These 4 Incoterms are reserved for when both starting point and ending point of main carriage are both ports, meaning sea or water carriage only.
THE CASE OF CONTAINERISED TRAFFIC
NOT FOR CONTAINERS & NOT MULTIMODAL
The ICC strongly recommends not using these incoterms for any trade using or consisting of container traffic.
WHY NOT CONTAINERS ?
By definition containers are almost always used for multimodal transport as they allow easy transfer from one type of transport to another.
SECURITY INSPECTION AND SEAL
When goods are placed inside a container, they may be inspected for security and container is sealed when closed at loading. Seal will only be removed when container will be opened again at delivery (this to certify container has not been opened during transit). However, this also means that should any damage occur inside the container during transit, this may only be perceived once container is opened and not during handling.
RISK MANAGEMENT - TERMINAL HANDLING FOR CONTAINERS
There may be 10 movements/operations or more depending on how many times the container is moved at the wharf post acceptance.
1 – Export Warehouse to Container Packing Station (CPS) (2 movements (upload + offload))
2 – CPS to Forwarder (2 movements (upload + offload))
3 – Forwarder to Container Park (2 movements)
4 - Container Park to Wharf (2 movements)
5 – Wharf to Ship (2 movements)
Multiply by two for terminal handling at arrival!!!
Departure Incoterms
FAS - Free Alongside Ship
FOB - Free On Board
Arrival Incoterms
CFR - Cost And Freight
CIF - Cost Insurance And Freight
THE CASE OF CONTAINERISED TRAFFIC
NOT FOR CONTAINERS & NOT MULTIMODAL
The ICC strongly recommends not using these incoterms for any trade using or consisting of container traffic.
WHY NOT CONTAINERS ?
By definition containers are almost always used for multimodal transport as they allow easy transfer from one type of transport to another.
SECURITY INSPECTION AND SEAL
When goods are placed inside a container, they may be inspected for security and container is sealed when closed at loading. Seal will only be removed when container will be opened again at delivery (this to certify container has not been opened during transit). However, this also means that should any damage occur inside the container during transit, this may only be perceived once container is opened and not during handling.
RISK MANAGEMENT - TERMINAL HANDLING FOR CONTAINERS
There may be 10 movements/operations or more depending on how many times the container is moved at the wharf post acceptance.
1 – Export Warehouse to Container Packing Station (CPS) (2 movements (upload + offload))
2 – CPS to Forwarder (2 movements (upload + offload))
3 – Forwarder to Container Park (2 movements)
4 - Container Park to Wharf (2 movements)
5 – Wharf to Ship (2 movements)
Multiply by two for terminal handling at arrival!!!
Departure Incoterms
FAS - Free Alongside Ship
FOB - Free On Board
Arrival Incoterms
CFR - Cost And Freight
CIF - Cost Insurance And Freight