In any trade transaction, there are two parties – the buyer and the seller.. When it comes to a sea freight shipment, either one or both of them may end up paying different sets of charges to different entities..
Not just for newcomers to the business of exporting and importing, this question sometimes perplexes many already in the business..
In this article I dissect this process to explain who pays what charges in sea freight shipment..
So who pays what charges in a sea freight shipment..??
In an ICC podcast to mark the launch of the Incoterms® 2020 rules in September, Emily O’Connor, Director of Trade and Investment for the International Chamber of Commerce (ICC), said that “people will frequently choose the wrong Incoterms® rule for their transaction”.
O’Connor went on to emphasise the importance for anyone who uses the Incoterms® rules to learn or re-learn them – even if you consider yourself an expert – in order to avoid costly mistakes in the future. “Learn now, ahead of time to avoid problems down the road.” she said.
One of the initiatives designed to help users avoid mistakes is a new online training course – the Incoterms® 2020 Certificate – developed by the educational arm of the ICC, the ICC Academy. This course is the world’s only ICC-endorsed online training on the Incoterms® 2020 rules and is available for purchase here.
Ever since its introduction in 1936, Incoterms® has been a paradox to many many buyers, sellers, traders, freight forwarders, shipping lines and other service providers involved in the business of global trade..
There are several consequences of using the incorrect Incoterms® and users need to fully comprehend what it means when they put a three letter Incoterms® rule into their sales contract..
if you are struggling to learn and understand the rules and how to apply them, don’t worry, help is at hand..
ICC Academy, the educational arm of the ICC has created a new online training course – the Incoterms® 2020 Certificate which is designed to help users both experienced and inexperienced, a comprehensive and up-to-date understanding of the rules, avoid mistakes and save costs.. This course is the world’s only ICC-endorsed online training on the Incoterms® 2020 rules..
No other online training on the new rules can offer the same level of expertise and this course can be purchased online here..
So do yourself a favour and take this highly recommended course which will greatly enhance your knowledge on this crucial trade related subject..
Demurrage and Detention has been a bone of contention between shipping lines and customers for several years..
Shipping lines have been charging demurrage and detention costs on containers that the customers do not pick up or turn in on time, a situation that prevents shipping lines from utilising their equipment effectively..
Customers (importers mainly) on the other hand have been complaining about shipping lines using unfair practices when charging demurrage and detention even if the fault is not on their side..
Maybe there is truth on both sides and in terms of this issue, the Federal Maritime Commission (FMC) is not leaving anything to chance..
The FMC has called for public comment on its Interpretive Rule on Demurrage and Detention under the Shipping Act and in assessing just and reasonable regulations and practices relating to demurrage and detention charges..
Incoterms 2020, the 9th version of the Incoterms® rules has been in the making for a while now.. Following its introduction in Incoterms® in 1936, these international commercial (Inco) trade terms were revised in 1957, 1967, 1976, 1980, 1990, 2000 and 2010 to accommodate changes as global trade developed and evolved..
The International Chamber of Commerce (ICC) chose its centenary year 2019, to launch the 9th version of the Incoterms®, the Incoterms® 2020..
On June 23rd 2016, a 51.9% majority of British voters elected for their country to leave the European Union. This referendum started the nation along a two-year journey to part with the political and economic union encompassing the European continent.
As we draw nearer to the now-extended October 31st 2019 deadline, and with newly elected British Prime Minister Boris Johnson’s promise for “no deal Brexit”, it is more important than ever to take the time to fully understand the impact that Brexit could have on businesses.
Global trade has been around for centuries in various forms, starting from the Silk roads to the current Digital economy/age and has come a long way bringing alongwith it many changes and advances..
After the 3rd Industrial Revolution brought the Internet into play, there has been no turning back for globalisation with global exports accounting for almost 25% of global GDP..
Digitalisation, which was very much in its infancy a few decades ago has become the new frontier of globalization.. Advances like Blockchain, IoT, Big Data, Machine Learning and Artificial Intelligence have arrived in our industry as well and are here to stay, innovate and enhance global trade..
One of the digital advances that is catching on quite quick is an Electronic Bill of Lading..
The Incoterms® rules were developed by the International Chamber of Commerce to facilitate international trade and for the interpretation of the trade terms that the parties to a contract of sale could agree to apply..
Incoterms® were first introduced in 1936 and were revised in 1957, 1967, 1976, 1980, 1990, 2000 and 2010 to accommodate changes as global trade developed and evolved..
Currently, in its 8th version (Incoterms® 2010), the Incoterms® rules have become an internationally recognized and accepted standard and are used worldwide in international and domestic contracts for the sale of goods and have become an essential part of the day-to-day international trade and domestic trade..
The ICC which is celebrating its centenary year recently announced the release date for the latest version of these rules which is the Incoterms® 2020..
Cargo theft can occur anywhere along the supply chain affecting local logistics, transporters, storage yards, groupage operators, LCL consolidators, ports, depots, terminals, insurance, carriers and freight forwarders equally..
BSI Supply Chain Services and Solutions assesses that companies lose more than an estimated $76 million in UK alone due to cargo theft highlighting the seriousness of this issue..
TT Club one of the leading providers of insurance and related risk management services to the international transport and logistics industry and BSI have come together yet again to release the second edition of their report on global cargo theft covering the full year of 2018..