Do you want to ship a container to another port? Then you need to be aware of different kinds of agreements that freight forwarders use. These are commonly known as Icoterms. The transport terms for shipping containers are listed below. Do you want to ship cargo overseas? Than alway’s contact different transport companies for a quote to get the best shipping rates.
Free Alongside Ship (FAS)
FAS means Free Alongside Ship and is usually followed by a named port of shipment, for example FAS Jacksonville. FAS means that the seller has to deliver the goods alongside the vessel as nominated by the buyer at the named port of shipment. The cost of transporting and delivering the goods alongside the nominated vessel is on account of the seller. The buyer assumes all risks & costs for transportation of the goods from that point onwards.
Free on Board (FOB)
FOB means Free On Board and is followed by the named port of shipment, for example FOB Los Angeles. As per this rule the seller clears the goods for export and delivers them on board the vessel nominated by the buyer at the named port of shipment. The risk of loss or damage to the goods is transferred to the buyer when the goods pass the ship’s rail. The buyer bears all costs and risks of the goods from that point onwards. It may be noted that the cost of loading under this rule is borne by the seller.
Cost and Freight (CFR) / C&F / CNF
CFR means Cost and Freight and is followed by a named port of destination, for example CFR Brisbane. Under CFR rule, the seller clears the goods for export and delivers them onboard the vessel at the nominated port of shipment. Seller bears the cost of freight to bring the goods to the named port of destination. But the risk of loss or damage to the goods is transferred to the buyer, from the moment the goods are loaded onto the vessel at the port of shipment. It may be noted here that the insurance cover for the transportation of goods is taken by the buyer.
Cost, Insurance, and Freight (CIF)
CIF means Cost, Insurance and Freight and is followed by a named port of destination, for example CIF Dallas. CIF is identical to CFR with the additional requirement that the seller purchases insurance against the buyer’s risk of loss or damage to goods during carriage. Under CIF the seller clears the goods for export and delivers them onboard the vessel at the port of shipment. Seller bears the cost of freight and insurance to the named port of destination. Buyer is responsible for all costs associated with unloading the goods and fulfilling necessary import formalities for releasing the goods at the named port of destination. It is to be noted that under CIF the seller is required to obtain minimum insurance cover. If more insurance protection is needed by the buyer, it has to be agreed by the seller through incorporating explicit terms in the sales contract. Otherwise the buyer has to take additional insurance coverage from P&I Club on his own account. This Incoterm 2000 is very popular for shipping containers like FCL shipping.
Container Shipping Services
Do you want to know more about international transportation? Contact an expert like containershippingservice.com to get detailed information about different kinds of cargo and transport options. They can provide you with the best prices and answer your questions.
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