Commodities

Commodities are at the heart of international trade, connecting producers, traders, financial institutions and consumers across global markets. It is an industry shaped by fluctuating prices, geopolitical developments, changing regulations and increasingly complex supply chains, where commercial opportunities and significant risks often arise simultaneously. Successful trading requires more than an understanding of the goods being bought and sold; it demands careful management of the contractual, financial and operational relationships through which those goods reach their markets.

Our commodities work includes:

• Commodity sale and purchase, supply and offtake agreements

• Physical trading and standard-form contracts, including GAFTA and FOSFA

• Commodity and trade finance, including structured financing arrangements

• Storage, warehousing, processing and distribution matters

• Shipping, transportation and logistics arrangements

• Cargo claims, shortages, contamination and quality disputes

• International arbitration, litigation and trade association disputes

• Insurance, risk allocation and contractual indemnities

• Sanctions, trade restrictions and regulatory compliance

• Contractual defaults, enforcement and recovery

We advise producers, commodity traders, trading houses, buyers, suppliers, financiers and other market participants across a broad range of physical commodities, including agricultural products, grains, food and feed, metals, minerals, energy products and raw materials. Our work brings together commercial contracts, international trade, finance, transportation, insurance and dispute resolution, enabling us to address the interconnected legal issues that characterise commodity transactions.

Our experience encompasses the negotiation, drafting and interpretation of commodity sale and purchase agreements, long-term supply and offtake arrangements, storage, processing and distribution contracts, and other agreements governing the international movement and commercial exploitation of goods. We advise on the contractual frameworks and standard terms commonly used in commodity trading, including GAFTA and FOSFA contracts, with particular attention to their interpretation, application and the rights and obligations they create.

The financing and transportation of commodities are closely connected to the underlying trading arrangements. Our experience in banking and finance, maritime and logistics enables us to consider these relationships together, particularly where financing depends on the underlying goods, or where delays, shortages, contamination or other events during carriage affect contractual performance throughout a trading chain.

Disputes are a significant part of international commodities trading, particularly where market movements, supply disruptions or failures in contractual performance expose parties to substantial financial consequences. We represent clients in disputes involving the interpretation and performance of trading agreements, quality and quantity discrepancies, non-delivery, rejection of goods, pricing and payment obligations, and breaches of sale, supply and transportation contracts. Our work extends to international arbitration, litigation and proceedings under applicable trade association rules, including disputes arising under standard commodity trading contracts.

Commodity transactions frequently involve multiple contracts and counterparties, with obligations extending across different jurisdictions and stages of the supply chain. A failure of performance by one party may create consequences for several others. We assist clients in assessing their contractual exposure, preserving rights, managing claims against counterparties and pursuing recovery, taking account of the commercial relationships and practical circumstances underlying the transaction.

International trade also operates within an increasingly demanding regulatory environment. Sanctions, export and import restrictions, customs requirements, trade controls and geopolitical developments can affect the legality and performance of commercial arrangements, sometimes with little warning. We assist clients in assessing these risks, understanding their contractual consequences and protecting their interests where regulatory changes or external events disrupt existing transactions.

We recognise that commodity markets move quickly and that legal decisions often need to be taken while goods are in transit, prices are changing or contractual deadlines are approaching. Our advice is informed by the commercial realities of physical trading, with particular emphasis on contractual certainty, the preservation of rights and the practical consequences of decisions taken under pressure.

From structuring and financing commodity transactions to managing contractual risk and resolving complex international disputes, we help clients navigate the legal challenges of global trade while protecting the commercial value of their transactions.