Explore the importance of Incoterms in international trade and their impact on the European logistics market. Incoterms is an international standard on the rights and obligations of the buyer and seller in the international transportation of goods.
Incoterms, or International Commercial Terms, play a crucial role in defining the responsibilities and liabilities of buyers and sellers in global trade. In the European logistics market, understanding and correctly applying Incoterms is essential for seamless and cost-effective international transactions. These terms, including EXW, FOB, CIF and DAP, govern everything from the point of origin to the final destination of the goods. For example, EXW and FOB give buyers more control over the transportation process, while other terms imply that sellers take charge. Interestingly, CIF prices are often quoted initially, but there is flexibility to offer prices based on different terms. Neele-Vat, with its extensive experience in international logistics, recommends choosing EXW or FOB, allowing maximum control while using our expertise to manage transportation to your specified destination. We will elaborate on each Incoterm and offer valuable insights for navigating the European logistics landscape.
FAS - Freight-free alongside ship (agreed port of shipment)
The ICC Incoterms® rule Free Alongside Ship (FAS) requires the seller to fulfill its delivery obligations by delivering the goods in the agreed condition and on time alongside the vessel designated by the buyer. If the goods are in a container, the seller usually transfers the goods at a terminal, not alongside a ship. In such situations, it is better to use the Incoterms® Free Carrier (FCA) rule.
FAS is a maritime delivery condition and is not suitable for container shipping.
Characteristics:
Delivery: the seller must deliver the goods alongside the vessel designated by the buyer, at the loading place at the agreed port of shipment, in a manner customary for that port.
Transport risk: the risk of damage to or loss of the goods during transport shall be borne by the buyer as of delivery. Prior to delivery, the seller shall bear this risk.
Transportation costs: the costs of transportation shall be borne by the buyer from delivery onwards. The parties are strongly advised to indicate as clearly as possible the point of loading at the agreed port of shipment, as the THC (Terminal Handling Charges) for this point are for the seller's account.
Customs formalities: the seller takes care of all customs formalities arising from the export. He shall also bear the resulting costs, duties and taxes. Customs formalities, costs, duties and taxes shall be borne by the buyer upon importation into the country of destination.
Transportation insurance: neither party is required to obtain insurance for the goods.
Addition place of delivery: the delivery condition should always add where the transfer of the goods takes place. In FAS, this is indicated by: ... agreed port of shipment (... named port of shipment).
At Neele-Vat, we provide efficient and reliable handling of your ocean freight. We offer secure shipping, smart cargo management and customized logistics solutions. Whether you have a one-time shipment or regular shipments, we have the right expertise. Request a quote today and discover the benefits of our ocean freight services!
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