Shipping Agreement Types

As mentioned above, when importing or exporting goods, it is recommended to use incoterms in the agreement. In addition, the measure used to calculate import duties depends, among other things, on the incoterms used. Therefore, this is always a factor that must be taken into account when calculating shipping costs. There is a lot to settle for international freight transport. One of the most important things is to make sure that there are clear agreements with the foreign supplier (or customers). To illustrate this, incoterms were created and means „International Commercial Terms.“ Incoterms are an international standard that details the transportation rights and obligations of buyers and sellers. For example: the buyer assumes almost all the responsibilities for the costs and risks associated with packing, loading and transporting the goods. From the factory to the final destination. It is also responsible for regulating all customs regimes, such as export declaration, customs clearance in the country of production and customs clearance in the destination country. The ex Works is generally not recommended for maritime and air transport, while incoterm is widely used in road transport. The „Ex Works“ incoterms at „Delivery Duty Paid“ can be applied to all modes of transport. The „Free Alongside Ship“ delivery conditions to „Expense, Insurance and Freight“ can only apply to shipping.

For any type of Incoterm, it is important that the place be mentioned where risks and responsibilities move from seller to buyer. Since each of the different Incoterms identifies the responsibilities of the seller and buyer in the transaction at different points of the shipping trip, some incoterms work best for certain types of transport. The four rules for international trade established by Incoterms 2010, in which transport is entirely carried out by water, are as follows. It is important to note that these conditions are generally not suitable for shipments in ship containers; the date on which the danger and liability of the goods are transferred is when the goods are loaded on board the ship and when the goods are sealed in a container, it is impossible to verify the condition of the goods there.