Date: May 2024 – September 2024
Deal Type: Cross-Border Sourcing & Transaction Oversight
Volume:
25,000 MT (spot deal with option for rolling extension)
Commodity White Refined Sugar – ICUMSA 45
Route: Brazil to East Africa
Facilitated from: London
Commodity Procurement
Background
In Q2 2024, Auctora was approached by a procurement company in East Africa acting under contract with their national food security authority. The mandate involved sourcing refined sugar to meet a sudden shortfall caused by regional droughts and delayed supply lines from traditional sources.
The buyer had experienced multiple failed attempts to secure supply — including SCOs from unknown brokers, poorly structured contracts, and sellers unable to deliver within port documentation requirements. There was a growing sense of urgency on their side, but also heightened sensitivity due to previous disappointments.
Auctora’s Role
Working from our London base, Auctora was appointed to lead the full sourcing, structuring, and execution support of the transaction. Our services included:
Buyer Vetting & Mandate Confirmation
We confirmed the authority and credentials of the East African buyer, reviewing their government-issued allocation agreement, tender notice, and funding structure. This gave us a clear understanding of their timeline, expectations, and internal approval process.
Global Supplier Identification
We sourced a Brazil-based sugar group with verified export history and existing ICUMSA 45 allocation. Auctora reviewed their past performance documentation, SGS history, and contract terms to ensure alignment with the buyer’s timeline and compliance criteria.
Deal Structuring & SPA Coordination
Given the spot nature of the request, the timeline was tight. Auctora coordinated:
- SPA drafting and delivery schedule alignment
- Confirmation of CIF port procedures, demurrage terms, and discharge window
- Alignment of payment terms through an irrevocable, confirmed LC via a top-tier international bank
We ensured the buyer understood every clause before signing, walking them through risk points, force majeure language, and inspection rights.
Logistics and Documentation Flow Oversight
Auctora managed communications between buyer, seller, SGS agents, and shipping agents, ensuring:
- Accurate issuance of certificate of origin and inspection certificates
- Export and import permit coordination
- Smooth handling of charter party agreements and shipping notices
Challenges Overcome
Fragmented Market Access
The buyer’s local network had no direct route to verified producers. Auctora’s introduction cut through five layers of broker noise and connected them directly to a performance-proven seller.
Tight Delivery Window
The buyer had a 30-day window to clear port and offload to government warehouse hubs. We supported real-time updates from vessel dispatch through to port-side clearance documentation to ensure nothing stalled at customs.
Instrument Negotiation
There were initial concerns over banking speed and LC conditions. Auctora worked with both parties’ finance teams and international banks to tailor a payment structure that satisfied risk requirements on both sides.
Outcome & Impact
The deal was successfully closed within the 90-day target window. The sugar was delivered CIF to Mombasa, cleared customs without delay, and was fully discharged under SGS supervision. The buyer fulfilled their domestic contract obligations, secured re-approval for future volumes, and returned to Auctora in Q4 2024 for support on a second agri-commodity procurement process.
"We were under pressure, and Auctora delivered what others only promised. Their knowledge of documentation, shipping timelines, and negotiation flow made all the difference. The result was a clean, transparent transaction, and we’re proud to continue working with them."
