The Grain and Feed Trade Association (GAFTA) and the Federation of Oils, Seeds and Fats Associations (FOSFA) set the contractual framework for the vast majority of international commodity trade. Their standard form contracts covering everything from quality specifications and discharge terms to dispute resolution and force majeure are recognized by courts and arbitration panels in over 90 countries.

In 2024 and into 2025, both associations updated guidance on several key areas. GAFTA clarified its arbitration timeline procedures, reducing ambiguity around the 14-day notice window for quality claims following vessel discharge. FOSFA issued supplementary guidance on contamination liability in multi-parcel oil shipments, particularly relevant for palm and sunflower oil cargoes transiting multiple ports.

For buyers, the practical implication is straightforward: ensure your trading counterparty operates under current GAFTA or FOSFA terms, and that your contract clearly specifies which edition applies. Outdated references to older contract editions have been a source of disputes in recent years, particularly in markets where legal interpretation of English-language contracts varies.

CAPA Trading Corp operates exclusively under current GAFTA and FOSFA standard terms on all grain and oil transactions. Every contract includes clearly specified quality parameters, loading port, discharge port, Incoterms 2020 basis, and payment instrument requirements - reviewed by our compliance team before execution.