{"id":134,"date":"2026-08-11T22:35:22","date_gmt":"2026-08-11T22:35:22","guid":{"rendered":"https:\/\/www.yanis-group.com\/?p=134"},"modified":"2026-08-13T23:15:13","modified_gmt":"2026-08-13T23:15:13","slug":"how-to-calculate-the-real-cost","status":"publish","type":"post","link":"https:\/\/www.yanis-group.com\/index.php\/2026\/08\/11\/how-to-calculate-the-real-cost\/","title":{"rendered":"How to Calculate the Real Cost"},"content":{"rendered":"\n\n<!-- =========================================================\n     YANIS GROUP \u2014 ARTICLE 3\n     HOW TO CALCULATE THE REAL COST OF A COMMODITY SHIPMENT\n     Target: Commodity Traders, Exporters & Brokers\n     ========================================================= -->\n\n<style>\n\n.yg-cost {\n    --dark:#101820;\n    --dark2:#18232d;\n    --gold:#c7a45b;\n    --gold-light:#ead9ad;\n    --white:#ffffff;\n    --light:#f5f7f8;\n    --grey:#68757e;\n    --border:#e1e6e9;\n    --green:#23845b;\n    --red:#c65353;\n    --blue:#326b91;\n    --orange:#c58a32;\n\n    font-family:Arial,Helvetica,sans-serif;\n    color:var(--dark);\n    line-height:1.6;\n    max-width:1400px;\n    margin:0 auto;\n}\n\n.yg-cost * {\n    box-sizing:border-box;\n}\n\n\/* HERO *\/\n\n.yg-cost-hero {\n    background:linear-gradient(135deg,#101820 0%,#18232d 65%,#293842 100%);\n    color:#fff;\n    padding:60px 55px;\n    border-radius:18px;\n    margin-bottom:35px;\n    position:relative;\n    overflow:hidden;\n}\n\n.yg-cost-hero:after {\n    content:\"COST\";\n    position:absolute;\n    right:-20px;\n    bottom:-60px;\n    font-size:160px;\n    font-weight:900;\n    color:rgba(199,164,91,.05);\n}\n\n.yg-label {\n    color:var(--gold);\n    font-size:13px;\n    font-weight:800;\n    letter-spacing:2px;\n    text-transform:uppercase;\n    margin-bottom:12px;\n}\n\n.yg-cost-hero h1 {\n    color:#fff;\n    font-size:clamp(35px,5vw,60px);\n    line-height:1.08;\n    max-width:1000px;\n    margin:0 0 20px;\n}\n\n.yg-cost-hero p {\n    color:#d6dfe3;\n    font-size:19px;\n    max-width:920px;\n    margin:0;\n}\n\n\/* INTRO *\/\n\n.yg-cost-intro {\n    background:var(--light);\n    border-left:5px solid var(--gold);\n    padding:27px 30px;\n    border-radius:10px;\n    margin-bottom:45px;\n}\n\n\/* TITLES *\/\n\n.yg-cost h2.section-title {\n    font-size:32px;\n    margin:45px 0 12px;\n}\n\n.yg-cost .section-subtitle {\n    color:var(--grey);\n    margin-bottom:25px;\n}\n\n\/* PRICE JOURNEY *\/\n\n.yg-cost-flow {\n    display:flex;\n    align-items:stretch;\n    overflow-x:auto;\n    margin:30px 0 45px;\n    padding-bottom:12px;\n}\n\n.yg-cost-step {\n    min-width:190px;\n    background:var(--dark);\n    color:#fff;\n    padding:24px 20px;\n    position:relative;\n}\n\n.yg-cost-step:nth-child(even) {\n    background:var(--dark2);\n}\n\n.yg-cost-step:not(:last-child):after {\n    content:\"\u2192\";\n    position:absolute;\n    right:-20px;\n    top:50%;\n    transform:translateY(-50%);\n    color:var(--gold);\n    font-size:25px;\n    z-index:2;\n}\n\n.yg-cost-step small {\n    color:var(--gold);\n    font-weight:800;\n}\n\n.yg-cost-step strong {\n    display:block;\n    margin:7px 0;\n}\n\n.yg-cost-step span {\n    color:#c8d1d6;\n    font-size:12px;\n}\n\n\/* FORMULA *\/\n\n.yg-formula {\n    background:var(--dark);\n    color:#fff;\n    padding:35px;\n    border-radius:15px;\n    margin:35px 0;\n    text-align:center;\n}\n\n.yg-formula .formula-main {\n    color:var(--gold);\n    font-size:clamp(19px,3vw,30px);\n    font-weight:800;\n    line-height:1.5;\n}\n\n.yg-formula p {\n    color:#cbd4d9;\n    font-size:13px;\n}\n\n\/* COST CARDS *\/\n\n.yg-cost-grid {\n    display:grid;\n    grid-template-columns:repeat(3,1fr);\n    gap:18px;\n    margin:30px 0;\n}\n\n.yg-cost-card {\n    background:#fff;\n    border:1px solid var(--border);\n    border-radius:13px;\n    padding:25px;\n    position:relative;\n    overflow:hidden;\n}\n\n.yg-cost-card:before {\n    content:\"\";\n    position:absolute;\n    top:0;\n    left:0;\n    width:100%;\n    height:4px;\n    background:var(--gold);\n}\n\n.yg-cost-card .icon {\n    font-size:29px;\n}\n\n.yg-cost-card h3 {\n    margin:8px 0;\n}\n\n.yg-cost-card p {\n    color:#59666f;\n    font-size:14px;\n}\n\n\/* TABLE *\/\n\n.yg-cost-table-wrapper {\n    overflow-x:auto;\n    border:1px solid var(--border);\n    border-radius:14px;\n    background:#fff;\n    box-shadow:0 8px 30px rgba(16,24,32,.06);\n}\n\n.yg-cost-table {\n    width:100%;\n    border-collapse:collapse;\n    min-width:1000px;\n}\n\n.yg-cost-table th {\n    background:var(--dark);\n    color:#fff;\n    padding:17px 14px;\n    text-align:left;\n    font-size:12px;\n    text-transform:uppercase;\n    letter-spacing:.6px;\n}\n\n.yg-cost-table th:first-child {\n    color:var(--gold);\n}\n\n.yg-cost-table td {\n    padding:15px 14px;\n    border-bottom:1px solid var(--border);\n    vertical-align:top;\n    font-size:14px;\n}\n\n.yg-cost-table tr:last-child td {\n    border-bottom:none;\n}\n\n.yg-cost-table tr:hover td {\n    background:#fafbfb;\n}\n\n\/* BADGE *\/\n\n.yg-badge {\n    display:inline-block;\n    padding:5px 10px;\n    border-radius:20px;\n    font-size:11px;\n    font-weight:800;\n}\n\n.yg-badge.core {\n    background:#f8edd7;\n    color:#87631b;\n}\n\n.yg-badge.variable {\n    background:#e8f1f7;\n    color:var(--blue);\n}\n\n.yg-badge.risk {\n    background:#fbeaea;\n    color:var(--red);\n}\n\n\/* CALCULATION *\/\n\n.yg-calc {\n    display:grid;\n    grid-template-columns:1fr 1fr;\n    gap:25px;\n    margin:30px 0 45px;\n}\n\n.yg-calc-box {\n    background:#fff;\n    border:1px solid var(--border);\n    border-radius:14px;\n    padding:28px;\n}\n\n.yg-calc-box.dark {\n    background:var(--dark);\n    color:#fff;\n    border:none;\n}\n\n.yg-calc-box h3 {\n    margin-top:0;\n}\n\n.yg-calc-box.dark h3 {\n    color:#fff;\n}\n\n.yg-calc-line {\n    display:flex;\n    justify-content:space-between;\n    gap:15px;\n    padding:10px 0;\n    border-bottom:1px solid var(--border);\n}\n\n.yg-calc-box.dark .yg-calc-line {\n    border-color:#34424d;\n}\n\n.yg-calc-line:last-child {\n    border-bottom:none;\n}\n\n.yg-calc-total {\n    margin-top:15px;\n    padding-top:18px;\n    border-top:2px solid var(--gold);\n    display:flex;\n    justify-content:space-between;\n    font-size:20px;\n    font-weight:800;\n}\n\n.yg-calc-total strong:last-child {\n    color:var(--gold);\n}\n\n\/* GOLD *\/\n\n.yg-cost-gold {\n    background:linear-gradient(135deg,#f7f4ed,#fff);\n    border:1px solid #e6dcc4;\n    border-radius:15px;\n    padding:35px;\n    margin:45px 0;\n}\n\n.yg-cost-gold h2 {\n    margin-top:0;\n}\n\n\/* INCOTERMS *\/\n\n.yg-incoterm-grid {\n    display:grid;\n    grid-template-columns:repeat(4,1fr);\n    gap:15px;\n    margin:25px 0;\n}\n\n.yg-incoterm {\n    border:1px solid var(--border);\n    border-radius:11px;\n    padding:20px;\n    background:#fff;\n}\n\n.yg-incoterm strong {\n    color:var(--gold);\n    display:block;\n    font-size:20px;\n    margin-bottom:7px;\n}\n\n\/* WARNING *\/\n\n.yg-warning {\n    background:#fff8e8;\n    border:1px solid #ead9ad;\n    border-radius:12px;\n    padding:25px;\n    margin:35px 0;\n}\n\n.yg-warning strong {\n    color:#87651e;\n}\n\n\/* FINAL *\/\n\n.yg-cost-final {\n    background:var(--dark);\n    color:#fff;\n    border-radius:16px;\n    padding:38px;\n    margin:45px 0;\n}\n\n.yg-cost-final h2 {\n    color:#fff;\n    margin-top:0;\n}\n\n.yg-cost-final p {\n    color:#cbd4d9;\n}\n\n.yg-cost-final .quote {\n    border-left:4px solid var(--gold);\n    padding-left:20px;\n    color:#fff;\n    font-size:22px;\n    margin:25px 0;\n}\n\n\/* FOOTER *\/\n\n.yg-cost-footer {\n    background:var(--dark);\n    color:#fff;\n    border-radius:15px;\n    padding:35px;\n    margin-top:50px;\n}\n\n.yg-cost-footer p {\n    color:#cbd4d9;\n}\n\n@media(max-width:1000px) {\n\n    .yg-cost-grid {\n        grid-template-columns:repeat(2,1fr);\n    }\n\n    .yg-incoterm-grid {\n        grid-template-columns:repeat(2,1fr);\n    }\n\n    .yg-calc {\n        grid-template-columns:1fr;\n    }\n\n}\n\n@media(max-width:700px) {\n\n    .yg-cost-grid,\n    .yg-incoterm-grid {\n        grid-template-columns:1fr;\n    }\n\n    .yg-cost-hero {\n        padding:42px 25px;\n    }\n\n    .yg-cost h2.section-title {\n        font-size:27px;\n    }\n\n}\n\n<\/style>\n\n\n<div class=\"yg-cost\">\n\n\n    <!-- =====================================================\n         HERO\n         ===================================================== -->\n\n    <section class=\"yg-cost-hero\">\n\n        <div class=\"yg-label\">\n            YANIS GROUP \u00b7 Commodity Trading Academy\n        <\/div>\n\n        <h1>\n            How to Calculate the Real Cost of a Commodity Shipment\n        <\/h1>\n\n        <p>\n            From supplier price to delivered cost:\n            understand the complete cost structure behind an\n            international commodity transaction.\n        <\/p>\n\n    <\/section>\n\n\n    <!-- INTRO -->\n\n    <div class=\"yg-cost-intro\">\n\n        <strong>\n            The cheapest supplier price is not necessarily the cheapest deal.\n        <\/strong>\n\n        <br><br>\n\n        In physical commodity trading, a trader must look beyond the\n        quoted commodity price.\n\n        <br><br>\n\n        Freight, insurance, inspection, port charges, financing,\n        documentation, commissions, storage and other operational costs\n        can materially change the final economics of a transaction.\n\n        <br><br>\n\n        The objective is therefore to calculate the\n        <strong>real commercial cost<\/strong>\n        before deciding whether the transaction is profitable.\n\n    <\/div>\n\n\n    <!-- PRICE JOURNEY -->\n\n    <h2 class=\"section-title\">\n        From Supplier Price to Real Cost\n    <\/h2>\n\n    <p class=\"section-subtitle\">\n        A commodity transaction should be analyzed as a complete cost chain.\n    <\/p>\n\n    <div class=\"yg-cost-flow\">\n\n        <div class=\"yg-cost-step\">\n            <small>01<\/small>\n            <strong>SUPPLIER PRICE<\/strong>\n            <span>Base commodity price<\/span>\n        <\/div>\n\n        <div class=\"yg-cost-step\">\n            <small>02<\/small>\n            <strong>ORIGIN COSTS<\/strong>\n            <span>Handling, inland transport, terminal<\/span>\n        <\/div>\n\n        <div class=\"yg-cost-step\">\n            <small>03<\/small>\n            <strong>FREIGHT<\/strong>\n            <span>International transportation<\/span>\n        <\/div>\n\n        <div class=\"yg-cost-step\">\n            <small>04<\/small>\n            <strong>INSURANCE<\/strong>\n            <span>Where applicable<\/span>\n        <\/div>\n\n        <div class=\"yg-cost-step\">\n            <small>05<\/small>\n            <strong>DESTINATION<\/strong>\n            <span>Port and local costs<\/span>\n        <\/div>\n\n        <div class=\"yg-cost-step\">\n            <small>06<\/small>\n            <strong>FINANCE<\/strong>\n            <span>Funding and banking costs<\/span>\n        <\/div>\n\n        <div class=\"yg-cost-step\">\n            <small>07<\/small>\n            <strong>DELIVERED COST<\/strong>\n            <span>True commercial cost<\/span>\n        <\/div>\n\n    <\/div>\n\n\n    <!-- FORMULA -->\n\n    <section class=\"yg-formula\">\n\n        <div class=\"formula-main\">\n\n            REAL DELIVERED COST\n\n            =\n\n            COMMODITY COST\n\n            +\n\n            LOGISTICS\n\n            +\n\n            FINANCIAL\n\n            +\n\n            OPERATIONAL COSTS\n\n        <\/div>\n\n        <p>\n            The exact components depend on the commodity,\n            Incoterm\u00ae, route, transaction structure and destination.\n        <\/p>\n\n    <\/section>\n\n\n    <!-- COST COMPONENTS -->\n\n    <h2 class=\"section-title\">\n        The Main Cost Components\n    <\/h2>\n\n    <div class=\"yg-cost-grid\">\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83c\udf3e<\/div>\n\n            <h3>\n                Commodity Price\n            <\/h3>\n\n            <p>\n                The agreed price of the physical commodity,\n                normally expressed per metric ton or another agreed unit.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83d\ude9b<\/div>\n\n            <h3>\n                Inland Transportation\n            <\/h3>\n\n            <p>\n                Transportation from farm, factory, warehouse or\n                production site to the loading facility.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83c\udfd7\ufe0f<\/div>\n\n            <h3>\n                Terminal &#038; Handling\n            <\/h3>\n\n            <p>\n                Loading, terminal handling, storage and related\n                origin-side operational costs.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83d\udea2<\/div>\n\n            <h3>\n                Ocean Freight\n            <\/h3>\n\n            <p>\n                Vessel freight can be one of the largest components\n                of the delivered commodity price.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83d\udee1\ufe0f<\/div>\n\n            <h3>\n                Insurance\n            <\/h3>\n\n            <p>\n                Depending on the contractual structure and Incoterm\u00ae,\n                cargo insurance may be included or arranged separately.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\u2693<\/div>\n\n            <h3>\n                Destination Costs\n            <\/h3>\n\n            <p>\n                Discharge, terminal, storage, inland transportation\n                and other destination-side costs.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83d\udd2c<\/div>\n\n            <h3>\n                Inspection\n            <\/h3>\n\n            <p>\n                Independent inspection, sampling, testing and\n                certification costs where applicable.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83c\udfe6<\/div>\n\n            <h3>\n                Financing\n            <\/h3>\n\n            <p>\n                Financing, bank charges, interest and transaction-related\n                financial costs may affect the final margin.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83d\udcd1<\/div>\n\n            <h3>\n                Documentation &#038; Administration\n            <\/h3>\n\n            <p>\n                Certificates, documentation, compliance, administration\n                and other transaction expenses.\n            <\/p>\n\n        <\/div>\n\n    <\/div>\n\n\n    <!-- TABLE -->\n\n    <h2 class=\"section-title\">\n        Cost Structure \u2014 Trader&#8217;s View\n    <\/h2>\n\n    <div class=\"yg-cost-table-wrapper\">\n\n        <table class=\"yg-cost-table\">\n\n            <thead>\n\n                <tr>\n                    <th>Cost Category<\/th>\n                    <th>Typical Examples<\/th>\n                    <th>Usually Depends On<\/th>\n                    <th>Impact<\/th>\n                <\/tr>\n\n            <\/thead>\n\n            <tbody>\n\n                <tr>\n\n                    <td>\n                        <strong>Commodity<\/strong>\n                    <\/td>\n\n                    <td>\n                        Supplier price \/ purchase price\n                    <\/td>\n\n                    <td>\n                        Market, origin, quality, volume\n                    <\/td>\n\n                    <td>\n                        <span class=\"yg-badge core\">\n                            CORE\n                        <\/span>\n                    <\/td>\n\n                <\/tr>\n\n\n                <tr>\n\n                    <td>\n                        <strong>Origin Logistics<\/strong>\n                    <\/td>\n\n                    <td>\n                        Inland freight, terminal, loading\n                    <\/td>\n\n                    <td>\n                        Origin and facility\n                    <\/td>\n\n                    <td>\n                        <span class=\"yg-badge variable\">\n                            VARIABLE\n                        <\/span>\n                    <\/td>\n\n                <\/tr>\n\n\n                <tr>\n\n                    <td>\n                        <strong>Ocean Freight<\/strong>\n                    <\/td>\n\n                    <td>\n                        Vessel transportation\n                    <\/td>\n\n                    <td>\n                        Route, vessel, season, cargo\n                    <\/td>\n\n                    <td>\n                        <span class=\"yg-badge core\">\n                            CORE\n                        <\/span>\n                    <\/td>\n\n                <\/tr>\n\n\n                <tr>\n\n                    <td>\n                        <strong>Insurance<\/strong>\n                    <\/td>\n\n                    <td>\n                        Cargo insurance\n                    <\/td>\n\n                    <td>\n                        Cargo value and coverage\n                    <\/td>\n\n                    <td>\n                        <span class=\"yg-badge variable\">\n                            VARIABLE\n                        <\/span>\n                    <\/td>\n\n                <\/tr>\n\n\n                <tr>\n\n                    <td>\n                        <strong>Inspection<\/strong>\n                    <\/td>\n\n                    <td>\n                        Sampling, testing, certification\n                    <\/td>\n\n                    <td>\n                        Commodity and contractual requirements\n                    <\/td>\n\n                    <td>\n                        <span class=\"yg-badge variable\">\n                            VARIABLE\n                        <\/span>\n                    <\/td>\n\n                <\/tr>\n\n\n                <tr>\n\n                    <td>\n                        <strong>Destination<\/strong>\n                    <\/td>\n\n                    <td>\n                        Discharge, storage, local transport\n                    <\/td>\n\n                    <td>\n                        Port, destination and Incoterm\u00ae\n                    <\/td>\n\n                    <td>\n                        <span class=\"yg-badge core\">\n                            CORE\n                        <\/span>\n                    <\/td>\n\n                <\/tr>\n\n\n                <tr>\n\n                    <td>\n                        <strong>Finance<\/strong>\n                    <\/td>\n\n                    <td>\n                        Bank charges, funding, interest\n                    <\/td>\n\n                    <td>\n                        Payment terms and funding period\n                    <\/td>\n\n                    <td>\n                        <span class=\"yg-badge risk\">\n                            RISK\n                        <\/span>\n                    <\/td>\n\n                <\/tr>\n\n\n                <tr>\n\n                    <td>\n                        <strong>Administration<\/strong>\n                    <\/td>\n\n                    <td>\n                        Documentation, compliance, transaction expenses\n                    <\/td>\n\n                    <td>\n                        Structure and jurisdiction\n                    <\/td>\n\n                    <td>\n                        <span class=\"yg-badge variable\">\n                            VARIABLE\n                        <\/span>\n                    <\/td>\n\n                <\/tr>\n\n            <\/tbody>\n\n        <\/table>\n\n    <\/div>\n\n\n    <!-- EXAMPLE -->\n\n    <h2 class=\"section-title\">\n        Worked Example \u2014 Commodity Shipment\n    <\/h2>\n\n    <p class=\"section-subtitle\">\n        Illustrative example only. Actual costs must be obtained from\n        the relevant suppliers, carriers, terminals and service providers.\n    <\/p>\n\n\n    <div class=\"yg-calc\">\n\n        <div class=\"yg-calc-box\">\n\n            <h3>\n                \ud83d\udce6 Purchase Side\n            <\/h3>\n\n            <div class=\"yg-calc-line\">\n                <span>Commodity<\/span>\n                <strong>$420 \/ MT<\/strong>\n            <\/div>\n\n            <div class=\"yg-calc-line\">\n                <span>Origin handling<\/span>\n                <strong>$8 \/ MT<\/strong>\n            <\/div>\n\n            <div class=\"yg-calc-line\">\n                <span>Inland transport<\/span>\n                <strong>$12 \/ MT<\/strong>\n            <\/div>\n\n            <div class=\"yg-calc-line\">\n                <span>Inspection<\/span>\n                <strong>$2 \/ MT<\/strong>\n            <\/div>\n\n            <div class=\"yg-calc-total\">\n                <strong>Origin Cost<\/strong>\n                <strong>$442 \/ MT<\/strong>\n            <\/div>\n\n        <\/div>\n\n\n        <div class=\"yg-calc-box dark\">\n\n            <h3>\n                \ud83d\udea2 Delivery Side\n            <\/h3>\n\n            <div class=\"yg-calc-line\">\n                <span>Ocean freight<\/span>\n                <strong>$38 \/ MT<\/strong>\n            <\/div>\n\n            <div class=\"yg-calc-line\">\n                <span>Insurance<\/span>\n                <strong>$2 \/ MT<\/strong>\n            <\/div>\n\n            <div class=\"yg-calc-line\">\n                <span>Destination charges<\/span>\n                <strong>$14 \/ MT<\/strong>\n            <\/div>\n\n            <div class=\"yg-calc-line\">\n                <span>Finance &#038; administration<\/span>\n                <strong>$4 \/ MT<\/strong>\n            <\/div>\n\n            <div class=\"yg-calc-total\">\n                <strong>Delivered Cost<\/strong>\n                <strong>$500 \/ MT<\/strong>\n            <\/div>\n\n        <\/div>\n\n    <\/div>\n\n\n    <!-- MARGIN -->\n\n    <section class=\"yg-cost-gold\">\n\n        <h2>\n            Then Calculate the Trading Margin\n        <\/h2>\n\n        <p>\n            Once the real delivered cost is known, the trader can\n            compare it with the expected selling price.\n        <\/p>\n\n        <div class=\"yg-formula\">\n\n            <div class=\"formula-main\">\n\n                SELLING PRICE\n\n                \u2212\n\n                REAL COST\n\n                =\n\n                GROSS TRADING MARGIN\n\n            <\/div>\n\n        <\/div>\n\n        <p>\n            For example, if the expected selling price is\n            <strong>$525 \/ MT<\/strong> and the estimated delivered cost\n            is <strong>$500 \/ MT<\/strong>, the indicative gross trading\n            margin is <strong>$25 \/ MT<\/strong>.\n        <\/p>\n\n        <p>\n            This is not necessarily the final net profit. Additional\n            expenses, taxes, commissions, financing, claims, currency\n            movements and unexpected operational costs may affect the\n            final result.\n        <\/p>\n\n    <\/section>\n\n\n    <!-- INCOTERMS -->\n\n    <h2 class=\"section-title\">\n        Why Incoterms\u00ae Change the Cost Calculation\n    <\/h2>\n\n    <p class=\"section-subtitle\">\n        The same commodity can have different cost structures depending\n        on where the seller&#8217;s responsibility ends and where the buyer&#8217;s\n        responsibility begins.\n    <\/p>\n\n\n    <div class=\"yg-incoterm-grid\">\n\n        <div class=\"yg-incoterm\">\n            <strong>FOB<\/strong>\n            Seller&#8217;s obligations generally cover the cargo up to the\n            agreed loading point on board the vessel. Buyer normally\n            arranges the main ocean freight.\n        <\/div>\n\n        <div class=\"yg-incoterm\">\n            <strong>CFR<\/strong>\n            Seller arranges and pays the main carriage to the named\n            destination port, while insurance is not included by default.\n        <\/div>\n\n        <div class=\"yg-incoterm\">\n            <strong>CIF<\/strong>\n            Seller arranges carriage and insurance to the named\n            destination port, subject to the applicable Incoterms\u00ae rules.\n        <\/div>\n\n        <div class=\"yg-incoterm\">\n            <strong>DAP<\/strong>\n            Seller generally carries the goods to the named destination,\n            while import clearance and import duties are handled by the\n            buyer under the rule.\n        <\/div>\n\n    <\/div>\n\n\n    <div class=\"yg-warning\">\n\n        <strong>\n            \u26a0\ufe0f Important:\n        <\/strong>\n\n        <p>\n            Incoterms\u00ae define specific responsibilities, costs and\n            transfer of risk between seller and buyer. They do not,\n            by themselves, determine ownership, payment terms, price,\n            financing arrangements or all costs of a transaction.\n        <\/p>\n\n        <p>\n            Always identify the exact Incoterms\u00ae rule and named place\n            in the contract.\n        <\/p>\n\n    <\/div>\n\n\n    <!-- HIDDEN COSTS -->\n\n    <h2 class=\"section-title\">\n        The &#8220;Hidden&#8221; Costs Traders Often Forget\n    <\/h2>\n\n    <div class=\"yg-cost-grid\">\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\u23f1\ufe0f<\/div>\n\n            <h3>\n                Demurrage \/ Delay\n            <\/h3>\n\n            <p>\n                Delays at ports or terminals can create substantial\n                additional costs depending on the contractual arrangement.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83c\udfe6<\/div>\n\n            <h3>\n                Financing Time\n            <\/h3>\n\n            <p>\n                A transaction requiring financing for several weeks or\n                months has a different economics from a short settlement.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83d\udcb1<\/div>\n\n            <h3>\n                FX Exposure\n            <\/h3>\n\n            <p>\n                When purchase, freight and sale are denominated in\n                different currencies, exchange-rate movements can affect\n                the margin.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83d\udce6<\/div>\n\n            <h3>\n                Storage\n            <\/h3>\n\n            <p>\n                Cargo remaining at origin or destination may generate\n                storage or handling charges.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83d\udd0d<\/div>\n\n            <h3>\n                Claims &#038; Quality\n            <\/h3>\n\n            <p>\n                Quality disputes, shortages or rejected cargo can\n                materially change the economics of the transaction.\n            <\/p>\n\n        <\/div>\n\n\n        <div class=\"yg-cost-card\">\n\n            <div class=\"icon\">\ud83d\udcc4<\/div>\n\n            <h3>\n                Documentary Costs\n            <\/h3>\n\n            <p>\n                Certificates, legalization, inspection and other\n                documentation can add costs that were not included\n                in the initial quotation.\n            <\/p>\n\n        <\/div>\n\n    <\/div>\n\n\n    <!-- UNIT ECONOMICS -->\n\n    <h2 class=\"section-title\">\n        Think in Cost per Metric Ton\n    <\/h2>\n\n    <div class=\"yg-cost-gold\">\n\n        <h2>\n            Unit Economics = The Trader&#8217;s Core Calculation\n        <\/h2>\n\n        <p>\n            Commodity contracts can involve thousands or hundreds of\n            thousands of metric tons. A difference of only a few dollars\n            per metric ton can therefore have a significant impact.\n        <\/p>\n\n        <div class=\"yg-formula\">\n\n            <div class=\"formula-main\">\n\n                TOTAL TRANSACTION COST\n\n                \u00f7\n\n                TOTAL DELIVERABLE QUANTITY\n\n                =\n\n                COST PER MT\n\n            <\/div>\n\n        <\/div>\n\n        <p>\n            Always distinguish between the contractual quantity,\n            estimated quantity, loaded quantity, shipped quantity and\n            final payable quantity where the contract provides for such\n            adjustments.\n        <\/p>\n\n    <\/div>\n\n\n    <!-- TRADER CHECKLIST -->\n\n    <h2 class=\"section-title\">\n        Commodity Cost Calculation Checklist\n    <\/h2>\n\n    <div class=\"yg-cost-table-wrapper\">\n\n        <table class=\"yg-cost-table\">\n\n            <thead>\n\n                <tr>\n                    <th>Question<\/th>\n                    <th>Why It Matters<\/th>\n                    <th>Status<\/th>\n                <\/tr>\n\n            <\/thead>\n\n            <tbody>\n\n                <tr>\n                    <td>What is the exact purchase price?<\/td>\n                    <td>Defines the starting point of the calculation.<\/td>\n                    <td>\u2713 Required<\/td>\n                <\/tr>\n\n                <tr>\n                    <td>What is the Incoterms\u00ae rule?<\/td>\n                    <td>Determines allocation of specific costs and risks.<\/td>\n                    <td>\u2713 Required<\/td>\n                <\/tr>\n\n                <tr>\n                    <td>What is the named place \/ port?<\/td>\n                    <td>Cost responsibility depends on the agreed location.<\/td>\n                    <td>\u2713 Required<\/td>\n                <\/tr>\n\n                <tr>\n                    <td>What is the freight cost?<\/td>\n                    <td>Can materially change the delivered price.<\/td>\n                    <td>\u2713 Required<\/td>\n                <\/tr>\n\n                <tr>\n                    <td>Are insurance costs included?<\/td>\n                    <td>Depends on the commercial structure.<\/td>\n                    <td>\u2713 Check<\/td>\n                <\/tr>\n\n                <tr>\n                    <td>What are origin charges?<\/td>\n                    <td>Prevents underestimating FOB \/ origin cost.<\/td>\n                    <td>\u2713 Check<\/td>\n                <\/tr>\n\n                <tr>\n                    <td>What are destination charges?<\/td>\n                    <td>Prevents underestimating landed cost.<\/td>\n                    <td>\u2713 Check<\/td>\n                <\/tr>\n\n                <tr>\n                    <td>What are inspection costs?<\/td>\n                    <td>Quality verification can create additional expenses.<\/td>\n                    <td>\u2713 Check<\/td>\n                <\/tr>\n\n                <tr>\n                    <td>What is the financing period?<\/td>\n                    <td>Time has a financial cost.<\/td>\n                    <td>\u2713 Check<\/td>\n                <\/tr>\n\n                <tr>\n                    <td>What is the expected selling price?<\/td>\n                    <td>Required to calculate the commercial margin.<\/td>\n                    <td>\u2713 Required<\/td>\n                <\/tr>\n\n            <\/tbody>\n\n        <\/table>\n\n    <\/div>\n\n\n    <!-- FINAL -->\n\n    <section class=\"yg-cost-final\">\n\n        <h2>\n            The YANIS GROUP Principle\n        <\/h2>\n\n        <div class=\"quote\">\n            &#8220;Never calculate your margin from the purchase price alone.\n            Calculate it from the real cost of execution.&#8221;\n        <\/div>\n\n        <p>\n            In international commodity trading, a transaction should\n            be evaluated as a complete economic chain rather than a\n            simple purchase price versus selling price.\n        <\/p>\n\n        <p>\n            The trader who understands every major cost component has\n            a much clearer view of the true margin, the risks and the\n            commercial viability of the transaction.\n        <\/p>\n\n        <p>\n            Before quoting a buyer, negotiating a supplier or confirming\n            a shipment, calculate the complete cost structure.\n        <\/p>\n\n    <\/section>\n\n\n    <!-- FOOTER -->\n\n    <section class=\"yg-cost-footer\">\n\n        <div class=\"yg-label\">\n            YANIS GROUP\n        <\/div>\n\n        <h2>\n            International Commodity Trading\n        <\/h2>\n\n        <p>\n            YANIS GROUP operates as an international commodity exporter,\n            trader and broker, connecting suppliers and buyers across\n            physical commodity markets.\n        <\/p>\n\n        <p>\n            <strong>\n                Know the price. Calculate the cost. Protect the margin.\n            <\/strong>\n        <\/p>\n\n        <p style=\"font-size:12px;margin-top:25px;\">\n            This article is provided for general educational purposes only.\n            Cost examples are illustrative and do not represent quotations.\n            Actual transaction costs depend on the commodity, route,\n            Incoterms\u00ae rule, counterparties, logistics providers,\n            financing arrangements, taxes and applicable regulations.\n        <\/p>\n\n    <\/section>\n\n<\/div>\n&#8220;`\n\n","protected":false},"excerpt":{"rendered":"<p>YANIS GROUP \u00b7 Commodity Trading Academy How to Calculate the Real Cost of a Commodity Shipment From supplier price to delivered cost: understand the complete cost structure behind an international commodity transaction. The cheapest supplier price is not necessarily the cheapest deal. In physical commodity trading, a trader must look beyond the quoted commodity price.&hellip;&nbsp;<\/p>\n","protected":false},"author":1,"featured_media":163,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.yanis-group.com\/index.php\/wp-json\/wp\/v2\/posts\/134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.yanis-group.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.yanis-group.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.yanis-group.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.yanis-group.com\/index.php\/wp-json\/wp\/v2\/comments?post=134"}],"version-history":[{"count":1,"href":"https:\/\/www.yanis-group.com\/index.php\/wp-json\/wp\/v2\/posts\/134\/revisions"}],"predecessor-version":[{"id":135,"href":"https:\/\/www.yanis-group.com\/index.php\/wp-json\/wp\/v2\/posts\/134\/revisions\/135"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.yanis-group.com\/index.php\/wp-json\/wp\/v2\/media\/163"}],"wp:attachment":[{"href":"https:\/\/www.yanis-group.com\/index.php\/wp-json\/wp\/v2\/media?parent=134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.yanis-group.com\/index.php\/wp-json\/wp\/v2\/categories?post=134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.yanis-group.com\/index.php\/wp-json\/wp\/v2\/tags?post=134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}