Geopolitical disruptions to commodity markets continue to occur at great pace, so whilst this article is correct at the time of writing, we don’t expect it to stay that way for very long at all…
Leaving aside the market disruptions, and other geopolitical risks we covered recently, can integrating your supply chain into your Commodity Management or CTRM system help commodity traders manage logistics and navigate the ongoing tariff challenge?
Changing legislation is creating a headache for merchants
Tariffs are changing again. Some US sectoral tariffs are still not confirmed, particularly across metals, and several that are still require extra guidance, careful clarification, or further negotiation. While US copper tariffs do apply to finished and semi-finished products they exclude inputs including ores and concentrates. Many metals face tariffs of 50%, although negotiations and implementations of tariff-free quotas are still in progress – so could see yet further disruption.
Some geographies are still in negotiations regarding tariffs, the US is currently putting pressure on the EU to increase tariffs on China and India, as well as threatening further tariffs on any countries operating a digital services tax. And on top of this, there is an ongoing legal challenge before the US supreme court that could see the unwinding of all recent tariffs.
Another major area that is vulnerable to this change is in transshipments, with products rerouted from China subject to an additional 40% US tariff. But there has so far been no updated guidance over what constitutes this transshipment and even experts have conflicting advice over how to comply. Current rules in the affected Southeast Asian countries would mean the effect is limited to illegal activities such as using forged export documents. But according to Reuters, trade consultants are advising clients to have at least 40% local content in their exports to the US “to be on the safe side”. If new guidance comes in, this could add yet another hurdle for commodity traders.
And tariffs are not the only geopolitical minefield right now. EU sanctions on Russia continue to evolve, particularly in energy. Since March 2025 they have included a ban on transshipment and temporary storage in EU ports, a ban on imports to some terminals, and other sanctions, with the aim of completely ending Russian fossil fuel imports by 2027.
These issues create a supply chain visibility challenge
To respond to these changes rapidly and with clarity, traders and operators now require a deeper understanding of their stock, positions, origins, and logistics than ever before. This isn’t just about having access to data—it’s about having it in a live, easily accessible format that enables a rapid response to changing conditions. Ideally, this information should be in the same system where they actively manage their logistics, to allow teams to take immediate action when disruptions occur and identify and potentially manage all risks and exposures.
The good news is that this data actually already exists within your supply chain and, in most cases, within your organisation too – it just needs to be effectively managed. And integrating it into a single management system can be more straightforward than expected. A robust and agile Commodity Management System like Gen10’s CommOS can pull in data from various supply chain partners, regardless of format, and consolidate it into one centralised platform. This includes information from warehouse documents, inspection companies, laboratories, purchase and sale contracts, and vessel tracking systems, among other tools. And in a good system you will be able to connect these tools using APIs that can share information in real-time as things change, as well as being able to import from files including spreadsheets and PDFs so that you really do have access to all your supply chain data.
By integrating supply chain management into your CTRM, creating a complete Commodity Management system, you unify trading and logistics data, enabling agile operations, better data-driven decision-making, a potential reduction in risks, and a significant reduction in the administrative burden.
Allocations and shipping strategies
Your team can create strategic and profitable allocations, with a clear view of which stock meets the legal requirements and is least affected by tariffs for each contract. But a system like CommOS allows them to go further, using the inventory management tools to create strategies based on locations, the most efficient use of transportation, first-in, first-out warehousing, and many other options. And because these allocations are created within CommOS, where traders are creating their contracts, these decisions can be made while considering all open positions, not just inventories.
CommOS also creates any shipping documents, and includes checks such as ensuring the allocated quality data is within tolerance, as well as logistics controls to ensure all mandatory documents are included in the shipping process. CommOS also includes logistics controls that help you actively manage shipments, from automatically checking OFAC sanctions lists to workflows that ensure customs duties have been paid. This reduces administration and errors, freeing up logistics professionals to operate more strategically so that they can add real value from their activities.
Ensuring optionality
When the tariff situation can change at short notice, optionality in logistics is more important than ever. It’s vital that your team have visibility over all their options, but having a system that makes it easier to make changes to these logistics is also essential. Incorporating your supply chain into your CTRM means you have this optionality as standard, as pricing can be recalculated as your logistics change.
For example, within CommOS you can create pricing optionality based on the delivery port, incoterms, and more as part of the contract, and the Pricing Engine will recalculate any invoices once these are selected. And because CommOS is set up to recalculate pricing throughout the supply chain, you can update the taxes and duties on your invoices in a matter of clicks if things change.
Complete traceability
The full traceability that arises from managing your entire supply chain in one place makes it easier to comply with legislative changes, as anyone who needs to can see exactly where stock originated, what duties have been paid, any relevant certifications, and its current location. And with integrations to vessel tracking software, this traceability extends to knowing where your containers are even when they’re at sea. Seeing these vessel ETAs as part of your daily operations can be very helpful when tariffs change at short notice – your team can see which vessels will be affected and make contingency plans straight away.
Integrating your supply chain also means incorporating the processes that happen alongside and after logistics processes. For example, advancing lots onto a different credit line when they reach certain shipment points, sending invoices, ensuring payment and creating risk reports. All these tasks can be automated as they all rely on the information that exists within the one connected ecosystem, so the operators don’t need to spend time creating reports on their actions or updating other systems. They can really focus on moving stock in the most efficient and profitable way – and in the current environment, that focus is critical.
Conclusion
In a trading landscape defined by geopolitical uncertainty, integrating your supply chain into your CTRM is a strategic imperative. With tariffs, sanctions, and transshipment rules evolving rapidly, commodity traders need agile systems that offer real-time visibility, flexibility, and control. Integrating your supply chain into a powerful Commodity Management system like Gen10’s CommOS empowers teams to optimise operations, identify and mitigate risks, respond to disruption, and maintain compliance with confidence.
By integrating your supply chain, unifying logistics and trading data, automating critical workflows, and enabling full traceability, CommOS transforms complexity into clarity. It equips your business to not only withstand disruption but to thrive in it—making smarter decisions, faster.
