Understanding TSA (Tank Storage Agreement) and TSR (Tank Storage Report) in Petroleum Transactions
Petroleum trading requires strict procedures, verified documentation, and disciplined execution. However, the misuse of certain documents has created confusion and enabled fraudulent practices in global oil markets. In particular, misunderstandings around TSA (Tank Storage Agreement) and TSR (Tank Storage Report) frequently disrupt legitimate transactions involving ULSD 10 PPM and JET A1.
Therefore, understanding what these documents actually represent—and what they do not—is essential for secure petroleum trade.
What TSA and TSR Really Mean in Petroleum Trade
The following table clarifies the correct definitions and legal scope of TSA and TSR:
| Abbreviation | Full Form | Explanation |
|---|---|---|
| TSA | Tank Storage Agreement | A confidential and legally binding contract between a product owner and a tank storage facility. It defines storage terms but does not prove ownership for third parties. |
| TSR | Tank Storage Report | A report issued by the tank operator confirming stored quantity and quality at a specific moment. It does not transfer ownership or sales rights. |
Importantly, both TSA and TSR remain strictly confidential. Sharing these documents with brokers, third parties, or unknown buyers violates commercial confidentiality and may trigger legal consequences. Consequently, legitimate sellers never distribute TSA or TSR documents publicly.
False Sales Procedures and Industry Misconceptions
Unfortunately, many fraudulent petroleum offers rely on fabricated sales procedures that misuse TSA and TSR terminology. This problem appears most frequently in ULSD 10 PPM and JET A1 trading.
However, real refinery sales do not operate based on TSA- or TSR-driven procedures.
Common red flags include:
- Unrealistic payment structures
- Unauthorized intermediaries
- Requests for TSA or TSR as “proof of product”
- Complex document chains with no physical verification
In reality, refineries and legitimate suppliers follow clear, simple, and verifiable procedures. As a result, buyers should immediately reject any offer that depends on circulating TSA or TSR documents.
Why “Dip and Pay” Remains the Only Secure Method
In professional petroleum trading, the most reliable method continues to be Tank Test and Pay (Dip and Pay).
Under this method:
- The buyer physically verifies the product in the tank
- Independent inspectors confirm quantity and quality
- Payment follows verification—not promises
Therefore, Dip and Pay eliminates uncertainty and prevents document-based fraud. Any procedure that avoids physical verification should raise serious concerns.
The Role of SGS, INTERTEK, and SAYBOLT
Independent inspection companies such as SGS, INTERTEK, and SAYBOLT play a critical role in petroleum transactions. However, traders often misunderstand their function.
These companies:
- Verify fuel specifications and quality
- Confirm compliance with industry standards
- Provide laboratory and field analysis
However, they do not confirm ownership. An SGS or INTERTEK report only proves product quality, not who owns or controls the fuel. Consequently, relying on inspection reports as ownership evidence creates serious risk.
Best Practices for Secure ULSD 10 PPM and JET A1 Trade
To conduct safe and professional petroleum transactions, traders should follow these principles:
- Work only with verified refineries or authorized suppliers
- Reject TSA- or TSR-based sales procedures
- Insist on Dip and Pay execution
- Use internationally recognized inspection firms
- Maintain strict document confidentiality
As a result, traders significantly reduce fraud exposure and operational risk.
The Role of Professional International Trade Companies
Experienced international trade companies add real value to petroleum transactions. They do not circulate documents blindly. Instead, they:
- Connect verified buyers with legitimate suppliers
- Structure logistics and compliance
- Manage operational and financial risk
- Protect both sides of the transaction
Moreover, professional trade companies insist on tank verification followed by immediate payment, ensuring transparency and execution certainty.
Conclusion
Petroleum trading demands clarity, discipline, and real verification. The misuse of TSA and TSR documents continues to fuel fraud and confusion in ULSD 10 PPM and JET A1 markets. However, traders who rely on Dip and Pay, independent inspections, and professional trade partners protect themselves effectively.
Ultimately, real products, real inspections, and real payments remain the foundation of secure petroleum trade. Any transaction that avoids these principles should be treated with caution.