The location arbitrage that drives so much of physical trading only works if you can actually move the commodity, and moving it is where most of the cost, the risk, and the jargon live. This lesson is the practical machinery of delivery: the Incoterms that decide who pays and who carries the risk, the bill of lading that acts as the title to a cargo afloat and sets the date many deals price off, the chartering of ships and the laytime and demurrage rules that govern loading and discharge, the bunker and freight costs that are the transport term in every location trade, and the storage and inspection that bracket a voyage. None of this is mathematically hard, but it is the language a physical trader speaks every day, and an interviewer will quickly tell whether you have ever thought about how a cargo really gets from A to B. We build each idea on a plain example, then map it to a tanker, and we work a demurrage calculation by hand.
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