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Transportation terms commonlly used in International merchand



Incoterms or International CommercialTerms are a series of international sales terms that are widely used throughout the world. They are used to divide transaction costs and responsibilities between buyer and seller and reflect state-of-the-art transportation practices. They closely correspond to the U.N. Convention on Contracts for the International Sale of Goods. Incoterms deal with the questions related to the delivery of the products from the seller to the buyer. This includes the carriage of products, export and import clearance responsibilities, who pays for what, and who has risk for the condition of the products at different locations within the transport process. Incoterms are always used with a geographical location and do not deal with transfer of title. They are devised and published by the International Chamber of Commerce (ICC). The English text is the original and official version of Incoterms 2000, which have been endorsed by the United Nations Commission on International Trade Law (UNCITRAL). Authorized translations into 31 languages are available from ICC national committees.

Group E - Departure:
EXW. Ex Works (named place): the seller makes the goods available at his premises.

Group F - Main Carriage Unpaid:
FCA. Free Carrier (named place): The seller hands over the goods, cleared for export, into the custody of the first carrier (named by the buyer) at the named place. This term is suitable for all modes of transport, including carriage by air, rail, road, and containerised / multi-modal transport.
FAS. Free Alongside Ship (named loading port): free Alongside Ship: The seller must place the goods alongside the ship at the named port. The seller must clear the goods for export; this changed in the 2000 version of the Incoterms. Suitable for maritime transport only.
FOB. Free On Board (named loading port): the classic maritime trade term, Free On Board: seller must load the goods on board the ship nominated by the buyer, cost and risk being divided at ship's rail. The seller must clear the goods for export. Maritime transport only.

Group C - Main Carriage Paid:
CFR. Cost and Freight (named destination port): seller must pay the costs and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods have crossed the ship's rail. Maritime transport only.
CIF. Cost, Insurance and Freight (named destination port): Exactly the same as CFR except that the seller must in addition procure and pay for insurance for the buyer. Maritime transport only.
CIF ASWP. Cost, Insurance and Freight with ASWP Same as CIF, with the indication of Any Safe World Port
CPT. Carriage Paid To (named destination port): the general/containerised/multimodal equivalent of CFR. The seller pays for carriage to the named point of destination, but risk passes when the goods are handed over to the first carrier.
CIP. Carriage and Insurance Paid to (named destination port): the containerised transport/multimodal equivalent of CIF. Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are handed over to the first carrier.

Group D - Arrival:
DAF. Delivered At Frontier (named place)
DES. Delivered Ex Ship (named port)
DEQ. Delivered Ex Quay (named port)
DDU. Delivered Duty Unpaid (named destination place)
DDP. Delivered Duty Paid (named destination place)
Ex Works
Ex works (EXW) is an Incoterm. It means that the seller X has the goods ready for collection at his premises (Works, factory, warehouse, plant) on the date agreed upon. The buyer pays all transportation costs and also bears the risks for bringing the goods to their final destination. This term requires that the buyer must be able to carry out export formalities in the country of supply, these days almost impossible. Therefore in the vast majority of cases where terms are quoted EXW they actually intend the seller to carry out export formalities which means that the correct term is FCA (Seller's premises).
Free Carrier
Free Carrier (FCA) is an Incoterm. The seller delivers the goods into the custody of the first carrier, and this is where risk passes from seller to buyer. The buyer pays for the transportation. It can be used for all modes of transportation including multimodal transport, such as in shipping containers where the ship's rail plays no relevant part in determining a shipping point. FCA is also the term to use in place of FOB for airfreight transactions.
Free Alongside Ship
Free Along Side (FAS) is an Incoterm. It means that the seller pays for transportation of the goods to the port of shipment. The buyer pays loading costs, freight, insurance, unloading costs and transportation from the port of destination to his factory. The passing of risk occurs when the goods have been delivered to the quay at the port of shipme
Free On Board
FOB, an abbreviation for either Free On Board or Freight on Board, is a term commonly used when shipping goods, to indicate who pays loading and transportation costs, and/or the point at which the responsibility and ownership of the goods transfers from shipper to buyer. The precise meaning of the term FOB varies.
             Contents
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1 Incoterm
2 North American use
3 Accounting and auditing
4 eCommerce an abbreviation
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Incoterm
Under the Incoterm standard, FOB stands for "Free On Board". Indicating "FOB" means that the seller pays for transportation of the goods to the port of shipment, plus loading costs. The buyer pays freight, insurance, unloading costs and transportation from the arrival port to the final destination. The passing of risks occurs when the goods pass the ship's rail at the port of shipment. Internationally the term specifies the port of loading, e.g., "FOB New York" or "FOB Vancouver."
North American use
Domestically within the United States and Canada, "FOB" is sometimes still used as per the long-discontinued "Foreign Trade Definitions" of 1941, with at least four different precise meanings. The term is used in two common phrases, "FOB shipping point" and "FOB destination," to distinguish when the title of goods passes from the seller to the buyer. Under the terms of "FOB shipping point," the title of the goods passes to the buyer at the shipping point. Similarly, under the terms of "FOB destination", the title of the goods passes to the buyer when the goods arrive at their destination. The distinction is important because it determines who pays for the shipping costs of the merchandise: whoever holds the title to the merchandise at the time of its shipping pays for its transportation costs unless otherwise noted (e.g., freight prepaid or freight collect). Also, it is important that if the shipment is damaged while traveling the owner must file the freight claim. Note that this usage is inconsistent with the official Incoterm definitions. North American FOB definitions correspond to Incoterm approximately as follows:

North America Incoterm
FOB shipping point or FOB shipping point, freight collect FCA shipping point
FOB shipping point, freight prepaid CPT destination
FOB destination or FOB destination, freight prepaid DDU destination
FOB destination, freight collect No Incoterm equivalent

Accounting and auditing
When counting inventory, merchandise in transit plays a crucial role depending on whether it is added to the company's balance sheet. Items under "FOB shipping point/destination" generally do not appear in stock listings at year ends. However, they should be included as the risk and rewards of ownership have transferred to the buyer. A trade term requiring the seller to deliver goods on board a vessel designated by the buyer. The seller fulfills its obligations to deliver when the goods have passed over the ship's rail. When used in trade terms, the word "free"means the seller has an obligation to deliver goods to a named place for transfer to a carrier.
eCommerce
With the advent of e-commerce, most commercial electronic transactions occur under the terms of "FOB shipping point" or "FCA shipping point". Most analysts see this as a disadvantage of online shopping compared to traditional in-person purchasing, where "FOB destination" is more prevalent.
Cost and Freight
Cost and Freight (CFR) is an Incoterm. It means that the seller pays for transportation to the Port of Loading (POL), loading and freight.
The buyer pays for the insurance and transportation of the goods from the Port of Discharge (POD) to his factory. The passing of risk occurs when the goods pass the ship's rail at the port of shipment which means that this term cannot be used for airfreight or land transport and also is inappropriate for most containerised sea shipments - the term CPT is the appropriate one for these.
Cost, Insurance and Freight
Cost, Insurance and Freight (CIF) is a common term in a sales contract that may be encountered in international trading when ocean transport is used. When a price is quoted CIF, it means that the selling price includes the cost of the goods, the freight or transport costs and also the cost of marine insurance. CIF is an international commerce term (Incoterm). CIF is identical in most particulars with Cost and Freight (CFR), and the same comments apply, including its applicability only to conventional maritime transport.
In addition to the CFR responsibilities, the seller under CIF must obtain in transferable form a marine insurance policy to cover the risks of transit with insurers of repute.
The policy must cover the CIF price plus 10 per cent and where possible be in the currency of the contract. Note that only very basic cover is required equivalent to the Institute "C" clauses, and buyers should normally insist on an "all-risk" type of policy such as that under the Institute "A" clauses.
The seller's responsibility for the goods ends when the goods have been delivered on board the shipping vessel. In the guidelines for CIF published in Incoterms 2000 the term "carrier" does not appear and it clearly states "the seller must deliver the goods on board the vessel at the port of shipment" which makes CIF the incorrect term to use where the seller wishes their responsibility to end when they deliver the goods into the hands of a carrier prior to the goods passing the ship's rail at the port of loading. In the great majority of transactions the more correct term is CIP. This term is only appropriate for conventional maritime transport, not ro/ro or international container movements.
CIF ASWP
CIF ASWP indicates that the supplier is responsible for insuring on behalf of the buyer until goods arrive and are unloaded at the port of destination. The opposite to this is FOB (Free On Board), which means the buyer is responsible for payment to the seller when the good is loaded onto the ship at the port of origination. ASWP indicates Any Safe World Port. Apart from the above poor English it should be carefully noted that "CIF ASWP" is NOT an INCOTERM of the International Chamber of Commerce. "ASWP" (any safe world port) may be added as a separate article in a Purchase Contract but should not be confused with an INCOTERM
Carriage Paid To
Carriage Paid To (CPT) is an Incoterm. It can be used for all modes of transport including multimodal transport. The seller pays for the freight to the named point of destination. The buyer pays for the insurance. The passing of risk occurs when the goods have been delivered into the custody of the first carrier.
Carriage and Insurance Paid to
Carriage and Insurance Paid to (CIP) is an Incoterm, usable with any mode of transport. The passing of risk occurs when the goods have been delivered into the custody of the first carrier. This means that the buyer bears all risk and any additional costs occurring after the goods have been so delivered.It is the same as CPT except that the seller also pays for the insurance. Seller is required to obtain insurance only on minimum cover, additional coverage is responsibility of buyer or must be agreed between seller and buyer. Under CIP seller is also required to clear the goods for export.
Delivered At Frontier
Delivered At Frontier (DAF) is an Incoterm. It can be used when the goods are transported by rail and road. The seller pays for transportation to the named place of delivery at the frontier. The buyer arranges for customs clearance and pays for transportation from the frontier to his factory. The passing of risk occurs at the frontier.
Delivered Ex Ship
Delivered Ex Ship (DES) is anIncoterm. Where goods are delivered ex ship, the passing of risk does not occur until the ship has arrived at the named port of destination and the goods made available for unloading to the buyer. The seller pays the same freight and insurance costs as he would under a CIF arrangement.
Delivered Ex Quay
Delivered Ex Quay (DEQ) is an Incoterm. It means the same as DES, but the passing of risk does not occur until the goods have been unloaded at the port of destination Quay

lundy





The qay or jetty at Lundy Island, UK A qay, or also called "Quay" pronounced 'key', is a wharf or bank where ships and other vessels are loaded. A qay is constructed parallel to the bank of a waterway. The word is commonly used in United Kingdom, Ireland, Canada, Australia and New Zealand
Delivered Duty Unpaid:
Delivered Duty Unpaid (DDU) is an Incoterm. It means that the seller delivers the goods to the buyer to the named placed of destination in the contract of sale. The goods are not cleared for import or unloaded from any form of transport at the place of destination. The buyer is responsible for the costs and risks for the unloading, duty and any subsequent delivery beyond the place of destination. However, if the buyer wishes the seller to bare cost and risks associated with the import clearance, duty, unloading and subsequent delivery beyond the place of destination, then this all needs to be explicitly agreed upon in the contract of sale. The term is used irrespective of the mode of transport. However when the delivery is to take place at the port of destination, either on board the vessel or on the quay, then the DES or DEQ terms shall be used.
Delivered Duty Paid
Delivered Duty Paid (DDP) is an Incoterm. It means that the seller pays for all transportation costs and bears all risk until the goods have been delivered and pays the duty
Dimentions of a container


Container Dimensions (metric)
Standard External Container Dimensions
    8(ft) 10(ft) 20(ft) 30(ft) 40(ft)
Length : 2,42m 3,05m 6,06m 9,12m 12,19m
Width : 2,17m 2,44m 2,44m 2,44m 2,44m
Container Height
Height: Standard 2,26m 2,59m 2,59m 2,59m 2,59m
High cube 2,89m 2,89m 2,89m 2,89m 2,89m
Standard Internal Container Dimensions
    8(ft) 10(ft) 20(ft) 30(ft) 40(ft)
Internal Length : 2,28m 2,80m 5,87m 8,93m 12,00m
Internal Width : 2,10m 2,33m 2,33m 2,33m 2,33m
Internal Height: Standard 2,04m 2,35m 2,35m 2,35m 2,35m
High cube 2,65m 2,65m 2,65m 2,65m 2,65m
End Door Aperture
Width : 2,09m as req. 2,28m 2,28m 2,28m
Height Standard 1,94m as req. 2,26m 2,26m 2,26m
High cube -- as req. 2,56m 2,56m 2,56m
Floor area : 4,78m2 6,69m2 13,93m2 21,09m2 28,33m2
Cubic capacity Standard 9,28m3 15,89m3 32,85m3 49,84m3 66,83m3
High cube -- 17,84m3 37,09m3 56,21m3 75,32m3
Weight : 0,95mt 1,52mt 2,23mt 2,84mt 3,35mt
             

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