Preview

Incoterms Use for Shipping Terms

Good Essays
Open Document
Open Document
2924 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Incoterms Use for Shipping Terms
INCOTERMS USE FOR SHIPPING TERMS

Incoterms rules are international trade terms promulgated by the International Chamber of Commerce (ICC). Though used primarily in international trade, they are seeing increasing use in domestic trade. When used, they should specify the specific shipping term, the location, Incoterms, and the edition. An example is “DAT Pier 82 Port of Philadelphia Incoterms® 2010.” Incoterms rules specify the point at which risk of loss occurs, but not, strictly speaking, where title changes. In addition, they specify which party is responsible for freight (or carriage) charges, but not payment terms for the goods themselves.
The ICC prefers that “Incoterms” be used as an adjective, not a noun, in prose. The word itself is trademarked and the rules are copyrighted, so at least the last edition, Incoterms® 2010, should include the trademark. The U.S. national council of the ICC is the U.S. Council for International Business (USCIB). The leading U.S. authority is Frank Reynolds, who served on the eight-member committee of the ICC which drafted the Incoterms® 2010 rules.
New rules have been published every ten years, and the second latest, Incoterms 2000, is still in widespread use. The rules are brought more up-to-date in their application, and sometimes, old terms are deleted and new terms are added. There has been a tendency to incorporate container shipment provisions, and to place responsibility for export specifics more on the seller and import specifics more on the buyer. The edition of the rules should always be specified, such as “FOB Terminal 86 Port of Seattle Incoterms 2000.” The named place (“delivery” under Incoterms rules) is where risk of loss changes, and usually, but not always, where responsibility for carriage charges changes.

Incoterms rules are not law and are incorporated into the sales contract by explicit reference to them. The sales contract includes additional specifics of the contract, and may

You May Also Find These Documents Helpful

  • Satisfactory Essays

    kfdlkfd

    • 414 Words
    • 4 Pages

    When a shipment is labeled ____________ __________ __________, this means the seller pays the shipping charge and adds it to the invoice.…

    • 414 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Financial Analysis-Ups

    • 6764 Words
    • 28 Pages

    UPS is the world’s largest package delivery company, in terms of revenue and volume, and a global leader in supply chain solutions and less-than-truckload transportation services. In 2009, the company delivered an average of 15.1 million packages and documents per day throughout the US and to more than 200 countries and territories. The primary business of the company is the time-definite delivery of packages and documents. Besides that, the company also has extended their capabilities to encompass a broader spectrum of service, which known as supply chain service, such as freight forwarding, customs brokerage, fulfillment, returns, financial transaction, repairs and less-than-truckload transportation services (UPS, 2010a).…

    • 6764 Words
    • 28 Pages
    Good Essays
  • Powerful Essays

    Fedex vs Ups

    • 4116 Words
    • 17 Pages

    The $45billion US domestic delivery market could be categorized into 2 segments. These consisted of letters weighing 0 to 2 pounds, packages weighing 2.0 to 70 pounds, and freight weighing over 70 pounds. The mode of transit categories were air and ground with the time categories being overnight, deferred delivery, three day delivery and regular delivery which occurred 4 or more days after pickup.…

    • 4116 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    Forum 3

    • 374 Words
    • 1 Page

    David, Pierre, & Stewart, Richard (2010). International Logistics. 3rd Edition. Mason, OH: Thomson ISBN 13: 978-1-111-21955-0…

    • 374 Words
    • 1 Page
    Good Essays
  • Good Essays

    INCOTERMS – universal trade terminology developed by the International Chamber of Commerce. 13 trade terms that describe the responsibilities of the buyer and seller in international trade.…

    • 1811 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Intermodal Transportation

    • 1162 Words
    • 5 Pages

    What is intermodal transportation? This paper is about how intermodal transportation has been an important part in transportation industry. How does intermodal transportation work? Advantages and disadvantages of intermodal transportation in today’s transportation industry. Containerization is playing a big part in maritime industry. Why is it important to have containerization? Types of containers and sizes. How has containerization improved transportation?…

    • 1162 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

     New entrants: - One of the most significant barriers to enter the trans-oceanic container shipping…

    • 1834 Words
    • 16 Pages
    Powerful Essays
  • Better Essays

    In the United States approximately 40 percent of the containers enter in Seattle, Washington, and 60 percent at the Los Angeles, California, port. Containers on arrival at the port cities are inspected by federal agents and then loaded onto rail cars for movement to the Kansas City distribution center. Variable costs for processing at the port are $5.00 per cubic meter (CBM) in both Los Angeles and Seattle.…

    • 1199 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Metallia Law

    • 3071 Words
    • 13 Pages

    The delivery clause states that the June 1999 shipment CIF (Cost, insurance and Freight) duty has been paid and the material has been loaded on the trucks for the port of Sydney. Therefore though Metallia, USA being the seller pays the costs and freight to bring the goods to the port of destination the risk is transferred to Olympic Steel once the goods are loaded on the vessel. For subsequent orders the port of discharge and specifications are yet to be obtained from Olympic Steel.…

    • 3071 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    Ucp History

    • 960 Words
    • 4 Pages

    are conducting business across great distances in relation to highly valuable cargoes. In this situation,…

    • 960 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Inbound Transportation

    • 1719 Words
    • 7 Pages

    Common inbound logistics gaps Where you’ll find inbound savings How to start an inbound program Visibility and a proactive approach to managing an inbound program Intellectual capital Discover more opportunities in inbound logistics 3 4 5 5 7 7…

    • 1719 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    1. These Rules may be cited as the Merchant Shipping ( Central Mercantile Marine Fund) Rules 1984 .…

    • 1432 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Incoterms

    • 944 Words
    • 3 Pages

    Incoterms are useful for companies involved in international freight transactions. These incoterms are used to determine risks and responsibilities between buyers and sellers and are defined as follow:…

    • 944 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Business English

    • 1153 Words
    • 4 Pages

    The Incoterms rules or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) that are widely used in International commercial transactions or procurement processes. A series of three-letter trade terms related to common contractual sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.…

    • 1153 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Free On the Board method- This means that the seller fulfills their requirement to deliver when the goods have passed within the ship's rail at the named port of transport, and the buyer has to bear the dangers of loss or destruction to the goods from that point and the costs and custom…

    • 856 Words
    • 4 Pages
    Good Essays