How to ship a container?

You want to import a big container full of goods. Great! We can help you with that. All you need is an invoice from your supplier and we will take care of the rest.

However, we are always happy to share industry information with our clients. While you don’t need to be a logistics expert, it is always good to be aware of some of the shipping industry terms.

Say hello to, ‘The Incoterms’.

The Incoterms® (International Commercial Terms) rules are ingrained into today’s trade jargon. With standardized incoterms, Incoterms have been unified in contracts for the sale of goods worldwide and provide rules and guidance to shippers, freight forwarders, importers, exporters, insurers and lawyers dealing in the industry.

We have summarized 10 of the most commonly used Incoterms. If you would like to read and learn more about them, you can always visit the International Chamber of Commerce.

The following set of rules apply to any more or modes of transport.

Ex Works

“Ex Works” signifies that the supplier delivers when it places the goods at the disposal of the customer at the supplier’s premises or at another named place. The supplier does not need to load the goods on any collecting vehicle, nor are they required to clear the goods for export, where such clearance may be applicable.

FCA (Free Carrier)

“Free Carrier” implies that the supplier delivers the goods to the carrier or another person nominated by the customer at the supplier’s premises or another named place. All parties are properly counselled to specify as clearly as possible the point within the named place of delivery, as the risk passes to the customer at that point.

CIP (Carriage And Insurance Paid To)

“Carriage and Insurance Paid to” implies that the supplier delivers the goods to the carrier or another person nominated by the supplier at an agreed place (if any such place is agreed between parties) and that the supplier must have a contract for and pay the costs of carriage necessary to bring the goods to the previously named place of destination.

The supplier also agrees for insurance to cover against the customer’s risk of loss of or damage to the goods during the carriage. The customer should note that under CIP the supplier is required to obtain insurance only on minimum cover. Should the customer wish to have more insurance protection, they would either need to agree on how much with the supplier or to have their own extra insurance arrangements.

You may come across the term CPT, this stands for Carriage Paid To.

DAT (Delivered At Terminal)

“Delivered at Terminal” implies that the supplier delivers when the goods, once unloaded from the arriving transport, are placed at the disposal of the customer at a named terminal and at the named port or destination. “Terminal” defines a place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. The supplier bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination.

DAP (Delivered At Place)

“Delivered at Place” implies that the supplier delivers when the goods are placed at the disposal of the customer on the arriving transport ready for unloading at the named place of destination. The supplier bears all risks involved in bringing the goods to the named place.

DDP (Delivered Duty Paid)

“Delivered Duty Paid” implies that the supplier delivers the goods when the goods are placed at the disposal of the customer, cleared for import on the arriving transport ready for unloading at the named place of destination. The supplier bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import, to pay any duty for both export and import and to carry out all customs formalities.

RULES FOR SEA AND INLAND WATERWAY TRANSPORT

FAS (Free Alongside Ship)

“Free Alongside Ship” implies that the supplier delivers when the goods are placed alongside the vessel (e.g. on a quay or a barge) designated by the customer at the named port of shipment. The risk of loss of or damage to the goods passes when the goods are alongside the ship, and the customer bears all costs from that point onwards.

FOB (Free On Board)

“Free On Board” implies that the supplier delivers the goods on board the vessel nominated by the customer at the named port of shipment or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the customer bears all costs from that moment onwards.

CFR (Cost and Freight)

“Cost and Freight” implies that the supplier delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss or of damage to the goods passes when the goods are on board the vessel. The supplier must carry a contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

CIF (Cost, Insurance and Freight)

“Cost, Insurance and Freight” implies that the supplier delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The supplier must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.

The supplier also carries insurance coverage against the customer’s risk of loss of or damage to the goods during the carriage. The customer should note that under CIF the supplier is required to obtain insurance only on minimum coverage. Should the customer wish to have more insurance coverage, it should then negotiate this and agree the terms with the supplier or make their own arrangements for extra insurance.

We hope you now feel a bit more familiar and confident with some of the terms. If you have any further questions you can always reach out to us at info@45HC.com We are available 24/7 to assist you in any way possible.