International Freight Services
Why not choose FreightCare for all your International Freight Services? FreightCare’s reliable, import and export, everyday air freight Services and weekly full container or consolidated container sea freight Services from or to Sydney, Melbourne, Brisbane and Perth are designed to improve operational performance and make using international freight Services easier and faster. Contact Australia’s renowned low cost international freight specialists FreightCare, offering cutting edge transportation technology and cost effective International Freight Services.
FreightCare’s vast array of professional International Freight Services includes, worldwide Air Freight Services, weekly LCL and FCL Sea Freight services to or from the USA, Canada, South America, China, Europe, The Middle East and SE Asia. Professional international shipping, container packing and unpacking, U Pack and moving containers, customs clearance services, Australian Quarantine cleaning services, freight insurance, Air Cargo Charter services, RoRo and break-bulk shipping services, Special Project Shipping Services, Transportation Consultancy Services, no matter what your international freight requirement, the team at FreightCare are happy to help.
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FreightCare’s renowned low cost International Freight Services are designed for high performance global transportation operations, with specialised skills and techniques, FreightCare is able to meet the demands of even the most difficult global transportation project.
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TERMS OF TRADE
Outlined below is general information in relation to one of the most important aspects of international trade; INCOTERMS (International Terms of Trade) please contact FreightCare for more specific information about international contracts of sale.
INTERNATIONAL COMMERCIAL TERMS (INCOTERMS)
International Trade terms are key elements of international contracts of sale, they pinpoint and identify the responsibilities and obligations of the buyer, seller and other parties and what to do with respect to;
A) Customs Clearance and
B) Shipment of the goods from the seller to the buyer.
C) Who should pay the costs of loading and unloading the goods.
D) Responsibility for the risk of loss or damage to the goods and who should take out insurance as a protection against these risks?
Incoterms were first published by the International Chamber of Commerce (ICC) in 1936. occasionally, these rules are amended to bring them in line with current trade practices. While Incoterms specifically address questions of division of risk of loss or of damage of the goods between the seller and buyer, they do not involve questions relating to title or ownership of the goods. Therefore, the contract between the buyer and seller should additionally address when title or ownership transfer occurs.
Incoterms do not deal with a breach of contract obligations and its consequences. A breach of contract needs to be resolved by specific contract provisions in a contract. However, there is obviously an relationship between the trade terms and a breach of contract, since the trade terms will often determine when the merchandise is considered to have been delivered from the seller to the buyer.
The Incoterms range from the minimum obligation of the seller (Ex-Works) to the maximum obligation of Delivered terms. The complete range of terms is listed below:
Group E
Departure
EXW - Ex Works
Group F
Main Carriage Unpaid
FCA - Free Carrier
FAS - Free Along Ship
FOB - Free On Board
Group C
Main Carriage Paid
CFR - Cost and Freight
CIF - Cost, Insurance and Freight
CPT - Carriage Paid To
CIP - Carriage and Insurance Paid To
Group D
Arrival
DAF - Delivered at Frontier
DES - Delivered Ex Ship
DEQ - Delivered Ex Quay
DDU - Delivered Duty Unpaid
DDP - Delivered Duty Paid
The Abbreviations: E-, F-, C- and D- terms
There are four (4) categories of trade terms with the first letter of the term indicating the category. The first group has only one trade term; namely Ex - Works (EXW). In the other three groups there are multiple terms. EXW represents the seller’s minimum obligation, since the exporter only has to make the goods available at its premises.
The letter F signifies that the seller must hand over the goods to a nominated carrier Free of risk and expense to the buyer. Under the F- terms the seller has to arrange any necessary pre-carriage to reach the agreed point for handing the goods to the carrier. It is the buyer’s responsibility to arrange and pay for the main carriage and all other associated costs.
The letter C signifies that the seller must bear certain Costs even after the critical point where title or ownership has passed. Under the C-Terms the seller arranges and pays for the main contract of carriage and in some instances associated costs including insurance coverage.
The letter D signifies that the goods must arrive at a stated Destination. Under the D-Terms the seller undertakes to arrange and pay for the main contract of carriage and associated costs including insurance coverage.
C-Terms differs from D-Terms as the seller fulfills its obligation by shipping the goods from its Country under the C-Terms. Under the D-Terms the seller fulfills its obligation only when the goods reach a stated Destination.
Example of a specific Intercom
One of the most common terms of sale on international transactions is CFR or "Cost and Freight". Under this term the seller must organise and pay the costs and freight required to bring the goods to the stated port of destination and load them on board. The risk of loss or damage to the goods after the time the goods have been loaded on the vessel is thereafter with the buyer.
For example, under the CFR -Term the seller must:
1) Provide the merchandise and a commercial invoice conforming to the contract of sales.
2) Arrange and pay for the carriage of the goods to the named port of destination on or before the agreed date.
3) Arrange and pay for the loading and unloading of the goods on and off the vessel.
4) Pay the necessary costs associated with Customers in order to export the goods.
5) Give notice to the buyer of the shipment and provide relevant transportation documentation.
6) Pay costs in connection with checking, packaging and marking the goods in accordance with the contract.
Under the same CFR-Term the buyer must:
1) pay the price stated in the contract of sale.
2) organise and pay for any import licenses and duties.
3) Accept delivery of the goods from the carrier at the named port of destination.
4) Bear all risks of loss after the goods have been loaded on the vessel.
Key points of the CFR term are:
1) The CFR term is only to be used for sea and inland waterway transport.
2) Since the point of destination is mentioned after the CFR term (port of shipment) the critical point where the seller meets his obligation is usually omitted (receiving port).
3) In order to be consistent with the CFR term, the contract should not specify that delivery should take place not later than a specified date of destination. The seller has fulfilled its contract upon shipment, not upon arrival.
4) All Incoterms are based on the same principle that the risk of loss or damage to the goods is transferred from seller to buyer when the seller has fulfilled his delivery obligation. The CFR term specifies that the risk is transferred when the goods have passed the ship’s rail at the named port of shipment.
