Commodity Trading Today: The Landscape

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"Freight and finance technology have changed dramatically since the Babylonians ventured to Meluhha (India), the Phoenicians settled in Gadir (Cadiz) and Zheng He launched his treasure fleet in 1405.
However, over the centuries, the fundamental issues facing buyers, sellers, shippers and ship owners remain the same - Will I be able to obtain financing? Will I get paid on time? What is the cost to transport my goods? What is the cost to operate and pay for the ship? How can I minimise my exposure to risk?

On the one hand, the biggest concern of market players is accessing trade finance compounded by the ever present concern of the Seller of being paid in a timely manner [and avoiding default from counterparty risk].
On the other hand, we have the ever present concern of the Shipowner and Shipper about the costs of running their vessels. Given today’s competitive environment, to keep the ship fully loaded at all times, they often have to agree to paying any cost to ship the product in order to operate their vessel.

Lastly, Shipowners worry about their ability to repay the debt incurred for financing the cost of new ships. They have to improve the age of their fleet in order to comply with stringent environmental laws and lower operating costs (25% less versus 10 year or older ships).