Trade Extra: What’s Your Intent About ‘Trade Reroute’!


Trade Extra: What's Your intent

As pressure mounts ahead of winter, trade-related entities, shippers, and consignees are believed to be walking round the clock in order to figure out measures to circumvent the looming fears around trade. To resolve this lies in the solution shippers could come up with, since targets seem farfetched, we’re poised to guide even as we ask, how you intend to go about trade reroute.

It should be borne in mind that the categories of shipments are enormous, and could be shipped as loose, consolidated, break bulk, wet, or with the aid of containers. Hence, paving way for diverse trade irrespective of the firm’s area of trade specialization.

Based on these categories, it’s evident, options are broad that cut across dry and wet, with the latter being energy (crude and liquefied natural gas) which is undoubtedly topping the list across major economies. However, the good news is, energy products are relatively cheaper from the world’s third largest oil producer – Russia, and a top producer of natural gas in the energy space. As for the subject products – energy (crude oil and natural gas) from this market, shippers can effortlessly get around these products from the market to India and China where these shipments could be transhipped to the actual market of the final destination.

Apart from energy products, commodities like food and fertilizer coupled with aluminum are also making their contribution and will most likely not be a short-term phenomenon even as crisis around trade continue to gain momentum. However, how do you intend to go about trade reroute that points at volume and financial target which is obviously our interest.

As winter edges close, it will be fair to prioritize this approach ahead of the curve noting that trade during winter could prove difficult for a number of markets. While in a broader dimension, it’s been said that the bloc could face a polar winter due to an energy crisis. Based on this, it implies there is a huge market for energy and food, and I urge you to cash into this global quest because trade has become increasingly inevitable.

In view of the available option, trade orders could be directed to either India via Iran or China, with China feasible for energy trade reroute, however, shipments to India via the North-South Transport Corridor is rather the game-changing route in this sphere of the global supply chain, and this is why its significant to take advantage of this very route while demand for these commodities is yet high.

Let’s say you’re doing this as a consultant or shipper, it’s evident, freight won’t be paid to your firm but to the shipping company contracted for the transportation of such shipment over a specific distance. Then you might ask, how your firm might get paid per shipment initiated by your firm, well the answer is – from your trade quote. However, you can also forward shipments to Russia via this route, should you have shipment orders from the subject market!

Shipping wet cargo or fertilizer coupled with food does not necessarily mean a shipload, since Russia is currently the world’s largest producer and exporter of wheat, while the aforementioned market and Belarus account for 45% of the world’s fertilizer. Hence, one could rightly ask that you take advantage of this promising opportunity to nail an appreciable trade deal across regions and markets, and the issue of financial concern will be a forgotten matter.

Having clarified how one could get around trade reroute and what your firm stands to achieve prior to winter, it seems that you’re already eager to give this your best shot.

  • So tell us, how you intend to go about trade reroute!