Glossary
Commercial Risk
The risk of financial loss associated with conducting business.
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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 does Commercial Risk mean?
Commercial risk in shipping refers to the financial risk that arises from the commercial aspects of a shipping transaction, such as the creditworthiness of the buyer or seller, market conditions, or changes in commodity prices.
In shipping, commercial risk is often associated with the sale and purchase of goods, as well as the financing and insurance of shipping transactions. For example, a buyer may default on a payment, or the market value of the cargo may decrease before it reaches its destination, resulting in a financial loss for the seller. Similarly, shipping companies may face commercial risk when they enter into charter agreements with uncertain market conditions or fluctuating freight rates.
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