5 Essential Notes About: DAP Incoterms (Delivered At Place) 0

5 Essential Notes About: DAP Incoterms (Delivered At Place)

DAP Incoterms means that the seller delivers the goods at the buyer disposal ready for unloading at the named place of destination. The seller is responsible and liable for any cost and risk up to the named place of delivery. The buyer must take the responsibility from that point onward. 1. Who is responsible for unloading the goods from arriving vehicle at the named place of destination? – Under DAP Incoterms the buyer is responsible and pays for unloading the goods at the named place of destination. Under DAT Incoterms the seller is responsible and liable for unloading the goods...

5 Essential Notes about: DAT Incoterms (Delivered At Terminal) 0

5 Essential Notes about: DAT Incoterms (Delivered At Terminal)

DAT Incoterms means that the seller delivers the goods, once unloaded from the arriving means of transport, placed at the disposal of the buyer at a named terminal at the named port or place of destination. “Terminal” includes any place, whether covered or not, such as a quay, warehouse, container yard or road, rail or air cargo terminal. 1. Which party must arrange the carriage under DAT Incoterms? – The seller must contract for the carriage up to the named terminal or agreed place of destination. The seller bears all risks involved in bringing the goods to and unloading them...

5 Essential Notes about: CIF Incoterms (Cost, Insurance & Freight) 0

5 Essential Notes about: CIF Incoterms (Cost, Insurance & Freight)

CIF Incoterms means that the seller delivers the goods on board of the vessel. In addition to cost and freight to destination port, the seller must contract for the insurance. However, the risk of loss or damage during the carriage is for the buyer account. It is highly recommended to read the post about CFR Incoterms on Shipup Blog in addition to current post. 1. Who is responsible for Contacting the carriage and Insurance in CIF Incoterms? – The seller must contract for the carriage to the named place at destination. He also is obliged to contract for the insurance...

5 Essential Notes about: CFR Incoterms (Cost and Freight) 0

5 Essential Notes about: CFR Incoterms (Cost and Freight)

CFR Incoterms (Cost and Freight) means that the seller is obliged to deliver the goods onboard of the vessel. The seller must contract for the carriage and pay for it to the nominated destination. Although he pays the freight cost, the buyer bears the risk of shipment from once the shipment is loaded on board. 1. Which party choose the carrier in CFR Incoterms? – Although the seller contracts for the carriage, it is highly recommended that the buyer instruct him for choosing the carrier. It is mainly because that the buyer has to bear all the risks of any...

5 Essential Notes about: FAS Incoterms (Free Alongside Ship) 0

5 Essential Notes about: FAS Incoterms (Free Alongside Ship)

FAS Incoterms (Free Alongside Ship) means that the seller must place the goods alongside the ship nominated by the buyer. The seller is obliged to arrange all the steps in export country up to alongside the ship. The buyer have to arrange the rest. This terms is to be used only for sea or inland waterway shipments.   1. Which shipments FAS incoterms is suited for? – FAS Incoterms is designed for bulk and break bulk shipments. It is highly recommended not to use this term in containerized shipments. 2. Which party is responsible for loading the goods onboard? –...

5 Essential Notes about: CIP Incoterms 0

5 Essential Notes about: CIP Incoterms

Carriage and Insurance Paid To (CIP Incoterms) means that the seller delivers the goods to the carrier at an agreed place (if any such place is agreed between the parties). The seller must contract and pay the costs of carriage to bring the goods to the named place of destination. The seller contracts for insurance cover against the buyer’s risk of loss or damage to the goods during the carriage. It is highly recommended to read the post about CPT Incoterms on Shipup Blog in addition to current post. 1. Who is responsible for Contacting the carriage and Insurance in...

Essential Notes about: CPT Incoterms (Carriage Paid To) 0

5 Essential Notes about: CPT Incoterms (Carriage Paid To)

Carriage Paid To (CPT Incoterms) means that the seller delivers the goods at agreed place in origin country. The seller is obliged to contract for the carriage of the goods to named destination and pay its costs. it is used in all mode of transports. Costs and Risks of the shipment transfer at different places under this term. 1. Who is responsible for arranging the shipment from named place of delivery to named destination? – The seller is responsible to contract for the carriage, unless otherwise agreed, “on usual terms” and “by the usual route”. The seller is obliged to...

5 Essential Notes about: Free On Board (FOB) Incoterms 0

5 Essential Notes about: Free On Board (FOB) Incoterms

Free On Board (FOB) as a most frequently used Incoterms globally, is only applied to sea and waterway shipments. In plain English FOB means, the seller will be free of costs and risks of shipment by loading the goods on board of the nominated vessel. In other words, once the shipment is loaded on board, all liability and responsibility transfers to the buyer. 1. Which party is obliged to pay the local charges (THC, BL fee, …) in Free On Board (FOB)? – All the charges in origin is for the account of the seller. So the seller must pay...

5 Essential Notes about: Free Carrier (FCA) Incoterms 0

5 Essential Notes about: Free Carrier (FCA) Incoterms

Free Carrier (FCA) means that the seller delivers the goods at its own premises or another named place to the buyer or carrier or any other person nominated by the buyer. This delivery place is in the seller country and usually its premises. So a difference between this term and Ex Works (EXW) is the export formalities that in FCA is for the account of the seller with all costs and risks. 1. What is the main differences between Free Carrier (FCA) and Ex Works (EXW)? – There are two main differences. The first one is that in FCA the...

5 Essential Notes about: Ex Works (EXW) Incoterms 0

5 Essential Notes about: Ex Works (EXW) Incoterms

Ex Works (EXW) means that the seller delivers the goods at the disposal of the buyer at a named place or seller’s premises( i.e. factory, warehouse, …). In other words the buyer arrange the shipment from the seller premises to the final destination. It is one of the frequently used Incoterms specially in containerized and full truck shipments. 1. Which party is responsible for loading the goods at delivery place? – There is no obligation for the seller for loading the goods on collecting vehicle. If the seller does loads, then its at the buyer risk and costs. – Usually,...