Basic industrial and specialty chemicals can be shipped internationally in containers, barrels, or sacks. Chemicals that are toxic requires a license for trading.
Be familiar with terminologies used for the chemical trading business. This includes jargon like incoterms, payment terms, the port of loading, and port of discharge. Incoterms include FOB (Freight on Board), CIF (Cost Insurance Freight), and CFR (Cost and Freight). Payment terms include DP (Direct Payment) and TT (Telegraphic Transfer).
Chemical trading has now been overtaken by the Asia-Pacific region which was once dominated by North America and Europe.
Product quality is imperative for chemical trading business so as to have a good ROI (Return on Investment) and long-term partnerships.
Be equipped with effective risk management solutions because the prices of chemical products can fluctuate anytime.
Be sure to find reliable suppliers for chemical trading so as to not put your business at risk. Look for traders or suppliers that are veterans in the industry of chemical trading such as Tradeasia International and learn about their business.
Consider sourcing from multiple producers of chemical products so as to be able to blend the assets and provide different forms of services such as documentation, logistics, and support services for the customers.
Other than focusing on looking for cheap and good quality chemical products, ensure that the flexibility and speed of delivery are not compromised.
Ensure that one has a certain level of knowledge relating to the chemical products that are being traded so as to be able to provide technical support, such as licensing to the customers.
Consider different management structures with expertise in marketing, export document, and negotiation, and trading. This allows the business to cater to large and small customers respectively as they each have a very different sales model.