Shipping - International Terms of Trade

 

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Colless Young - Incoterms 2010

Incoterms describe the Terms of Shipment, specifying who pays the freight, what share of other costs the shipper pays for, and what the importer pays for. When the shipper includes the freight with the cost of their goods, the two main terms used are: CFR (Cost and freight) and CIF (Cost, Insurance and Freight). Sometimes the shipper will pay all costs up to the consignee’s door, in which case the main terms used are: DDP (Delivery Duty Paid) or DDU (Delivery Duty Unpaid).


To maintain control over your cargo right from the point of despatch, for imports we generally recommend that you pay the freight at this end, allowing you to nominate us as your Forwarding Agent. In these cases, the main terms used will be: FOB (Free on Board), meaning the shipper pays costs to get it to the port at their side and you pay the freight at this end; or EXW (Ex Works), meaning you pay all charges from their premises onwards, in which case we arrange cartage to the port of loading and pay the local wharf or airport charges over there on your behalf, and combine the costs on your freight invoice.

The attached link will give you an insight to the various shipping terms used for air and sea freight.