Critical Minerals Logistics and Shipping
Facts checked against sources on . How we check facts.
Critical minerals move mostly by sea, in forms that range from bulk ore and concentrate to bagged chemicals and finished magnets, and the logistics risks differ by form. Dry bulk ores such as nickel ore carry a cargo-safety risk called liquefaction, chemicals and metals depend on the trade terms agreed between buyer and seller, and nearly all forms are exposed to export licenses and quotas that can stop a shipment before it leaves the port. UNCTAD warned in 2025 that trade in critical minerals is concentrated in a handful of exporters, which increases exposure to strategic and logistical chokepoints.
5,245 miles
average voyage length in 2024, up from 4,831 miles in 2018 as rerouting lengthened trips
2 conditions
needed for nickel ore to liquefy at sea: cargo moisture above safe limits and the vessel's rolling and pitching
Source: Skuld, 15 August 2023
96,600 t
maximum DRC cobalt exports a year in 2026 and 2027 under the October 2025 quotas
How do different critical mineral cargoes ship, and what can go wrong?
The form of the cargo decides the mode, the contract basis and the risk. The table covers the cases for which the sources used here give specific information.
| Cargo | Typical basis | Main logistics risk | Source |
|---|---|---|---|
| Nickel ore | Dry bulk, loaded in Indonesia and the Philippines | Liquefaction under the International Maritime Solid Bulk Cargoes Code: a Can Test before loading cannot replace laboratory testing, and masters should check each hold twice daily in suitable weather | Skuld |
| Spodumene concentrate | Priced free on board Australia: about $970 per tonne in November 2025 for 6% lithium oxide | Port and freight costs sit with the buyer under a free-on-board basis | USGS lithium |
| Lithium carbonate and hydroxide | Carbonate priced cost, insurance and freight China; hydroxide free on board China | The seller pays freight and insurance to China for carbonate, the buyer pays from the Chinese port for hydroxide | USGS lithium |
| Cobalt | Mine output from the DRC leaves under annual export quotas | Quota cap of up to 96,600 t a year in 2026 and 2027, including 9,600 t for national strategic reserves | USGS cobalt |
| Natural and spherical graphite | Chinese exports of 115,000 t of natural graphite and 37,400 t of spherical purified graphite in January-September 2025 | Destinations moved: a Chinese spherical graphite plant in Central Java, Indonesia, took 33% of exports | USGS graphite |
| Rare earth compounds and metals | Chinese exports licensed under rules from April 2025 | China began issuing general licenses to selected exporters after the November 2025 suspension of the October controls | USGS rare earths |
What is liquefaction and why does it matter for nickel ore?
Liquefaction is the process by which a bulk cargo with too much moisture behaves like a liquid when the ship rolls and pitches, which can shift the cargo and endanger the vessel. Skuld describes two necessary conditions: moisture in the cargo above the limit that the International Maritime Solid Bulk Cargoes Code allows, and vessel motion in heavy weather. A cargo can look dry and still exceed the limit, because the Can Test used before loading is only a preliminary check. Skuld advises owners to plan routes to avoid winds of Beaufort force 6 or 7 or worse, to check each hold twice a day and to notify the club when loading nickel ore in Indonesia or the Philippines.
How do export controls and quotas affect logistics?
Export licenses and quotas act as a gate before shipping, and they change routes and timing. The DRC replaced a temporary cobalt export ban with quotas in October 2025, and the USGS says uncertainty after the ban likely contributed to a sharp rise in US imports and industry stocks in 2025. China's April 2025 licenses for seven medium and heavy rare earths remain in force. Buyers adapt by building inventory, which is the logic behind the stockpile programs on the stockpiles page, where Project Vault's procurement is planned through the trading firms Hartree Partners, Traxys North America and Mercuria Energy Group.
What does rerouting mean for critical mineral trade?
Rerouting makes voyages longer and costlier. UNCTAD reported record growth of nearly 6% in ton-miles in 2024 as long-distance rerouting kept ships busier, with the average haul rising from 4,831 miles in 2018 to 5,245 miles in 2024. It also warned that port disruption has become chronic, not episodic. UNCTAD did not publish a mineral-by-mineral breakdown in the material used for this page, so the effect on any single cargo is not quantified here.
Frequently asked questions
How are critical minerals shipped?
Critical minerals are shipped mainly by sea in forms that range from dry bulk ore and concentrate to bagged chemicals, metals and finished magnets. The contract basis, such as free on board or cost, insurance and freight, decides who carries the freight cost and risk.
Why is nickel ore dangerous to ship?
Nickel ore is dangerous to ship because it can liquefy. If the cargo's moisture content is too high and the ship rolls and pitches in heavy weather, the cargo can behave like a liquid and shift, which Skuld identifies as the risk behind its guidance to check holds twice daily.
Do export controls affect shipping of critical minerals?
Export controls affect shipping of critical minerals by requiring licenses or capping volumes before a cargo can leave. Examples are the DRC cobalt quotas of up to 96,600 t a year in 2026 and 2027 and China's April 2025 rare earth licensing.
What is a free-on-board price for lithium?
A free-on-board price for lithium covers the cost up to loading at the named port, with the buyer paying freight from there. The USGS reports spodumene priced free on board Australia at about $970 per tonne in November 2025 and lithium hydroxide free on board China at about $11,200 per tonne.
Sources
Read on October 12, 2026. Figures on this page come from these documents; where a number is an estimate, the source says so.
- UNCTAD: Stormy seas for global shipping (Review of Maritime Transport 2025)
- Skuld: Best practices and safety considerations for nickel ore shipments (15 August 2023)
- USGS Mineral Commodity Summaries 2026. Lithium, cobalt, graphite and rare earths chapters
- Mining Technology: Project Vault (February 2026)
