Business
Xxxxxxxxxxxxx
IBM-416-Chapter14-LogisticsIncoterms1.pptInternational
Logistics & Incoterms
Load ‘em Up & Move ‘em Out
*
Incoterms 2010
Exporter
Importer
Product Cost &
Export Packing
Air or
Ocean
Freight
Loading on
Vessel or
Aircraft
Pier
Delivery
Inland Freight
& Loading
Consular Fees//
Export License/
Export Clearance
Forwarder’s
Fees
Insurance
Unloading
Vessel or
Aircraft
Import Duty/
VAT
Inland
Freight
Customs Broker
Fees/
Import License
Total
Product
Cost
Ex Works
FCA
FAS
FOB
CFR
CPT
CIF
CIP
DAT
DAP
DDP
>
>
>
>
*
Incoterms 2010 - Defined
- EXW= Ex Works + Named Place of Departure
- FCA = Free Carrier + Named Place of Departure
- FAS = Free Alongside Ship + Named Place of Departure
- FOB = Free on Board + Named Port of Shipment
- CFR = Cost & Freight + Named Port of Destination
- CPT = Carriage Paid To + Named Port of Destination
- CIF = Cost, Insurance & Freight + Named Port of Destination
- CIP = Carriage & Insurance Paid To + Named Port of Destination
- DAT = Delivered At Terminal + Named terminal at port or Destination
- DAP = Delivered at Place + Named Place of Destination
- DDP== Delivered Duty Paid + Named Place of Destination
Note: Each Place or Port should be identified with the City, State, & Country
*
Logistics Service Providers
- Freight Forwarder –
- Travel Agent for Freight
- Consolidator –
- Gathers freight & packs containers
- Customs House Broker –
- Prepares documents for import customs clearance
- Bonded Warehouse –
- Insured and sealed warehouse available for product storage or manipulation
*
Logistics Service Providers
- FTZ – Foreign Trade Zone
- Industrial park that operates under local governance but is outside of Customs Jurisdiction
- Insurance Providers –
- Insure cargo & receivables
- Marine Insurance – covers all types of Int’l freight methods for losses incurred during shipping
*
Shipping Terminology
- LCL Shipment –
- Less than Container Load = loose cargo or pallets
- FCL Shipment -
- Full Container Load
- 45’, 40’(20 pallets), 40’HQ, 20’ (10 pallets)
- Standard & Refrigerated
- Seal – lock & seal that closes the container
- Consolidated Shipment –
- Shipment of our goods going to different customers OR
- Shipment of mixed goods going to 1 customer
*
What can go wrong….
*
16.bin
17.bin
Will go wrong….
*
18.bin
19.bin
Ooops…missed
*
20.bin
Methods for Shipping
- Ocean Freight
- LCL & FCL Shipments
- Low Cost per unit (unless very small shipment)
- Cost based on weight & commodity
- Slow transit time (faster routes now available).
- Higher risk of damage or pilferage
*
Methods for Shipping
- Air Freight
- Quick Transit Time
- Space limitation based on flights
- High Cost (per unit)
- Cost based on actual weight or volume weight whichever is greater
- Higher fees for Hazardous Materials
- Consolidation rates available
- Lower rate of damage or pilferage
*
Methods for Shipping
- Ground
- Rail & Truck
- Unless shipping within continent used as part of Multi-modal transportation route.
- Courier Services
- Small Package
- Quickest Delivery – next day to 2 or 3 day
- Highest cost
- Great for sensitive materials
*
