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SEA FREIGHT SOLUTIONS
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What Happens with my Sea Freight?
Freight 365 offer complete Sea Freight Import & Export Solutions Globally. Being proud members of the WCA (World Cargo Alliance) and GLA (Global Logistics Alliance) gives us access to more than 30,000 verified agents globally.
For more information, contact the team, details via the button below.
WHERE DO I START?
The 5 key pieces of information that your forwarder will require to provide an accurate quote are:
The Origin of the Cargo, The Dimensions of your Shipment, the Incoterms on which you will be Shipping, The Final Destination and the Deadline for Delivery
Origin of Cargo
Provide extremely accurate measurements, as shipping lines are quick to capitalise on any potential discrepancies. If the information you provide is even slightly wrong, it can give the carrier an opportunity to impose additional charges or delay your cargo.
The Dimensions
Provide extremely accurate measurements, as airlines are quick to capitalise on any potential discrepancies. If the information you provide is even slightly wrong, it can give the carrier an opportunity to impose additional charges or delay your cargo.
Once the airline has your cargo, your options are limited, and you may have no choice but to pay any additional charges. To avoid this, ensure you provide accurate measurements and weights, including the pallet or packaging.
The Incoterms
International Commercial Terms, commonly known as Incoterms, define the rules and conditions that buyers and sellers use in global trade. These terms are internationally recognised and were developed by the International Chamber of Commerce (ICC).
These terms help determine the costs of your shipment and clarify who is responsible for covering them. They also specify the point at which the risk transfers during each stage of your shipment. Ask for our Incoterms 2020 guide.
The Final Destination
It is essential to provide precise addresses and any relevant restrictions, including preferred delivery times, requirements for forklifts or other lifting equipment, access limitations, or potential challenges the haulier might face when delivering your cargo.
If these details are incorrect or any restrictions are not explained, you could incur additional charges or possible delays, this could mean your cargo incurring warehousing, wasted journey or storage fees, along with delays.
The Deadline
The most crucial factor in providing an accurate quote for the most cost-effective service is the deadline. A good Forwarder will be familiar with both reliable and economical carriers for global freight movements, knowing the deadline is essential to ensure the most suitable services.
If we have plenty of time, we can provide quotes for more cost-effective services while still ensuring excellent service. However, urgent shipments should be handled by reliable carriers to meet tighter deadlines.
Why Choose Sea Freight?
Cost-Effective for Large Shipments
Sea freight is often the most economical option for businesses shipping large quantities of goods or bulk cargo. With the ability to accommodate massive volumes, container ships allow for a significant reduction in cost per unit, making sea freight ideal for industries that deal with heavy or oversized products.
Flexibility for a Range of Cargo
Whether you’re transporting containers of manufactured goods, raw materials, or vehicles, sea freight offers the flexibility to handle a wide variety of cargo. From Full Container Loads (FCL) to Less than Container Loads (LCL), sea freight can be tailored to match your shipment size and requirements.
Sustainability
For companies aiming to reduce their environmental impact, sea freight is a more sustainable choice. Cargo ships emit less CO2 per ton per kilometre compared to air or road transport, making it a greener option. By using sea freight, businesses can maintain a lower carbon footprint while still meeting their logistics goals.
ORIGINS, DESTINATIONS & COMMODITIES
Even if you, your customer, or your supplier have a warehouse in a beautiful location, how easy is it to access? More importantly, how feasible is it for a 44-ton articulated truck? It’s crucial to inform your Freight Forwarder about any restrictions or access challenges the haulier might face on the way to collect or deliver the goods.
If the haulier is not informed of any restrictions, it could result in delayed collections/deliveries, additional charges, warehousing or storage fees, potential loss or damage to goods, and dissatisfied customers.
For example, if you have a shipment of 2 pallets, each no larger than 1.50CBM (120x100x125cms) and weighing under 300 kg, coming from India, it could easily be delivered in a van. However, if your warehouse is located at the end of a narrow country lane that isn’t suitable for a large truck, assuming the cargo will arrive in an appropriate vehicle without informing us of these restrictions could be problematic. Often, LCL shipments are consolidated onto articulated trucks carrying multiple deliveries in the area to maximise efficiency, reduce carbon footprint, and offer the best pricing. If the haulier encounters difficulties accessing your location, you could incur costs for a wasted journey, a return trip to the haulier’s distribution warehouse, storage fees (if the warehouse cannot reschedule the delivery promptly), and charges for unloading and reloading. Avoid these issues by communicating any access restrictions in advance.
For full containers (FCL’s), is your site accessible and do you have the capability to unload a container from the rear doors, or do we need to request RH&D (Receive Handle & Deliver) services on a curtain sided vehicle to allow offload from the side for long pieces, do we need to arrange smaller vehicles, such as 18.5T or 7.5T for multiple drops?
If you provide accurate information about access restrictions, your Freight Forwarder could arrange for your goods to be delivered to a nearby distribution warehouse, where a smaller vehicle can then complete the delivery to your location. This approach maintains cost-effectiveness and ensures proper delivery. There is always a solution to a problem, if you know what the problem is!
If you have any concerns about potential delivery or collection restrictions, please contact our team via the button below. Our experts will evaluate the route to your facility and provide the appropriate advice.
Do you, your customer, or your supplier have the necessary equipment for loading and unloading the cargo? For example, is there a forklift at the destination, or is a tail lift required? If the packaging is oversized, a tail lift might not suffice, and a Hiab may be needed. Providing this information is crucial for obtaining accurate quotes and ensuring smooth logistics.
If such details are not provided during the enquiry or booking process, it may lead to delays and additional charges. Your Freight Forwarder should be knowledgeable about the restrictions of different vehicle types and advise accordingly. For instance, if your package is 2.1 metres long and your customer lacks the necessary equipment, a tail lift alone will not be sufficient due to health and safety regulations. A tail lift is typically limited to loads up to 2 metres long and 1000kgs, so alternative methods must be considered.
If you are unsure about equipment needed for loading/unloading, just contact one of the team via the button below.
Do you, your customer, or your supplier have preferred or strict times for collection or delivery? Is your warehouse operational 24/7? Typically, deliveries are made during local working hours, from 9 am to 5 pm, but you can specify a time and date outside these hours if needed. Note that such requests may incur additional charges. Freight-365 are experienced when arranging schedules using customers own online portals to adhere with specific SOPs.
Do you prefer AM or PM collection/delivery slots? Does your warehouse team have preferred delivery days or reduced hours on specific days? Are there seasonal holidays to consider, such as the European Summer Shutdown in August? Freight-365 can tailor options to meet your specific needs, but we need to be informed of these details in advance.
If you have any timing preferences or requirements, please ensure your Freight Forwarder is aware so they can arrange the services accordingly.
Being aware of your warehouse storage capacity and the frequency of deliveries that can be accepted on the same day can help you improve efficiency whilst remaining cost effective. Ensure you inform your Freight Forwarder about this information especially when dealing with multiple or large shipments. Our expertise in Warehousing and Distribution allows us to provide efficient solutions, thanks to our access to facilities in all major port locations globally.
Knowing these details in advance benefits both cost management and operational efficiency. For instance, if a large stock order is needed and you have 10 containers ready in India, and you book it all at once, it will likely arrive on the same vessel and be offloaded at the same time, therefore, it’s important to consider the volume of containers you can accept before the free time period allocated by the port expires. Freight-365 can organise staggered deliveries across multiple locations to alleviate short term busy periods upon arrival or select alternative services to stagger arrival of cargo at the UK port. We can arrange short-term & long-term storage off port to avoid expensive storage charges or rework your cargo to meet specific requirements and deliver it directly to your clients at multiple locations. Additionally, we can handle carton labelling and documentation removal to protect your supplier information, ensuring your shipment arrives in optimal condition.
If you want to know more or discuss the options for your shipment, we can arrange all of this for you, feel free to contact one of our expert team via the button below.
For international shipping, you must provide a commodity code (HS code) to classify your goods. This code, which will be declared on your customs entry, determines the rate of duty and import VAT. It’s essential to note that while your Freight Forwarder can assist and advise on the process, they cannot provide the commodity code. If an incorrect code leads to issues, the responsibility will fall on you.
For guidance on finding the correct commodity code, visit the Trade Tariff Portal on the government’s website: Trade Tariff Portal.
Additionally, you should inform your Freight Forwarder if your goods are classified as ‘Awkward Cargo.’ Key considerations include:
Temperature Requirements: Does the cargo need refrigeration or an ambient temperature range?
Dangerous Goods (DG): Is the cargo classified as dangerous and does it require a Material Safety Data Sheet (MSDS)?
Oversized Cargo: Is the cargo oversized? If your shipment cannot be packed on a pallet measuring 120x100cms, or 120x80cms (LxW) it could be considered “Oversized”. Equally, if your cargo cannot fit inside the container due to height it could be considered “oversized” and require some extra attention to move it safely.
Special Categories: Are you shipping tropical woods or pharmaceutical products requiring temperature-controlled shipping or cryostorage or live products such as fish or plants?
Providing this information is crucial for customs clearance and arranging your shipment effectively.
If you are unsure about the classification of your cargo for international imports and exports, don’t hesitate to contact one of our Operations Experts for assistance.
IS IT FCL OR LCL?
It’s crucial to determine whether your shipment will be Less than a Container Load (LCL) or a Full Container Load (FCL). If you’re only shipping a few pallets, LCL is usually the way to go. But what happens if your cargo consists of Dangerous Goods (DG)? For DG LCL shipments, you may face delays because all DG cargo must be pre-advised and accepted by the Shipping Line and you must also take into consideration compatibility issues with other cargo potentially loaded in the same container. This can be both expensive and time-consuming. In such cases, would opting for an FCL be more efficient? In most cases, when considering time, FCL should be given serious consideration, even if only moving small volumes of DG by sea.
Additionally, when the number of pallets you’re shipping increases, choosing an FCL might be more cost-effective and quicker. The key is to understand container sizes and how many pallets each can accommodate. At Freight-365, we’re here to help you make these decisions. Explore our useful guides below for more information. Or alternatively, contact our dedicated team to take advantage of our load planning software, prior to arranging palletisation with your supplier or customer, and maximise your available space. We have saved companies tens of thousands of pounds with this useful tool.
dimensions (DIMS) & PACKAGING
LCL SEA FREIGHT
In sea freight, shipping costs are based on either the weight or the volume of your cargo, whichever is higher. This is calculated using a W/M (weight/measure) formula where you pay based on either the weight in kilograms (kg) or the space your cargo occupies in cubic metres (CBM). Typically, sea freight charges are calculated in USD for imports and GBP for exports.
What is the Ratio?
The commonly used volume-to-weight ratio in sea freight is 1 cubic meter (CBM) = 1000 kilograms (kg). This means that when determining shipping costs, if the Total Gross Weight (TGW) exceeds the volume (in CBM), the rate is calculated based on the weight. Conversely, if the volume exceeds the TGW, the cost will be based on the volume.
Example 1: You have a shipment with a volume of 3 CBM and a total gross weight of 2,000 kg.
Since 3 CBM can accommodate up to 3,000 kg (using the ratio 1 CBM = 1000 kg), but your shipment weighs 2,000 kg, the freight rate will be based on the volume (3 CBM), as the volume exceeds the weight.
Freight rate (W/M) x 3.00 = the freight cost
Example 2: You have a shipment with a volume of 4 CBM and a total gross weight of 5,000 kg.
According to the volume ratio (1 CBM = 1,000 kg), 4 CBM can hold up to 4,000 kg. However, your shipment’s weight is 5,000 kg, which exceeds the volume capacity. Therefore, the rate will be based on the weight (5,000 kg), as it surpasses the volume.
Freight rate (W/M) x 5.00 = the freight cost
Example 3: A shipment has a volume of 2.2 CBM and weighs 1,500 kg.
The volume can hold up to 2,200 kg (since 1 CBM = 1,000 kg), but the shipment weighs only 1,500 kg. In this case, the freight rate will be calculated based on the volume (2.2 CBM), as it is greater than the weight.
Freight rate (W/M) x 2.20 = the freight cost
Clarification
In summary, the higher of the two—weight or volume—will determine the rate. By understanding this ratio, you can more accurately estimate shipping costs and optimise your LCL shipment strategy.
How do I work out my pallets CBM?
To determine the cubic metre (CBM) of a pallet, use the following formula:
CBM = Length (m) × Width (m) × Height (m)
For example, if you have a pallet measuring 120 cm (L) × 100 cm (W) × 135 cm (H):
CBM = 1.20 × 1.00 × 1.35 = 1.62 CBM
If the gross weight of this pallet is 250 kg, the total shipment specification would be:
1 Pallet @ 250 kg / 1.62 CBM
Since the volume of 1.62 CBM is greater than the weight of 250 kg, your freight cost will be based on the volume. The cost calculation would be as follows:
Freight Rate × 1.62 CBM
For example, if the freight rate is $50.00 per W/M, the total cost would be:
$50.00 × 1.62 = $81.00 USD
Alternatively, use our online calculator to get an accurate result by entering your pallet’s dimensions and weight.
For accurate shipping costs, ensure you provide the following information:
Dimensions: Length × Width × Height (in metres or centimetres)
Total Gross Weight: Including packaging materials, in kilograms (kg)
When planning for sea freight, knowing the exact volume of your cargo is crucial. This helps you maximize container space while controlling costs.
Since Less than Container Load (LCL) shipments involve sharing container space with other shipments, it’s essential to pack your cargo efficiently. To optimise loading and minimise empty space, cargo should ideally be packed on a pallet for easier handling and securely wrapped to prevent movement during transit.
Pallet stacking considerations:
For stronger cargo, build pallets with dimensions 120 cm (L) × 100 cm (W) × 132 cm (H) to allow stacking. This way, another pallet can be placed on top, maximizing space.
If your cargo is not strong enough to support stacking, inform your freight forwarder and request a “NON-STACK” rate. This ensures greater protection, but keep in mind, you will be charged for the space above the pallet which has to remain empty.
A stackable pallet must have a flat, stable top.
Example:
If you are shipping 120 boxes, each measuring 40 cm × 33 cm × 39 cm, we recommend stacking up to 27 boxes on a standard UK pallet. The final wrapped pallet dimensions would be approximately:
4 pallets at 120 cm (L) × 100 cm (W) × 132 cm (H)
1 pallet containing 12 boxes at 120 cm (L) × 100 cm (W) × 93 cm (H)
Properly packing your pallets ensures safety during transit and maximises the use of container space, reducing costs.
Proper packaging is essential, cargo may travel over 5000 miles during a long period of time whilst encountering adverse weather conditions causing unstable seas through fluctuating temperatures and humidities. It will undergo multiple forms of transport and be handled several times before resting at the final delivery point. Ensure your cargo is securely wrapped or crated to prevent damage, theft or pilferage during transit. Poor packaging could lead to additional costs for repacking causing delays and can lead to loss of product and perhaps most importantly invalidate insurance.
Ensure your goods are properly marked for fragility or specific handling requirements. While DIY packaging might seem cost-effective, professional packaging often prevents costly damage. Freight-365 partners with trusted global packaging services to ensure your cargo arrives safely.
Understanding whether your goods are stackable or not can significantly impact the cost of your shipment.
The price of your shipment is determined by either the weight of your goods or the space they occupy—whichever is greater. Therefore, the stackability of your cargo plays a crucial role in cost management.
Stackable vs. Non-Stackable
Non-Stack
Cargo that cannot have other items stacked on top. Clearly state this to avoid confusion and potential mishandling. Consider all quotes are for stackable cargo unless specified otherwise.
Stackable
Cargo that cannot have other items stacked on top. Clearly state this to avoid confusion and potential mishandling. Consider all quotes are for stackable cargo unless specified otherwise.
Top Stow
Cargo that can be loaded on top of other cargo but cannot have items stacked above it. This option may offer better rates but carries risk, because it’s a request and will depend on compatibility of other cargo during the loading process.
In summary, stackable cargo tends to be more cost-effective as it maximises space utilisation. Ensuring that your goods are appropriately packaged and crated can help you take advantage of these savings.
If you need assistance with calculating your cargo’s dimensions or understanding packaging requirements, contact our team for expert guidance.
FCL SEA FREIGHT
When loading a container for sea freight, understanding both weight and dimensions is critical to maximising space and minimising costs. The dimensions of your cargo determine how efficiently you can use the container’s volume, while the weight influences how much freight the container can safely carry. Both weight & volume are finite restrictions and balancing these factors ensures that you optimise available space without exceeding weight limits, which can result in fines, delays, or cargo loss/damage.
Weight plays a crucial role because each container has a maximum payload capacity. If the combined weight of the cargo exceeds this limit, the container could be overloaded, leading to safety concerns and potential penalties. On the other hand, if the container is significantly underweight, you may be paying for unused space. It’s essential to consider the Total Gross Weight (TGW) of your cargo to avoid unnecessary charges while fully utilising the container’s weight allowance.
Dimensions are equally important as they dictate how much cargo can physically fit inside the container. Careful attention to the size and shape of your packages, pallets, and crates allows for better organisation, helping you load more cargo without wasting space. For example, stacking compatible pallets or designing packaging that takes up minimal space ensures that you’re maximising the container’s volume. Overly large or irregularly shaped items might result in unused gaps, which translates to inefficiency and higher shipping costs.
By carefully coordinating both weight and dimensions, shippers can achieve the best possible balance between capacity and cost. Proper planning allows you to make the most of the available container space, ultimately improving efficiency, reducing costs, and ensuring the safe transport of goods.
To effectively plan the loading of your container, speak to one of our expert team who can effectively plan your load and ensure you have the appropriate equipment. It’s essential to know the total volume and weight of your shipment as it helps guarantee that the right container is selected for loading, maximising the use of available space and avoiding unnecessary costs—no one wants to pay for shipping fresh air. Additionally, if the wrong container is delivered to the site, cancellation fees can be expensive, leading to delays in your shipping schedule and potentially causing late deliveries.
Examples of How to Maximise Container Space for Sea Freight:
20-foot Container: A 20-foot container is ideal for heavier, denser cargo due to its weight capacity, though it has less volume than larger containers. To maximise space in a 20-foot container, focus on stacking evenly shaped and compact items, such as pallets with identical dimensions or small machinery. For example, if you’re shipping 10 pallets that measure 120 cm (L) × 100 cm (W) × 117 cm (H), ensure they are stacked tightly and securely, leaving no gaps between them enabling you to stack. For non-stack cargo, you have the ability to fill pallets up to 235cm in height.
40-foot Container: A 40-foot container offers nearly double the volume of a 20-foot container but the same weight capacity, making it more suitable for lighter, bulkier cargo. For optimal use, items like furniture, textiles, or consumer goods that take up more space without being too heavy can be packed densely. For instance, if you’re shipping 50 boxes measuring 100 cm × 50 cm × 50 cm, stack them in layers to fully utilise both the floor space and the container’s height. Properly securing the cargo will also prevent damage and shifting during transit.
High Cube Container: A high cube container provides extra height, making it perfect for tall or stackable items. This is ideal when shipping lightweight but large items like household goods, electronics, or modular equipment. For example, you could stack items up to 2.65 meters high, ensuring they are packed tightly together to eliminate wasted vertical space.
Mixed Cargo: When shipping mixed cargo, organising items by size and weight is key. Heavier items should be placed at the bottom, with lighter or more delicate items stacked on top. For example, if you’re shipping a combination of pallets and loose boxes, place the pallets first to create a stable base, then fill the remaining gaps with smaller boxes to avoid unused space.
In each case, strategic packing and an accurate understanding of both the weight and volume of your shipment are vital to maximising the available space and minimising shipping costs.
Proper packaging is essential, as cargo may travel over 5000 miles over a long period of time in adverse weather conditions causing fluctuating temperatures and humidity sailing across unstable seas. Ensure your cargo is securely wrapped or crated to prevent damage during transit. Poor packaging could lead to additional costs for repacking before retails sale and can lead to loss of product and most importantly, invalidate insurance.
Ensure your goods are properly marked for fragility or specific handling requirements. While DIY packaging might seem cost-effective, professional packaging often prevents costly damage. Freight-365 partners with trusted global packaging services to ensure your cargo arrives safely.
A helpful hint for ‘Full Load Cargo’
When placing an order, it’s important to consider the size of the outer cartons that will contain your goods. Even a small adjustment can significantly impact how much stock you can fit into a container. Additionally, think about whether to use pallets or pack loose cartons at the factory. While pallets make loading and unloading faster compared to handling loose cargo manually, they also take up valuable space inside the container. Or just be sensible and let us do it for you through the power of technology.
Understanding whether your goods are stackable or not can significantly impact the cost of your shipment due to shipping dead space.
The price of your shipment is determined by either the weight of your goods or the space they occupy—whichever is greater. Therefore, the stackability of your cargo plays a crucial role in cost management when planning the load of your container.
Stackable vs. Non-Stackable
Non-Stack
Cargo that cannot have other items stacked on top. Clearly state this to avoid confusion and potential mishandling. Most quotes are for stackable cargo unless specified otherwise.
Stackable
Cargo that can have items stacked on top. This often results in lower shipping costs but may lead to damage if not handled carefully.
Top Stow
Cargo that can have other items loaded on top of it but cannot have items stacked above it. This option may offer better rates but carries risks related to the condition of the cargo below.
In summary, stackable cargo tends to be more cost-effective as it maximises space utilisation. Ensuring that your goods are appropriately packaged and crated can help you take advantage of these savings.
If you need assistance with calculating your cargo’s dimensions or understanding packaging requirements or would like us to run your cargo’s details through our load planning software, contact our team for expert guidance. All we need is the commercial invoice and packing list of your finalised order, prior to arranging the shipper to palletise.
INCOTERMS
What are Incoterms?
Incoterms® (International Commercial Terms) are a set of standardised rules developed by the International Chamber of Commerce (ICC) to define the responsibilities of buyers and sellers in international trade. These rules clarify who is responsible for various aspects of the shipping process, including transportation, insurance, and customs duties, as well as when the risk of loss or damage to the goods transfers from the seller to the buyer.
Using Incoterms® is essential in international trade because they provide a common language that reduces the potential for misunderstandings and disputes between trading partners. By clearly outlining the obligations of each party, Incoterms® help ensure that all aspects of the shipping process are understood and agreed upon, from the point of origin to the final destination. This standardisation is crucial for smooth and efficient global trade, as it helps businesses manage risks, allocate costs accurately, and fulfil contractual obligations effectively.
Whether you’re dealing with the purchase of goods, arranging transportation, or handling customs procedures, Incoterms® offer a clear and reliable framework that simplifies international transactions and provides peace of mind for all parties involved.
The seller makes the goods available at their premises, or at another named place. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used while making an initial quotation for the sale of goods without any costs included.
EXW means that a buyer incurs the risks for bringing the goods to their final destination. Either the seller does not load the goods on collecting vehicles and does not clear them for export, or if the seller does load the goods, they do so at buyer’s risk and cost. If the parties agree that the seller should be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale.
There is no obligation for the seller to make a contract of carriage, but there is also no obligation for the buyer to arrange one either – the buyer may sell the goods on to their own customer for collection from the original seller’s warehouse. However, in common practice the buyer arranges the collection of the freight from the designated location, and is responsible for clearing the goods through Customs. The buyer is also responsible for completing all the export documentation, although the seller does have an obligation to obtain information and documents at the buyer’s request and cost.
These documentary requirements may result in two principal issues.
Firstly, the stipulation for the buyer to complete the export declaration can be an issue in certain jurisdictions (not least the European Union) where the customs regulations require the declarant to be either an individual or corporation resident within the jurisdiction. If the buyer is based outside of the customs jurisdiction they will be unable to clear the goods for export, meaning that the goods may be declared in the name of the seller by the buyer, even though the export formalities are the buyer’s responsibility under the EXW term.
Secondly, most jurisdictions require companies to provide proof of export for tax purposes. In an EXW shipment, the buyer is under no obligation to provide such proof to the seller, or indeed to even export the goods. In a customs jurisdiction such as the European Union, this would leave the seller liable to a sales tax bill as if the goods were sold to a domestic customer. It is therefore of utmost importance that these matters are discussed with the buyer before the contract is agreed. It may well be that another Incoterm, such as FCA seller’s premises, may be more suitable, since this puts the onus for declaring the goods for export onto the seller, which provides for more control over the export process.
FCA can have two different meanings, each with varying levels of risk and cost for the buyer and seller. FCA (a) is used when the seller delivers the goods, cleared for export, at a named place which is their own premises.FCA (b) is used when the seller delivers the goods, cleared for export, at a named place which is not their premises. In both instances, the goods can be delivered to a carrier nominated by the buyer, or to another party nominated by the buyer.
In many respects this Incoterm has replaced FOB in modern usage, although the critical point at which the risk passes moves from loading aboard the vessel to the named place. The chosen place of delivery affects the obligations of loading and unloading the goods at that place.
If delivery occurs at the seller’s premises, or at any other location that is under the seller’s control, the seller is responsible for loading the goods on to the buyer’s carrier. However, if delivery occurs at any other place, the seller is deemed to have delivered the goods once their transport has arrived at the named place; the buyer is responsible for both unloading the goods and loading them onto their own carrier.
Specific rules for sea and inland waterway transport
The seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a barge) nominated by the buyer at the named port of shipment. The risk of loss of or damage to the goods passes when the goods are alongside the ship, and the buyer takes on responsibility for all costs from that moment onwards.
Specific rules for sea and inland waterway transport
The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel, and the buyer takes on responsibility for all costs from that moment onwards.
Specific rules for sea and inland waterway transport
The seller delivers the goods on board the vessel. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
Specific rules for sea and inland waterway transport
The same as CFR with the addition that the seller must also obtain minimum insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage.
CPT replaces the C&F (cost and freight) and CFR terms for all shipping modes outside of non-containerized seafreight.
Under CPT the seller pays for the carriage of goods up to the named place of destination.
However, the goods are considered to be delivered when the goods have been handed over to the first or main carrier, so that the risk transfers to buyer upon handing goods over to that carrier at the place of shipment in the country of Export.
The seller is responsible for origin costs including export clearance and freight costs for carriage to the named place of destination (either the final destination such as the buyer’s facilities or a port of destination. This has to be agreed to by seller and buyer, however).
If the buyer requires the seller to obtain insurance, the Incoterm CIP should be considered instead.
Similar to CPT with the exception that the seller is required to obtain minimum insurance for the goods while in transit.
The seller is deemed to have delivered when the goods are placed at the disposal of the buyer on the arriving means of transport and ready for unloading at the named place of destination.
Under DAP terms, the risk passes from seller to buyer from the point of destination mentioned in the contract of delivery.
Once goods are ready for shipment, the necessary packing is carried out by the seller at their own cost, so that the goods reach their final destination safely. All necessary legal formalities in the exporting country are completed by the seller at their own cost and risk to clear the goods for export.
After arrival of the goods in the country of destination, the customs clearance in the importing country needs to be completed by the buyer, e.g. import permit, documents required by customs, etc., including all customs duties and taxes.
Under DAP terms, all carriage expenses with any terminal expenses are paid by seller up to the agreed destination point. The necessary unloading cost at final destination has to be borne by buyer under DAP terms.
This Incoterm requires that the seller delivers the goods, unloaded, at the named place. The seller covers all the costs of transport (export fees, carriage, unloading from main carrier at destination port and destination port charges) and assumes all risk until arrival at the destination place.
The seller is responsible for delivering the goods to the named place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes. The seller is not responsible for unloading. This term is often used in place of the non-Incoterm “Free In Store (FIS)”. This term places the maximum obligations on the seller and minimum obligations on the buyer. No risk or responsibility is transferred to the buyer until delivery of the goods at the named place of destination.
The most important consideration for DDP terms is that the seller is responsible for clearing the goods through customs in the buyer’s country, including both paying the duties and taxes, and obtaining the necessary authorizations and registrations from the authorities in that country. Unless the rules and regulations in the buyer’s country are very well understood, DDP terms can be a very big risk both in terms of delays and in unforeseen extra costs, and should be used with caution.
Please find a downloadable chart below for Incoterms, explaining costs and responsibility
THE DEADLINE!
It’s all about the service. Understanding and clearly communicating your delivery deadlines is critical. It enables your Freight Forwarder to tailor their services and provide accurate quotes based on your needs.
Consider these scenarios:
Urgent Shipments: If you need your cargo from Delhi in 25 days, cost-effective full-load services may not be an option. Your Freight Forwarder might need to explore alternative modes of transport, such as air freight. Transit times can vary depending on the shipping line, which explains pricing disparities. While opting for faster, more reliable services may involve higher upfront costs, the long-term benefits include on-time cargo arrival and quicker sales, avoiding delays that could harm your reputation with clients due to late deliveries or broken promises.
Flexible Timelines: On the other hand, if you have a more flexible timeline, such as two months to deliver cargo from Delhi, your Freight Forwarder can choose more economical services. However, cheaper services often lack priority and may face delays due to transshipment or cargo rolling at origin. While these options are less reliable for urgent shipments, they offer significant cost savings if you have flexibility in your delivery schedule. Freight Forwarders should be aware of budget services and can leverage their unreliability to your advantage for cheaper shipping.
Every quote should align with your delivery deadline. Managing expectations regarding costs and service quality is key.
If planned correctly, slower services shouldn’t cause issues. The only person who may face challenges will be your Freight Forwarder. A competent Freight Forwarder minimises problems, even with slower services, by focusing on:
Service Reliability: Some companies offer less reliable services, and certain ports are prone to delays. These factors are often reflected in pricing, and an experienced Freight Forwarder can advise you on potential risks.
Handling Delays: While vehicle breakdowns or other unforeseen delays are out of your control, promptly informing your Freight Forwarder helps them arrange alternative solutions quickly.
There are a number of factors along your shipments journey that can cause issues, potential issues on each step, the steps of your Airfreight Cargo’s journey are as below:
With collection, what can go wrong and what can i do to reduce the risks?
Vehicle Capacity Issues: Ensure the vehicle is appropriately sized for your cargo. Provide accurate dimensions and weight to avoid issues and missed deadlines.
Vehicle Suitability: Confirm that the vehicle meets loading requirements, such as having a tail lift if necessary. Inform your Freight Forwarder of any access restrictions or special loading needs.
Late Delivery to Port: During peak periods, delays may occur. Your Freight Forwarder should anticipate and plan for these.
Check Weighing/Measuring Failures: Inaccurate weights and dimensions can lead to extra charges or delays. Use approved weighing methods and document measurements to contest incorrect charges
Customs Documentation Issues: Ensure all documents are accurate and complete. Send copies to the consignee for approval if necessary to avoid delays.
Customs Inspection Issues: Random customs inspections or documentation discrepancies can delay loading. Be prepared for this possibility.
Cargo Damage: Ensure your cargo is secure and safe to ship to avoid removal from the container or being stopped by carriers. Document and report any damage immediately.
Vessel Diversions: Vessels may be diverted due to weather, conflict, or other factors. While your Freight Forwarder will try to find alternative solutions, this often depends on the shipping line.
Indirect Services: Indirect routes may be cheaper but involve more handling and potential delays. Request direct services to reduce risk.
Check Weighing/Measuring at Destination: Though rare, accurate dimensions and weights can prevent unexpected charges, especially where road or rail network limits apply.
Customs Documentation Issues: Ensure that all customs documentation meets local requirements. Importers are responsible for knowing local regulations and preparing accordingly.
Cargo Screening: Additional screening at the destination is uncommon but possible, especially if documentation discrepancies arise.
Damage During Handling: Similar to export, document and report any damage immediately.
Delivery Failures: Ensure that delivery details, including access restrictions, are clear in advance. Incorrect addresses or last-minute changes can result in costly diversions and delays.
Proactive management of your shipment prevents many issues. Providing accurate information to your Freight Forwarder, maintaining regular communication, and thorough preparation help minimise risks. For any uncertainties or specific advice, reach out to Freight 365. We’re dedicated to building strong partnerships and ensuring smooth, efficient handling of your shipments.
OTHER CONSIDERTAIONS
What is ‘Awkward Cargo’?
There are several commodities or types of cargo that could be deemed as awkward. Oversized items requiring special equipment, dangerous goods or hazardous chemicals are more complex to handle.
For all information relating to awkward cargo, click the link below to be taken to our page dedicated to ‘Awkward Cargo’.
Global Holidays
Global holidays can disrupt freight services, increase demand, and drive up prices. Plan ahead by knowing when national holidays occur and their impact on peak shipping seasons. Click here for more information on peak season and holiday schedules.
Click the link below to be taken to our page dedicated to peak season and national holidays.
What’s up Doc?
Each country has unique documentation requirements, and navigating them can be complex. For comprehensive guidance on documentation, visit our documentation guide page.
For all documentation information, click the link below to be taken to our doc’s guide page. We will try pour best to make things clearer and assist.
What’s up Doc?
Freight transactions typically use US Dollars, British Pounds, or Euros, but local currencies may be preferred by suppliers.
We collaborate with Capitex, a leading currency exchange provider. Click here to visit our Capitex Partner Portal for more details.
What the Forex!
We work with one of the worlds leading Currency Exchange companies, Capitex. Click the logo below to enter our partner portal or view our partner page beneath.
