Glossary

Commodity

Tags: Glossary

Goods or products that are traded, bought, or sold.

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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.

What is a Commodity?

In shipping, a commodity refers to a raw material, product, or goods that are traded in bulk quantities. Commodities are typically unprocessed or partially processed goods that are traded on commodity exchanges or in physical markets. 

 

Commodities transported by sea include a wide range of products such as crude oil, natural gas, coal, iron ore, grains, chemicals, and other bulk goods. These goods are usually transported in large quantities using specialized vessels designed for specific cargo. 

 

Trade in commodities plays a significant role in the global economy and is a major driver of shipping industry activity. Shipping companies that specialize in the transportation of commodities may offer specialized services such as bulk cargo handling, storage, and logistics solutions to customers. The price of commodities is subject to supply and demand dynamics, and fluctuations in commodity prices can have a significant impact on the shipping industry and global trade. 

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