Newcomer / Intro Cargo Question

What happens to cargo when you change ships? If the new ship's hold is smaller than the previous ship then it can't transfer?
 
The ship you are changing to must have enough cargo capacity to hold whatever cargo you currently have in your ship. Otherwise, you can't change to that ship. There is no cargo storage outside of your ship available (unless you get a Fleet Carrier after they go live).
 
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