FOSFA is the Federation of Oils, Seeds and Fats Associations, a London-based trade body. Its standard contracts and arbitration govern much of the world’s trade in oilseeds, vegetable oils and animal fats. This guide explains what FOSFA does, its contracts and arbitration, membership, the FOSFA previous-cargo lists and why they matter to tanker crews and surveyors.
What Does FOSFA Stand For?
FOSFA stands for the Federation of Oils, Seeds and Fats Associations, trading as FOSFA International. It was incorporated in 1968, has worked under that name since 1971 and is based in the City of London.
FOSFA has more than 1,200 members in about 90 countries. They include producers, processors, traders, brokers, analysts and surveyors.
What Does FOSFA Do?
FOSFA writes standard trade contracts, runs arbitration for disputes under them and sets technical rules for shipping oils and fats. It also trains people in the trade.
- Contracts: standard forms for buying and selling oilseeds, oils and fats, written “by the trade for the trade”.
- Arbitration: legally binding dispute resolution, with arbitrators drawn from the trade.
- Technical rules: the previous-cargo lists, the Qualifications and Operational Procedures for ships, sampling rules and the FOSFA Manual.
- Member schemes: approved analyst laboratories and superintendents who sample, test and inspect cargoes and tanks.
- Education: courses, including a residential course on the oils and fats trade.
What Are FOSFA Contracts?
FOSFA contracts are standard sale contracts for oilseeds, oils and fats, each identified by a number. FOSFA’s April 2024 list has 55 numbered contracts, mostly on CIF or FOB terms.
| Contract | Covers |
|---|---|
| FOSFA 4 | Oilseeds, FOB terms |
| FOSFA 4A | European oilseeds, FOB terms |
| FOSFA 11 | Oilseeds, CIF terms |
| FOSFA 22 | South American soyabeans, C&F terms |
| FOSFA 28 | Oilseeds, free delivered terms |
| FOSFA 33 | Flexitanks and general-purpose freight containers |
| FOSFA 51 | Argentine soft oils, FOB terms |
| FOSFA 53 | Vegetable and marine oil, FOB terms |
| FOSFA 54 | Vegetable and marine oil, CIF terms |
| FOSFA 80 | Crude unbleached palm oil, CIF terms |
| FOSFA 81 | Palm and palm kernel oil products |
Under CIF terms the seller arranges and pays for freight and insurance to the destination port. Under FOB terms the buyer arranges the ship, and risk passes once the goods are loaded on board.
Each contract sets quality, quantity, shipment, sampling, analysis, payment and dispute terms. It also states which previous-cargo list applies to the ship’s tanks.
How Does FOSFA Arbitration Work?
FOSFA arbitration resolves disputes under FOSFA contracts through arbitrators from the trade, with London as the seat. Most cases are two-tier, with a first-tier award and a right of appeal.
- Two-tier: the normal route, with a first-tier tribunal and an appeal stage.
- Small claims: a single-tier procedure with a sole arbitrator and no appeal.
- Brokerage disputes: a separate set of rules for commission and brokerage claims.
- Time limits: commonly 90 days from discharge for quality claims and one year for other claims. The rules in force when the contract was made apply.
Arbitrators are chosen from FOSFA’s panel of experienced members. Awards can be enforced through the courts where the losing party has assets.
Who Can Join FOSFA?
FOSFA membership is open to companies and individuals in the oils, seeds and fats trade. There are six categories: trading, non-trading, analyst, superintendent, broker and kindred associations.
Members get access to the contracts, rules and members’ directory, plus discounted training. Applicants usually need two existing members to support the application.
What Are the FOSFA Banned and Acceptable Lists?
FOSFA publishes two previous-cargo lists for ships’ tanks: one of banned cargoes and one of acceptable cargoes. The contract says which list applies.
- The FOSFA banned list names products that must not be the immediate previous cargo, with extra rules on earlier cargoes.
- The FOSFA acceptable list names the only products allowed as previous cargoes when the contract uses it.
Both lists are revised regularly. The version in force on the bill of lading date applies.
What Is the Difference Between FOSFA and GAFTA?
FOSFA covers oilseeds, vegetable and marine oils and animal fats, while GAFTA covers grains, animal feed, pulses and rice. Both are London-based and run standard contracts and arbitration.
Their ranges overlap at oilseeds such as soyabeans, where both publish contracts. See what is GAFTA for its contracts and rules.
Why Does FOSFA Matter to Ships and Surveyors?
FOSFA rules decide whether a ship’s tanks may load an oil or fat cargo, based on the previous cargoes and tank coating. A rejected tank means delay, cleaning costs or a lost fixture.
Since 1 January 2007, most vegetable oils have been carried as noxious liquid substances under MARPOL Annex II, mainly in chemical tankers. Before loading, a superintendent typically checks:
- The last three cargoes in each tank against the contract’s list.
- Tank coating type and condition, because stainless steel and coated tanks have different rules.
- Cleanliness: tanks clean, dry and odour-free, with heating coils and lines drained.
- Documents: previous-cargo records and cleaning certificates.
Samples are drawn to FOSFA sampling rules and sealed for analysis by FOSFA member laboratories.
Related Topics
- Vetting Inspection on Tankers
- Major Shipping Routes in Global Trade
- Oil Tanker Types and Classification
Frequently Asked Questions
What does FOSFA stand for?
FOSFA stands for the Federation of Oils, Seeds and Fats Associations. It trades as FOSFA International and is based in London.
What does FOSFA do?
FOSFA publishes standard contracts for the trade in oilseeds, oils and fats, runs arbitration for disputes under them and sets technical rules such as the previous-cargo lists for ships’ tanks.
How many members does FOSFA have?
FOSFA has more than 1,200 members in about 90 countries, including producers, traders, brokers, analysts and surveyors.
What is FOSFA 54?
FOSFA 54 is the standard contract for vegetable and marine oils on CIF terms. FOSFA 53 is the matching contract on FOB terms.
What is FOSFA 80?
FOSFA 80 is the contract for crude unbleached palm oil on CIF terms, issued with the Malaysian Palm Oil Association. FOSFA 82 covers the same product on FOB terms.
Where is FOSFA arbitration held?
FOSFA arbitration is seated in London. Most cases use a two-tier process with a right of appeal, and small claims use a single sole arbitrator.
What is the difference between FOSFA and GAFTA?
FOSFA covers oilseeds, oils and fats, while GAFTA covers grains, feed, pulses and rice. Both are London-based trade bodies with standard contracts and arbitration.
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