What is the "Profit Share Mechanism"?

PSM applies when buyer sells the cargo to seller's consent elsewhere they agreed in agreement and in this case buyer should divide the benefit by seller if any, with the ratio already reached to agreed with seller. However in most situation if buyer suffer any lost, it should compensate seller respect to agreed price in agreement. Recently European Union declared his intention to delete PSM from all agreements destined to Europe countries and are based on FOB.