Did you know? More than 80% of international merchandise trade by volume is transported by sea?
In physical commodity trading, the quoted price is only the beginning. The true economic cost of a transaction is shaped by freight, insurance, financing, port congestion, inventory time, currency exposure and the reliability of the delivery route.
A lower-priced cargo travelling through a vulnerable corridor can ultimately cost more than a higher-priced alternative sourced closer to its destination. Even when the vessel arrives, a delay of several weeks may lock up working capital, interrupt production or force the buyer to purchase replacement material at short notice.
This is why sophisticated sourcing decisions are not based on price alone. They are based on the landed, financed and risk-adjusted cost of the transaction.
The most commercially attractive origin is not always the nearest one—and the lowest quotation is not always the most profitable one. The real advantage lies in understanding how geography, time, liquidity and operational risk interact before the contract is signed.
At Ferex Group, market intelligence is translated into transaction intelligence: identifying not simply where a product is available, but where it can be sourced, financed and delivered with the strongest overall commercial outcome.
Insight source: UN Trade and Development — Review of Maritime Transport.
