CMA/SMA
OBQS have been successfully providing, CMA & SMA Expediting for Oil related Products since 2004.
When tasked, we can set up trade facilitation support services according to Client requirements, including Collateral Management Agreement (CMA) services and Stock Monitoring Agreement (SMA) services.
Collateral Management Agreement (CMA) Services
CMA services are formed between a financier (bank) if goods are pledged to bank and finance transactions are involved between Bank and owner of goods whose goods are pledged to bank, a depositor/borrower (owner of the goods pledged to bank), the collateral manager (OBQS) and the warehouse provider (storage provider for Third party storage). A Collateral Management Agreement (CMA) is signed between parties. CMA services facilitate the import and export of trade of petroleum products (also could be agricultural, fertilizer, raw material, and many other commodities although we specialise in oil). Under CMA, the physical commodity is received into the designated storage facility and retained under exclusive custody until the collateral manager is instructed by the bank or the borrower to release (partially/totally) the commodity.
Scope of work under CMA services:
- Preliminary inspection and due diligence of the storage facility assuring suitability for storage of proposed goods
- Supervision of filling / receiving of goods into the storage facility
- Issuance of measurement receipts
- Daily verification of the product quantity, and quality where appropriate
- Supervision of all inbound/outbound movement of the product upon receipt of appropriate written instructions
- Recording and reporting of in/out movement of the product
Stock Monitoring Agreement (SMA) services
OBQS also provides stock monitoring services for verification of quality and quantity of stored commodities. The Stock Monitoring Agreement is signed between the parties involved. The commodities under SMA are generally not held under exclusive custody. The documents related to commodities storage/movement are verified and validated by the SMA provider (Expediting company). The in/out movement of commodities is duly supervised and reported to the Client.
Why use OBQS versus a local Inspection Company? It comes down to TRUST
- OBQS have an excellent industry reputation for producing efficient and effective product control to minimise Risk.
- All personnel are thoroughly vetted, then on-boarded and further trained to provide high standard work output, as well as to ensure honesty, loyalty, and discretion.
- We are trusted by many Oil Majors, Major Traders, some NOC’s to handle multi-million dollar commodities, and our reports are regularly used by Banks and Insurers alike.
