Commodity Storage and Warehousing

  • Strategic Global Network: Operating a network of secure, strategically located warehouses to optimize storage and distribution.
  • Inventory Management Systems: Implementing advanced inventory systems to track all commodities in real-time.
  • Physical Asset Security: Providing high-level physical security for all warehouses, including surveillance, access control, and armed guards.
  • Specialized Storage: Offering specialized storage solutions, such as climate-controlled environments for sensitive goods.
  • Regulatory Compliance: Ensuring all storage facilities comply with local and international regulations for safety and environmental protection.
  • Warehouse Audits: Conducting regular audits to ensure inventory accuracy and operational integrity.
  • Handling and Loading Efficiency: Using advanced equipment and technology to ensure the efficient loading and unloading of commodities.
  • Inventory Risk Management: Insuring all stored commodities against theft, damage, or natural disaster.
  • Optimized Warehouse Layout: Designing warehouse layouts that maximize storage space and streamline operations.
  • Just-in-Time (JIT) Storage: Managing inventory to reduce storage time and costs by coordinating with transport logistics.
  • Commodity Segregation: Implementing protocols to safely segregate different commodities to prevent cross-contamination.
  • Cost-Effective Solutions: Providing flexible and cost-effective storage solutions based on the client's needs.
  • Emergency Response Plans: Having clear emergency response plans for fire, spills, or other incidents at all storage facilities.

Based on the current geopolitical landscape and recent policy announcements, the US sanctions framework significantly impacts global commodity sales in 2025:

 

  • The US Treasury's Office of Foreign Assets Control (OFAC) has intensified restrictions on Russia's energy sector, specifically targeting major oil producers and the affiliated maritime logistics networks to suppress commodity revenue streams.

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  • Compliance risk for commodity traders remains elevated due to the increased scrutiny of the shadow fleet and the potential for secondary sanctions on international actors facilitating the illicit transport of sanctioned crude oil and petroleum products.

Incoterms 2020 defines the essential responsibilities, costs, and risks for buyers and sellers in the international and domestic delivery of goods, standardizing commercial contract clauses globally. These rules, published by the International Chamber of Commerce (ICC), ensure clarity in critical activities like export clearance, carriage obligations, and the precise point of risk transfer between the two parties. A fundamental change in Incoterms 2020 was the clarification of appropriate levels of insurance coverage for the CIF (Cost, Insurance, and Freight) and CIP (Carriage and Insurance Paid To) rules, mitigating financial exposure for the cargo owner during transit. A significant structural update in Incoterms 2020 was the renaming of DAT (Delivered at Terminal) to DPU (Delivered at Place Unloaded), providing flexibility for the delivery point to be any agreed-upon location, not strictly a terminal.