The Future is Here
Innovation in the world of international shipping has been accelerating over the years, transforming the industry with new technologies and methods. Here are some of the prominent innovations that, in my opinion, will shape the future of international shipping.
CIF – Cost, Insurance & Freight
The seller clears the goods for export and delivers them when they are on board at the port of shipment. The seller bears the cost of freight and insurance to the designated port of destination. Also, he is responsible for any damage to the goods on board the ship. The seller needs to purchase the […]
CFR – Cost and Freight
CFR incurs more significant risk and responsibility for the seller who pays for the carriage of the goods up to the named port of destination. The risk is transferred to the buyer at the country of export. Specifically, when the goods have been loaded on board the ship. The shipper pays for export clearance and […]
FOB – Free On Board
Under FOB terms, the seller bears costs and risks until the goods are loaded on board of the designated vessel. The seller’s responsibility includes arranging export clearance. At the same time, the buyer pays the cost of marine freight, bill of lading fees and insurance. He is also responsible for unloading and local transportation costs […]
FAS – Free Alongside Ship
The seller delivers the goods alongside the buyer’s vessel at the named port of shipment. It means that the buyer bears all costs and risks of loss or damage from that moment. The FAS term requires the seller to clear the goods for export (under previous Incoterms, the buyer arranged export clearance).
DDP – Delivered Duty Paid
DDP means the seller bears all risks and costs associated with clearing and delivering the goods to the designated place. The seller is liable for clearing the goods through customs in the buyer’s country. It includes payment of both duties and taxes. Furthermore, he needs to obtain the necessary authorisations and registrations from the authorities. […]
DAP – Delivered At Place
The seller delivers the goods to a named place of destination but is not responsible for unloading. His responsibilities include packing, export clearance, carriage expenses and any terminal costs up to the agreed destination port. DAP means the buyer is responsible for all costs, duties and taxes associated with unloading the goods. He is also […]
DPU – Delivered at Place Unloaded
It was previously known as Delivered at Terminal (DAT). It has been renamed because the buyer (or seller) may want to specify the delivery location rather than the terminal. This term is often used for consolidated containers with multiple consignees. It is the only term that tasks the seller with unloading the goods. The seller […]
CIP – Carriage and Insurance Paid To
CIP is broadly similar to CPT. However, the seller is required to insure the goods in transit and to pay the transportation itself. The seller clears the goods for export and delivers them to the carrier or place of destination as instructed by the buyer. The seller is responsible for the transportation costs of the […]
CPT – Carriage Paid To
CPT goes beyond FCA by specifying that the seller bears the costs of transportation to the buyer’s place of destination. The seller clears the goods for export and delivers them to the carrier or place of destination as instructed by the buyer. At the defined place of shipment is where the risk is transferred to […]
