Freight & Shipping

What is freight?

In commodity trading, freight is the cost and contractual framework for moving cargo by sea from a load port to a discharge port. It is bought either by chartering a whole vessel — on a voyage, time or contract-of-affreightment basis — or by booking space on scheduled liner services, typically in containers.

The governing documents are the charter party (for chartered tonnage, often on standard forms such as GENCON for dry cargo or ASBATANKVOY and BPVOY for tankers) and the bill of lading, which acts as a receipt, evidence of the contract of carriage and, when negotiable, a document of title financed by banks.

Freight is priced in US$ per metric tonne or as a lump sum for voyage charters, in US$ per day for time charters, and per container (TEU/FEU) for liner cargo, with bunker, port and canal costs allocated by the contract.

Grades & forms

Specifications

Values summarise commonly referenced public standards for orientation only. The specification attached to the executed contract always governs.

Trade terms

Charter types

Voyage charter (port-to-port, freight per MT or lump sum), time charter (vessel hired by the day), and contract of affreightment (fixed volume over a period across multiple liftings).

Incoterms interaction

Under FOB the buyer arranges freight; under CFR/CIF the seller does. Laytime and demurrage provisions in the SPA must mirror the charter party to avoid unrecovered costs.

Insurance

Marine cargo insurance (Institute Cargo Clauses A/B/C) and, for chartered tonnage, confirmation of the owner's P&I club entry and hull & machinery cover.

Documentation

Bills of lading, mate's receipt, NOR, statement of facts, ullage/draft survey reports and cargo manifests.

Sanctions & vetting

Vessel screening against sanctions lists, AIS history and, for tankers, SIRE/OCIMF vetting.

Use cases

Logistics

• Port restrictions (draft, LOA, berth availability) determine the largest vessel class that can serve a lane.
• Panama Canal transit constraints affect Pacific–Caribbean routings and timing.
• Hurricane season (June–November) is factored into laycan and insurance planning.

Related services

• Private Credit & Insurance Wrappers — Private credit combined with credit insurance, guarantees and collateral control to bridge the gap between shipment and payment.
• Feedstock & Offtake Sourcing Agreements — Term supply for processors and committed offtake for producers, with verification and documentation built to bankable standards.

Frequently asked questions

Do you act as a shipbroker?

We arrange freight as part of the trades we structure and work with licensed brokers and owners; we do not hold out as a stand-alone shipbroking firm.

What drives demurrage risk?

Port congestion, slow documentation, terminal restrictions and weather. Clear laytime terms and back-to-back SPA provisions limit the exposure.

Can freight be fixed for a full year?

Yes — a contract of affreightment can lock in rate and capacity across a programme of liftings.

Supplier directory

Lane guides for each freight product by city, US state and FOB port: