Shipping Trading Terms

Shipping internationally can be challenging for many reasons. The most experienced even to the Sahan Cargo crew is the language barrier. To overcome this, a common language for when the traded goods passes from the seller to the buyer is employed. In this case, the trading terms and conditions between the buyer and seller are documented or signed in a contract form or a Commercial Agreement. For Sahan Cargo this is important for it can be used for later reference during the shipping process to define whoever is responsible for arranging and paying of the carriers even in different stages of the shipment.

In international Trade, all these processes of shipping and signing of contracts are guided by the INCOTERMS (International Commercial Terms). The INCOTERMS define the trade contract responsibilities and liabilities between a buyer and seller. They cover whoever is responsible for paying freight costs, insuring goods in transit and covering any import and export duties. Sahan Cargo’s crew encourages on the use of the recognized standard terms used worldwide in international contracts for sales of the goods, It contains all the illustrations explaining the passing of risk and cost from the seller to the buyer in different INCOTERMS.

Some of the most common Incoterms include:

  1. Ex Works (EXW)

The seller makes the goods available for shipment in the collection center or warehouse where the buyer can be able to collect them. On this, the seller has only to provide the buyer with assistance in obtaining an export license or other official authorization.

  1. Free Carrier (FCA)

The seller must deliver the goods to the carrier nominated by the buyer. Under this the seller is responsible for export licensing and customs export clearance. For instance, Sahan Cargo is the nominated carrier, the seller must ensure all the above processes are done which includes loading the goods.

  1. Carriage Paid To (CPT)

The seller pays for the carriage. This term means Sahan Cargo will transport an already paid for carriage.

  1. Carriage and Insurance Paid

The seller fulfills their duties to deliver when it hands the goods over to the carrier. These are majorly shipment contracts not arrival contracts. Sahan Cargo Experts advice on this by recommending the place of delivery in the seller’s country to be defined in the contract as well.

  1. Delivered at Terminal

The seller pays for the carriage to a particular agreed point except for the costs related to import clearance. All the risks fall unto the seller up to the agreed point.

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