How to read a trade's P&L

Every physical trade is, underneath, a simple sum: what you sell it for, minus what you paid, minus every cost in between. The skill is knowing all the costs — because the ones beginners forget are exactly the ones that turn a 'profit' into a loss.

The full cost stack

1. 1Purchase cost — the FOB or EXW price you pay the supplier.
2. 2Inland & loading — trucking/rail to port, handling, storage at origin.
3. 3Freight — the ocean voyage (or container freight).
4. 4Insurance — marine cargo cover for the voyage.
5. 5Financing cost — interest on the money tied up from payment to receipt.
6. 6Inspection & certification — surveyors, assays, certificates.
7. 7Losses & weight differences — moisture, handling loss, draft-survey gaps.
8. 8Demurrage — time overruns at load and discharge.
9. 9Duties & taxes — where applicable to your side of the deal.
10. 10Sale proceeds — the CIF/CFR/DAP price your buyer pays.