viable for substantial purchases.

Consider this scenario: you're buying EN590 diesel from a supplier in Fujairah, UAE, and you need it delivered to your terminal in Thailand. You don't have storage in Fujairah, and even if you did, you ultimately need the fuel in Thailand. TTV is the only practical approach. The seller loads product onto a vessel, ships it across the Indian Ocean, and discharges at your Thai port. The transaction takes 3-4 weeks and costs significantly more than the product price alone – but it's the only way to get fuel from point A to point B.

The Real Cost Breakdown

Understanding actual costs helps you evaluate offers properly. TTT costs are straightforward: you pay the product price (usually quoted FOB or at terminal), verification costs if you're doing dip tests or SGS inspection (maybe $2,000-5,000), tank transfer fees which are typically minimal (a few hundred to a few thousand dollars), and storage fees if there's any delay before you move the product out.

TTV costs stack up quickly. Start with the product price. Add vessel charter or freight costs – this varies enormously based on route, volume, and market conditions, but expect $100,000+ for substantial volumes. Port fees apply at both loading and discharge ports. Marine insurance protects against loss during transit. You need a Charter Party Agreement which involves legal and coordination costs. And there's demurrage risk – if the vessel is delayed during loading or discharge beyond the agreed laytime, you might pay $10,000-50,000 per day in penalties.

A realistic example: you're buying 10,000 MT of diesel at $550 per MT, so the product cost is $5.5 million. For TTT, your additional costs might total $10,000-20,000 (verification, transfer, minor storage). For TTV on a medium-distance route, freight might add $300,000, port fees another $50,000, insurance $20,000, and various other costs bringing total additional expenses to $400,000+. That's $40 per MT added to your cost for shipping versus $1-2 per MT for TTT.

How Long Each Actually Takes

Timeline differences matter for planning and cash flow. TTT moves fast: you verify product exists and meets specs (1-2 days), coordinate with the terminal to schedule tank transfer (same day to 1 day), execute the transfer (1-2 days), and confirm ownership documentation. From start to finish, expect 2-5 days for most TTT transactions. Some complete even faster when all parties are ready and the terminal has availability.

TTV requires patience. Product verification still takes 1-2 days. Then you arrange vessel charter or booking, which takes 3-7 days if you don't already have a vessel relationship. Loading the vessel takes 1-3 days depending on volume and port operations. Shipping time varies dramatically by distance – Houston to Rotterdam might take 2 weeks, Middle East to Asia might be 10 days, longer routes can stretch to 3-4 weeks. Discharge at destination adds another 1-2 days. The total timeline typically runs 2-6 weeks, and that assumes nothing goes wrong. Port delays, weather, or scheduling issues can extend it further.

Making the Choice

For most buyers, this isn't really a choice – your situation dictates which transaction type you need. Ask yourself a few simple questions and the answer becomes obvious.

Do you have tank storage at the seller's location? If yes, TTT becomes possible and might be preferable for speed and cost. If no, you're limited to TTV unless you're willing to set up storage (which takes weeks or months and isn't practical for one-off purchases).

Is the seller in your same region or country? If you're both in Rotterdam, or both in Houston, or both in Singapore, TTT makes perfect sense. If the seller is in one continent and you're in another, geography forces TTV.

Do you need the fuel quickly? If you're in a rush and storage access exists, TTT delivers in days. If you can wait weeks, TTV timelines are fine.

Are you reselling or are you the end user? Traders and resellers often prefer TTT because it lets them hold inventory and control timing of final sales. End users typically just want the fuel delivered to their location, making TTV more natural.

Here's the bottom line: most international petroleum purchases are TTV because most buyers are importing from distant origins. TTT is more common among professional traders, distributors with regional presence, and buyers operating in the same location as sellers. Neither is "better" – they serve different situations.

The Practical Reality

In practice, sellers often offer what makes sense for their business and location. A refinery or major trader in Rotterdam with substantial storage will easily accommodate TTT transactions with local buyers. That same seller shipping internationally defaults to TTV because that's how you get product from Rotterdam to Asia or the Americas.

As a buyer, be clear about your needs when requesting quotes. Specify whether you need delivery to your location (TTV) or if you have storage access and prefer tank transfer (TTT). Don't waste time on offers for the wrong transaction type.

And understand that your choice affects everything else in the transaction. TTT typically involves simpler contracts, faster timelines, and lower total costs but requires storage capability. TTV involves more complex contracts with vessel terms, longer timelines, higher costs, but solves the fundamental problem of getting fuel from where it is to where you need it.

Take Action

When you submit an RFQ on CommoditiesHub, specify your delivery requirements clearly. Tell suppliers whether you need delivery to your destination port (TTV) or if you have storage access and prefer tank transfer (TTT). Our verified suppliers handle both transaction types and will help you structure the deal appropriately for your situation.

Most importantly, don't let transaction type confusion prevent you from getting the fuel you need. Focus on where the product needs to end up, what timeline you're working with, and what storage capabilities you have. The right transaction type will be obvious.