How to Write an RFQ for Bulk Petrochemicals That Gets Firm Offers

A good RFQ for bulk petrochemicals states eight things in one message: the product and its specification, the quantity and tolerance, the packaging, the Incoterm and named port, the delivery window, the payment terms, the inspection requirement and the documents you need. Give a supplier all eight and you receive a firm, comparable offer, often within a working day. Leave gaps and you receive questions, assumptions or prices that cannot be compared.

Experienced procurement managers know the pattern: a request goes to six suppliers, six offers return on six different bases (one FOB, one CIF, one at a different quantity, one with a payment term no one asked for), and the first week is spent reconciling them rather than negotiating. A properly built RFQ prevents that. This guide walks through each element in the order a trade desk reads it, explains the decision behind each, and ends with a checklist you can paste into your next enquiry.

What an RFQ is for

An RFQ asks a supplier to commit to a price and terms for a defined purchase. It is not a request for a brochure or an indicative price range. The distinction matters because the more precisely you define the purchase, the more the supplier can quote as a firm offer, meaning an offer they will honour if you accept within a stated validity period.

The test of a good RFQ is simple: could three different suppliers read it and produce offers you can lay side by side in a table, without a single follow-up question? If not, something is missing. The sections below fix that.

1. Product and specification

Start with the exact product, not the family. "Bitumen" or "urea" or "polypropylene" is a category. A supplier needs the grade and the specification it must meet.

What to include

• Product name and grade. For example, a bitumen penetration grade or viscosity grade, a urea type (prilled or granular), a polypropylene grade by application, or caustic soda by form and concentration.
• Governing specification. Name the standard or the specification table you are working to, with edition where it matters, or attach your own specification sheet.
• Critical parameters and limits. List the parameters that decide whether you accept the cargo and the limits for each. Do not list everything; list what would cause you to reject.
• Intended use. One line on the end use helps a supplier flag a mismatch early, for example road paving in a hot climate, or fertiliser blending.
• Acceptable alternatives. If a nearby grade or a different standard is acceptable, say so. If not, say "no substitutes".

Common errors

• Grade without standard. Two suppliers can both sell "60/70" and certify against different documents. See bitumen grades explained.
• Copying a competitor's certificate as the specification. Certificates show what one batch achieved, not the limits you require.
• Over-specifying. Dozens of limits that do not affect your use may disqualify perfectly good product or push the price up.

For tests worth demanding on a bitumen certificate, see bitumen quality tests.

2. Quantity and tolerance

State the quantity in the unit the market trades in (usually metric tonnes) and the tolerance you can accept.

Quantity

• Total quantity for this purchase.
• Single shipment or several. If you want a programme (for example monthly lots), state the number, size and spacing of shipments, and whether you want a price fixed for the whole programme or per shipment.
• Minimum and maximum. If your plant or storage limits the lot size, say so.

Tolerance

Bulk cargoes and packed cargoes rarely load to the exact kilogram, so a tolerance clause avoids disputes. A common form is a percentage, plus or minus, at the seller's option (often written "MOLOO" or "more or less at owner's option" in vessel trades) or at the buyer's option. Decide who holds the option, because it shifts the risk. If you have a hard cap, such as tank capacity or a letter of credit amount, state it and make sure the tolerance does not break it.

Also state how quantity is determined: bill of lading weight, shore tank measurement, draft survey or an inspector's certified figure. Without that, a tolerance clause has no reference point.

3. Packaging

Packaging changes both price and logistics, so it belongs in the first message, not the third.

• Format. Bulk, bags (state weight), jumbo bags, drums, ISO tank containers, flexitanks, or a choice to be priced.
• Palletised or not, and any wrapping requirement.
• Container type and number if shipped in containers, or vessel type if bulk.
• Marking and labelling. Language, batch numbers, hazard labels, your own markings.
• Your handling capability. Say what the destination can unload and reheat or store. A supplier who knows you have no hot-unloading facility will not quote you a format you cannot discharge.

For bitumen specifically, the choice between drums, bags, flexitanks, tanks and bulk vessels is covered in bitumen packaging options. If you cannot decide, ask suppliers to price two named options so you can compare them.

4. Incoterm and port

The Incoterm tells the supplier where its responsibility and cost stop and yours begin. The current edition is Incoterms 2020, and the rule should be named with the edition and a named place, for example "FOB Sohar, Incoterms 2020".

The terms most often used in bulk trade

• FOB (Free On Board): the seller delivers the goods on board the vessel you nominate at the named port of loading. Risk passes when the goods are on board. You arrange and pay for main carriage and insurance.
• CFR (Cost and Freight): the seller pays for carriage to the named port of destination, but risk still passes on board at the origin port. Insurance is yours.
• CIF (Cost, Insurance and Freight): as CFR, with the seller also providing insurance. Under the 2020 rules the minimum cover is limited, so if you need wider cover, state it.
• FCA, CPT, CIP: the variants used for containerised and multimodal cargo, where the goods are handed to a carrier at a place rather than loaded on board a ship.
• DAP and DPU: delivered terms, where the seller carries the cargo to a named place of destination. DPU also includes unloading.

Sea-only terms (FOB, CFR, CIF) are written for conventional sea cargo; for containerised cargo the multimodal terms usually fit better in practice. If you are unsure which suits your cargo, ask the trade desk, and see our guide to Incoterms 2020 for petrochemicals.

Ports

• Name the load port or let the seller offer. Chemineral exports from Sohar and Salalah in Oman. If you have a preference, say so; if not, say "seller's option".
• Name the discharge port exactly, including the terminal if it matters, and state its constraints: draught, vessel size, whether it has the necessary storage, and discharge rate limits.
• Routing. For some destinations the voyage can go via Suez or round the Cape, with different transit times and costs. We quote both side by side, so you can compare time against cost, rather than receiving one figure with the route hidden.

5. Delivery window and laycan

Suppliers cannot commit a firm price without knowing when you want the cargo. Specify the window.

• Vessel cargoes: give a laycan, the earliest date the vessel may be ready to load (laydays) and the latest date by which it must arrive, after which the charterer or buyer may cancel. A narrow laycan costs more because it removes flexibility; a wide one is cheaper but may not suit your stock position.
• Container cargoes: give the shipment month or a ready-by and ship-by date.
• Programmes: state the schedule for each lot.
• Hard constraints: say if there is a fixed deadline, such as a road-building season, a planting season or a letter of credit expiry. A supplier can sometimes meet a hard date by adjusting other terms, but only if it knows about it.

State also what happens if timing slips: whether you accept a later window at the same price, and who bears demurrage or waiting costs if the vessel waits for cargo or for a berth.

6. Payment terms

Payment terms affect price as much as freight does, because they allocate credit risk and financing cost. Say what you propose.

Common structures in bulk trade include:

• Letter of credit at sight. The buyer's bank undertakes to pay against compliant documents. The credit's wording and the documents it requires must match the contract, since the rules for documentary credits are strict. Say whether you expect it confirmed by a second bank.
• Telegraphic transfer (TT). Payment by bank wire, either in advance, as a deposit with the balance before release of documents, or after delivery.
• Documentary collection. Documents are released through banks against payment or acceptance.

Include in the RFQ:

1. your proposed instrument and timing, such as "irrevocable LC at sight" or "30 per cent advance, balance against copy documents";
2. the currency;
3. who pays which bank charges;
4. the latest date for opening the LC if one is used, relative to the shipment window.

If you do not state terms, the supplier will assume its own, and you will find yourself comparing prices on different credit terms. Do not hide your preferred structure to see what comes back; it only prolongs the process.

7. Inspection

Ask for the inspection you want, rather than waiting to see what is offered.

• Pre-shipment inspection at the loading port by an independent inspection company, covering quantity, packaging condition, sampling and sometimes testing.
• Who nominates and who pays. Chemineral offers SGS or Intertek pre-shipment inspection; state your preference, or name another inspector if your contract requires one and ask if it is acceptable.
• What the inspector reports on: quality, quantity, packaging, container condition and seals, loading supervision, sampling.
• Sample handling: number of sealed samples and who holds each.
• Referee laboratory for disputes, and how test tolerances are applied.
• Discharge inspection, if you want a second check at the destination.

Our article on SGS certification for petrochemicals explains what these services involve and how to use them in a transaction.

8. Documents required

List every document you need, because customs, banks and your own plant may each have requirements. A typical list:

• commercial invoice;
• packing list;
• bill of lading (original set, or electronic or sea waybill if agreed);
• certificate of analysis for the loaded batch;
• inspection certificate (quality and quantity) from the named inspector;
• certificate of origin, with any chamber or other attestation required;
• safety data sheet;
• insurance certificate, if the Incoterm is CIF or CIP;
• any destination-specific documents, such as an import licence reference, a conformity certificate or a pre-shipment verification certificate.

Say how many originals and copies you need, who they should be addressed to, and the latest date by which you need the set. If you use a letter of credit, the document list in the RFQ must match the one in the credit.

9. Offer validity and how you want the reply

Ask for a firm offer and state the validity you want. A firm offer is one the supplier will honour for a stated period. Chemineral's firm offers are valid for 72 hours, which gives buyers time to take internal approvals and check freight, but please check what each of your suppliers offers and compare like with like.

Also tell suppliers how to reply:

• Price basis. Currency, per metric tonne, the Incoterm and the place.
• A standard template. Ask for a quote in the same fields in the same order, so it can be pasted into a comparison sheet. The table below shows one that works.
• Deadline for offers, so you collect all responses on the same day.
• Whether you accept alternatives. A supplier may propose a variant (a different packaging or a different routing); invite them to quote it separately and not instead of the main request.

A reply template to include in your RFQ

Mistakes that slow offers down

1. Sending a one-line enquiry ("price for 1,000 tonnes bitumen?"). It gets an indicative answer at best.
2. Mixing Incoterms across a single RFQ without asking for each separately.
3. Leaving out the destination constraints. Draught, storage, unloading and import rules can change what is feasible.
4. Changing the specification after offers arrive. It resets the clock for everyone.
5. Asking for firm offers with no intention to buy, or from suppliers who cannot meet the specification. It wastes goodwill that you may need later.
6. Unclear authority. State who in your company can accept an offer, and how long approval takes.
7. Sending to too many suppliers. A short list of suppliers who can actually meet the specification gets better, faster replies than a broad list.
8. Ignoring documentation. A cargo that is right but has the wrong paperwork can be stuck at the border or fail to be paid under the credit.

A sample RFQ in plain language

The following shows the level of detail that works. Adapt the content to your product.

• Subject: RFQ: Bitumen 60/70, 2,000 MT, FOB Sohar, Incoterms 2020, shipment Q1
• Product: penetration grade 60/70, to be certified against [named specification, edition]. Critical parameters: penetration, softening point, ductility, flash point, solubility, mass change and retained penetration after RTFOT.
• Quantity: 2,000 MT, plus or minus 10 per cent at seller's option. Quantity determined by [method].
• Packaging: [format], with the alternative priced separately.
• Terms: FOB Sohar, Incoterms 2020; also quote CFR [named port].
• Shipment window: [dates].
• Payment: irrevocable LC at sight, opened [number] days before the window; bank charges as agreed.
• Inspection: SGS or Intertek pre-shipment inspection, quality and quantity, with sealed retained samples.
• Documents: invoice, packing list, bill of lading, certificate of analysis, inspection certificate, certificate of origin, SDS.
• Offer: firm, with at least 72 hours' validity, replies by [date and time].

The quantities and terms in that example are placeholders to show layout, not a recommendation.

Frequently asked questions

How detailed should the specification be?

Detailed enough that a supplier can say yes or no to your requirement without calling you. Name the grade, the governing standard and the handful of parameters that decide acceptance. Attach your full specification sheet if you have one, but do not make suppliers hunt for the critical items.

Should I quote my target price in the RFQ?

Usually not at the first round. Invite offers and compare them on the same basis. If you do have a firm budget ceiling, state it privately in negotiation rather than in a message to every supplier.

What is the difference between an indicative and a firm offer?

An indicative offer is a guide that the supplier may change. A firm offer is one the supplier commits to honour for a stated validity period if you accept in time. Ask for firm offers and check how long they stay open.

Do I need to name the load port?

Not necessarily. If several load ports are possible, you can leave it at the seller's option. Chemineral ships from Sohar and Salalah, so tell us if you have a preference. If your destination or schedule favours one, say so.

What if I do not know the packaging my port can handle?

Say so, and describe your unloading and storage set-up. Ask the supplier to price the realistic options so you can compare them. A good trade desk will tell you which options do not suit your site.

How many suppliers should I send the RFQ to?

Enough to get real competition, but few enough that each takes the enquiry seriously. A short list of suppliers who can actually meet your specification beats a mass mailing.

Send us your RFQ

If you have a specification, a quantity and a destination, you have enough to start. Send your RFQ to the Chemineral trade desk through our contact page. We issue firm offers valid for 72 hours and quote Suez and Cape routing side by side, with SGS or Intertek pre-shipment inspection available on request.

RFQ checklist

Before you send, confirm that your message states:

1. product, grade and governing specification, with the critical limits;
2. quantity, tolerance, who holds the option and how quantity is measured;
3. packaging format and your unloading and storage capability;
4. Incoterm 2020 rule with a named place, and the discharge port with its constraints;
5. loading port preference (Sohar, Salalah or seller's option) and routing preference;
6. delivery window or laycan, plus any hard deadline;
7. payment instrument, timing, currency and bank charges;
8. inspection requirement, sampling and referee laboratory;
9. documents required, copies and deadline;
10. firm-offer validity requested, reply deadline and reply template.