SHIPPING INCOTERMS

Shipping Methods:

1. EXW (Ex Works): The seller makes the goods available at their premises or another named place (factory, warehouse, etc.). The buyer is responsible for all costs and risks from that point onward.

2. CPT (Carriage Paid To): The seller pays for the carriage of the goods to the named destination. However, the risk and responsibility transfer to the buyer once the goods are handed over to the carrier.

3. CIP (Carriage and Insurance Paid): Similar to CPT, but the seller also provides insurance coverage against the buyer's risk of loss or damage during carriage.

4. CFR (Cost and Freight): The seller pays for the costs and freight to deliver the goods to the named destination port. However, the risk transfers to the buyer once the goods are loaded on the vessel.

5. CIF (Cost, Insurance, and Freight): Similar to CFR, but the seller also provides insurance coverage against the buyer's risk of loss or damage during carriage.

6. CIF Felixstowe (Cost, Insurance, and Freight Felixstowe): A specific version of CIF indicating the destination port (Felixstowe).

7. DAT (Delivered at Terminal): The seller delivers the goods, unloaded, at a named terminal (port or warehouse) at the destination. The buyer is responsible for unloading and any further transportation.

8. DAP (Delivered at Place): The seller delivers the goods to a named destination (not necessarily a terminal), ready for unloading, but without clearing the goods for import.

9. DDP (Delivered Duty Paid): The seller is responsible for delivering the goods to the named destination, cleared for import, and pays all applicable duties and taxes.

10. FAS (Free Alongside Ship): The seller delivers the goods alongside the vessel at the named port. The buyer is responsible for loading the goods onto the vessel and bears all costs and risks from that point onward.

11. FCA (Free Carrier): The seller delivers the goods to a named carrier or another person nominated by the buyer at a named place. The risk transfers to the buyer at that point.

12. FOB (Free On Board): The seller is responsible for delivering the goods on board the vessel nominated by the buyer at the named port of shipment. The risk transfers to the buyer once the goods are on board.

 

Container:

1. FCL (Full Container Load): FCL refers to a shipping arrangement where an entire shipping container is exclusively reserved for a single shipment from one shipper. This is suitable for large shipments that fill or nearly fill a standard-sized container.

2. LCL (Less than Container Load): LCL denotes a shipping method where multiple smaller shipments from different shippers are combined and shipped together in a shared container. It is cost-effective for smaller shipments that do not require the use of an entire container.

 

Shipment:

Parcel: A small package or object that is wrapped and usually intended for shipment or delivery.

Freight: Goods or cargo transported in bulk, typically by truck, train, ship, or aircraft. Freight refers to larger quantities of items being transported together as a single shipment.