Tuesday, November 28, 2023
shipping and freight resource services
HomeDifference betweenDifference between Commodity and Cargo

Difference between Commodity and Cargo

Aren’t they the same, you may ask..?? The short answer is NO.. There is a difference between Commodity and Cargo..

Commodity maybe defined as a raw material or product that is traded, such as ores, grain, coffee etc..

Commodity becomes Cargo when it enters the transportation realm.. Cargo is what is transported..

There are several terms associated with Commodity and Cargo..

You may have heard the term “Commodity Trading”, never “Cargo Trading”.. Commodity is what is being bought and sold.. How and when commodity becomes cargo will be decided after the trade..

Trading is done mainly using International Commercial terms otherwise known as Incoterms®..

image for wheat comcargo
Wheat – Commodity and Cargo
Chrome Ore - Commodity and Cargo
Chrome Ore – Commodity and Cargo

You may have also heard the term “Cargo Operation or Handling”, never “Commodity Operation or Handling”.. This is because cargo is what is being transported and handled on board the ships, in port and on the roads.. As long as a “commodity” is being transported, it is referred to as “cargo”..

You may have also heard the terms “Commodity Brokers”, “Commodity Traders”, and “Cargo Brokers”.. Commodity brokers connect sellers and buyers for any specific commodity and Cargo Brokers connect “Commodity Traders” who trade in commodities and Ship owners for the carriage of the commodities..

Something to ponder about.. 🙂

Hariesh Manaadiar
Hariesh Manaadiarhttps://www.shippingandfreightresource.com
I am Hariesh Manaadiar, the Founder of Shipping and Freight Resource.. I have been in the dynamic shipping and freight industry for over three decades and have worked in several sectors.. I share my experiences and knowledge of the industry through this blog for those looking for help in the industry.. Stay subscribed for more free useful content about shipping, freight, maritime, logistics, supply chain and trade..


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Enter your email address to subscribe for free and be notified about new content on this site

Join 37.4K other subscribers


ODeX Digitalisation Survey

Most Popular

Recent Comments