We have two changes in the 2020 incoterms

• DAT (Delivered at terminal) changes the name to DPU (Delivered at Place Unloaded)
• Incoterm FCA (Free Carrier) now allows the issuance of Bills of Lading before loading. The buyer may request a BL to be issued with the notation “on board”.

These changes include:

• The CIF (Cost, Insurance and Freight) and CIP (CARRIAGE AND INSURANCE PAID TO) present new standard provisions for insurance, although the level can be negotiated between the buyer and the seller.
• The FCA (Free Carrier), DAP (Delivered at Place), DPU (Delivered at Place Unloaded) and DDP (Delivery Duty Paid) now establish that, both the buyer and the seller, organize their own transport rather than using a third-party.

Incoterms EXW

• The obligations of the seller/exporter end when the goods are made available to the buyer/importer at his premises. At this point, the costs are passed on to the buyer; therefore, the seller is relieved of all responsibility, both for the loading of the goods and for the customs export formalities. It should be noted that the seller/exporter must deliver the goods properly packed, palletized and strapped.
• The term EXW implies minimum obligations; however, by not controlling the customs clearance, we must coordinate with the importer's Customs Agent to arrange the delivery that corresponds to the export.
• DUA, HBL, HAWB.

Incoterms FCA

• FCA is a very versatile term. We can use FCA Factory or FCA Terminal (port, airport, etc.)
• FCA Factory (local, vendor's warehouse) must be used for full loads (trailer or container). The seller must load the goods in transport, from that moment, the goods become the responsibility of the buyer. The term FCA Factory replaces perfectly the term EXW, because it solves the risks and problems that cause the seller.
• FCA Terminal (another place designated by the buyer) should be used only for fractional loads. The seller must only deliver the goods at the designated place. The unloading of the goods, their subsequent handling and consolidation in another transport are at the expense of the buyer.
• Now allows the issuance of Bills of Lading before loading. The buyer may request a BL to be issued with the notation “on board”.
• Now establish that, both the buyer and the seller, organize their own transport rather than using a third-party.

Incoterms FAS

• Delivery occurs in the country of origin when the seller leaves the goods at the harbor pier and with the export clearance already made. At that place, the responsibility for the damage or loss of the goods ends for the seller; therefore, the responsibility will be on the buyer. It does not include loading the goods on board the ship.

Incoterms FOB

• Delivery occurs in the country of origin, when the seller leaves the goods in the hold of the ship, loaded and stowed, and with the export documentation already done.

Incoterms CFR

• The main transport is paid by the seller; however, the risk on this shipment is the buyer. The buyer must be aware that the insurance of the goods is at his expense. Delivery occurs when the goods are placed on board the ship. Delivery is the same as FOB, with the substantial difference that with CFR the seller must contract for international transport and pay the freight.

Incoterms CIF

• The main transport is paid by the seller; however, in that stretch, the risk is the buyer. The insurance of the goods is paid by the seller who must place the buyer as the beneficiary. Delivery occurs when the goods are placed on board the ship.The seller is obliged to obtain insurance with minimum coverage in favour of the buyer; however, he may agree to other insurance coverage upon agreement with the buyer.
• Present new standard provisions for insurance, although the level can be negotiated between the buyer and the seller.

Incoterms CPT

• The main transport is paid by the seller; however, the risk is the buyer on this trip. If there are several carriers, payment is made when the goods are delivered to the 1st carrier at the point chosen by the seller, over which the buyer has no control.
• It must be specified in the contract if they want the risk to be transferred at a later stage.

Incoterms CIP

• The main transport is paid by the seller; however, the risk is the buyer on this trip. It is important for the buyer to be clear that the insurance of the goods is the responsibility of the seller, but that he assumes the responsibility from the moment the goods leave the country of origin until the moment of delivery to the main carrier. The seller must name the buyer as the beneficiary of the insurance.
• The seller is obligated to obtain insurance with maximum coverage in favor of the buyer; however, the seller may agree to other coverage upon agreement with the buyer. Like the CPT term, in the case of multiple carriers, it occurs when it is delivered to the 1st carrier at the point chosen by the seller over which the buyer has no control.
• It must be specified in the contract if they want the risk to be transferred at a later stage.
• Present new standard provisions for insurance, although the level can be negotiated between the buyer and the seller.

Incoterms DAP

• Delivery is made anywhere in the country of destination always by vehicle (DAP factory, DAP carrier, etc.) and without import customs clearance.
• Because the journey is responsibility of the seller, we do not recommend this INCOTERM in developing countries, as there is a real possibility of suffering any setback causing the costs to be very difficult to control.
• Now establish that, both the buyer and the seller, organize their own transport rather than using a third-party.

Incoterms DAT

• The delivery of the goods occurs in the country of destination without the import clearance at the agreed point of destination. This is the only Incoterms rule that obliges the seller to unload at destination. This Incoterms is designed for companies that want to control the logistic process from origin to destination due to the particularities of their business or goods, or where they have to perform the operation of the goods sold in the buyer's facilities.
• As with DAP, the journey is the responsibility of the seller; therefore, we do not recommend this Incoterms in countries with underdeveloped transport and telecommunication infrastructures, because there is a real possibility of suffering any setback causing expenses to be very difficult to control.

Incoterms DDP

• The delivery occurs anywhere in the country of destination always on vehicle (DDP factory, DDP carrier, etc.).
• Within the DDP price, tariffs and internal taxes are included.
• It is advisable to use DDP for low value goods where the transport used is Courier type.The aim is to provide a quick service to the customer who has an urgent need, such as sending a part for a machine that is not working.
• Now establish that, both the buyer and the seller, organize their own transport rather than using a third-party.

CONTAINERS

Dry

Dry Containers that apply to the following Loads: Industry, Agriculture, Automobiles

ADVANTAGES OF
MARITIME TRANSPORT

• Competitive Rates
• Volume and Cargo Capacity
• Transportable Materials
• Coverage and Insurance