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FOOD & OIL EXPORT & EMPORTS......
EXW ,FOB ,CFR,CIF,CTP
Shipping terms, also known as "Incoterms" (International Commercial Terms), are standardized terms used in international trade to define the responsibilities and obligations of buyers and sellers in the transportation of goods. The International Chamber of Commerce (ICC) regularly updates and publishes these terms to provide clarity and consistency in global trade transactions. As of my last knowledge update in January 2022, here are the major types of shipping terms:
EXW (Ex Works): The seller makes the goods available at their premises, and the buyer is responsible for all transportation, customs clearance, and associated costs.
FCA (Free Carrier): The seller delivers the goods, cleared for export, to a carrier nominated by the buyer at a specified place. The risk transfers to the buyer once the goods are handed over to the carrier.
CPT (Carriage Paid To): The seller is responsible for the cost of transporting the goods to a named destination. Risk transfers from the seller to the buyer when the goods are handed over to the carrier.
CIP (Carriage and Insurance Paid To): Similar to CPT, but the seller also arranges and pays for insurance during transit. The risk transfers from the seller to the buyer when the goods are handed over to the carrier.
DAT (Delivered at Terminal): The seller is responsible for delivering the goods, unloaded, at a named terminal or destination. The buyer is responsible for all further costs and risks.
DAP (Delivered at Place): The seller is responsible for delivering the goods to a named place, typically the buyer's location or another agreed-upon destination. The seller bears the risk until delivery.
DDP (Delivered Duty Paid): The seller is responsible for delivering the goods to the buyer's location, cleared for import, and pays all costs, including duties and taxes.
FAS (Free Alongside Ship): The seller delivers the goods to the dock or quay alongside the vessel designated by the buyer for export. The risk transfers when the goods are alongside the ship.
FOB (Free On Board): The seller delivers the goods on board the vessel at the port of shipment. The risk transfers when the goods pass the ship's rail.
CFR (Cost and Freight): The seller is responsible for delivering the goods on board the vessel at the port of shipment and pays for the cost of freight to the named port of destination. Risk transfers when the goods pass the ship's rail.
CIF (Cost, Insurance, and Freight): Similar to CFR, but the seller also arranges and pays for insurance during transit. The risk transfers when the goods pass the ship's rail.
These terms help parties in international trade agreements clarify their responsibilities regarding transportation, costs, and risk. It's essential to specify the chosen Incoterm in your contract to avoid misunderstandings and disputes during the shipping process. Note that Incoterms may be subject to updates and changes, so it's advisable to refer to the latest version published by the ICC for the most accurate information.
Major types of shipping terms are as follow
1. Cost Insurance and Freight
2. Bill of Laden
3. Change of Destination
4. Container Yard to Container Yard
5. Demurrage
Incoterms
Exworks
FCA-Free Carrier
Free On Board
Cost Net Freight
Cost Insurance Freight
