incoreterms
Standard set of terminology, created by the International Chamber of Commerce (ICC),used universally, defining the key parts of freight forwarding
- Determine ownership or transfer title to the goods, nor evoke payment terms.
- Apply to service contracts, nor define contractual rights or obligations (except for delivery) or breach of contract remedies.
- Protect parties from their own risk or loss, nor cover the goods before or after delivery.
- Specify details of the transfer, transport, and delivery of the goods. Container loading is NOT considered packaging, and must be addressed in the sales contract.
- Note: Incoterms are not law and there is NO default Incoterm!
EXW
Ex Works: Seller delivers (without loading) the goods at disposal of buyer at seller's premises. Long held as the most preferable term for those new-to-export because it represents the minimum liability to the seller. On these routed transactions, the buyer has limited obligation to provide export information to the seller.
FCA
Free Carrier: Seller delivers the goods to the carrier and may be responsible for clearing the goods for export (filing the EEI). More realistic than EXW because it includes loading at pick-up, which is commonly expected, and sellers are more concerned about export violations.
FAS
Free Alongside Ship: Risk passes to buyer, including payment of all transportation and insurance costs, once delivered alongside the ship (realistically at named port terminal) by the seller. The export clearance obligation rests with the seller.
FOB
Free On Board: Risk passes to buyer, including payment of all transportation and insurance costs, once delivered on board the ship by the seller. A step further than FAS.
DAT
Delivered at Terminal: Seller bears cost, risk and responsibility until goods are unloaded (delivered) at named quay, warehouse, yard, or terminal at destination. Demurrage or detention charges may apply to seller. Seller clears goods for export, not import. DAT replaces DEQ, DES.
CIF
Cost, Insurance and Freight: Risk passes to buyer when delivered on board the ship. Seller arranges and pays cost, freight and insurance to destination port. Adds insurance costs to CFR.
DAP
Delivered at Place: Seller bears cost, risk and responsibility for goods until made available to buyer at named place of destination. Seller clears goods for export, not import. DAP replaces DAF, DDU.
DDP
Delivered Duty Paid: Seller bears cost, risk and responsibility for cleared goods at named place of destination at buyers disposal. Buyer is responsible for unloading. Seller is responsible for import clearance, duties and taxes so buyer is not "importer of record".
CPT
Carriage Paid To: Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer, but seller must pay cost of carriage to the named place of destination.
CIP
Carriage and Insurance Paid To: Seller delivers goods to the carrier at an agreed place, shifting risk to the buyer, but seller pays carriage and insurance to the named place of destination.
CFR
Cost and Freight: Seller delivers goods and risk passes to buyer when on board the vessel. Seller arranges and pays cost and freight to the named destination port. A step further than FOB.
CLASSIFICATION OF DANGEROUS GOODS
The International Maritime Dangerous Goods (IMDG) Code was developed as a uniform international code for the transport of dangerous goods by sea covering such matters as packing, container traffic and stowage, with particular reference to the segregation of incompatible substances.
The Carriage of dangerous goods and marine pollutants in sea-going ships is respectively regulated in the International Convention for the Safety of the Life at Sea (SOLAS) and the International Convention for the Prevention of pollution from Ships (MARPOL).
Relevant parts of both SOLAS and MARPOL have been worked out in great detail and are included in the International Maritime Dangerous Goods (IMDG) Code, thus making this Code the legal instrument for maritime transport of dangerous goods and marine pollutants. As of 1st January 2004, the IMDG Code has become a mandatory requirement.
For all modes of transport (sea, air, rail, road and inland waterways) the classification (grouping) of dangerous goods, by type of risk involved, has been drawn up by the UNITED NATIONS Committee of Experts on the Transport of Dangerous Goods (UN).
Class 1: Explosives
Subclass 1.1: Explosives with a mass explosion hazard
Consists of explosives that have a mass explosion hazard. A mass explosion is one which affects almost the entire load instantaneously.
Subclass 1.2: Explosives with a severe projection hazard
Consists of explosives that have a projection hazard but not a mass explosion hazard.
Subclass 1.3: Explosives with a fire
Consists of explosives that have a fire hazard and either a minor blast hazard or a minor projection hazard or both but not a mass explosion hazard.
Subclass 1.4: Minor fire or projection hazard
Consists of explosives that present a minor explosion hazard. The explosive effects are largely confined to the package and no projection of fragments of appreciable size or range is to be expected. An external fire must not cause virtually instantaneous explosion of almost the entire contents of the package.
Subclass 1.5: An insensitive substance with a mass explosion hazard
Consists of very insensitive explosives with a mass explosion hazard (explosion similar to 1.1). This division is comprised of substances which have a mass explosion hazard but are so insensitive that there is very little probability of initiation or of transition from burning to detonation under normal conditions of transport.
Subclass 1.6: Extremely insensitive articles
Consists of extremely insensitive articles which do not have a mass explosive hazard. This division is comprised of articles which contain only extremely insensitive detonating substances and which demonstrate a negligible probability of accidental initiation or propagation.
Class 2: Gases
Subclass 2.1: Flammable Gas
Consists of extremely insensitive articles which do not have a mass explosive hazard. This division is comprised of articles which contain only extremely insensitive detonating substances and which demonstrate a negligible probability of accidental initiation or propagation.
Subclass 2.2: Non-Flammable Gases
Consists of extremely insensitive articles which do not have a mass explosive hazard. This division is comprised of articles which contain only extremely insensitive detonating substances and which demonstrate a negligible probability of accidental initiation or propagation.
Subclass 2.2: Non-Flammable Gases
Consists of extremely insensitive articles which do not have a mass explosive hazard. This division is comprised of articles which contain only extremely insensitive detonating substances and which demonstrate a negligible probability of accidental initiation or propagation.
Class 3: Flammable Liquids
Subclass 2.2: Non-Flammable Gases
Consists of extremely insensitive articles which do not have a mass explosive hazard. This division is comprised of articles which contain only extremely insensitive detonating substances and which demonstrate a negligible probability of accidental initiation or propagation.
Class 4: Flammable solids or substances
Subclass 4.1: Flammable solids
For the purpose of this Code, flammable solids means readily combustible solids and solids which may causefire through friction.
Subclass 4.1: Self-reactive substances
Self-reactive substances are thermally unstable substances liable to undergo a strongly exothermic decomposition even without participation of oxygen (air).
Subclass 4.1: Solid desensitized explosives
Solid desensitized explosives are explosive substances which are wetted with water or alcohols or are diluted with other substances to form a homogeneous solid mixture to suppress their explosive properties.
Subclass 4.1: Polymerizing substances and mixtures (stabilized)
Polymerizing substances are substances which, without stabilization, are liable to undergo a strongly exothermic reaction resulting in the formation of larger molecules or resulting in the formation of polymers under conditions normally encountered in transport. Explosives included under class 1 however deactivated or substances specially included under this class by the producer.
Subclass 4.2: Substances liable to spontaneous combustion
Subclass 4.2: Comprises
1 Pyrophoric substances, which are substances, including mixtures and solutions (liquid or solid), which, even in small quantities, ignite within 5 minutes of coming into contact with air. These substances are the most liable to spontaneous combustion; and 2 Self-heating substances, which are substances, other than pyrophoric substances, which, in contact with air without energy supply, are liable to self-heating. These substances will ignite only when in large amounts (kilograms) and after long periods of time (hours or days).
Subclass 4.3: Substances which, in contact with water, emit flammable gases
For the purpose of this Code, the substances in this class are either liquids or solids which, by interaction with water, are liable to become spontaneously flammable or to give off flammable gases in dangerous quantities.
Class 5: Oxidizing substances and organic peroxides
Subclass 5.1: Oxidizing substances
Substances which, while in themselves not necessarily combustible, may, generally by yielding oxygen,cause, or contribute to, the combustion of other material. Such substances may be contained in an article.
Subclass 5.2: Organic peroxides
Organic substances which contain the bivalent –O–O– structure and may be considered derivatives of hydrogen peroxide, where one or both of the hydrogen atoms have been replaced by organic radicals. Organic peroxides are thermally unstable substances which may undergo exothermic self-accelerating decomposition.
Subclass 6.1: Toxic substances
Toxic substances which are able to cause death or serious hazard to humans health during transportation.
Subclass 6.2: Infectious substances
These are substances known or reasonably expected to contain pathogens. Pathogens are defined as microorganisms (including bacteria, viruses, rickettsiae, parasites, fungi) and other agents such as prions, which can cause disease in humans or animals.
Class 7: Radioactive material
Radioactive material means any material containing radionuclides where both the activity concentration and the total activity in the consignment exceed the values specified in 2.7.2.2.1 to 2.7.2.2.6.
Class 8: Corrosive substances
Class 8 substances (corrosive substances) means substances which, by chemical action, will cause severe damage when in contact with living tissue or, in the case of leakage, will materially damage, or even destroy, other goods or the means of transport.
Class 9: Miscellaneous dangerous substances and articles and environmentally hazardous substances
substances and articles (miscellaneous dangerous substances and articles) are substances and articles which, during transport, present a danger not covered by other classes.
1.Substances which, by inhalation as fine dust, may endanger health
2.Substances evolving flammable vapour
3.Lithium batteries
4.Life-saving appliances
5.Capacitors
6.Substances and articles which, in the event of fire, may form dioxins
7.Substances transported or offered for transport at elevated temperatures
8.Environmentally hazardous substances
9.Genetically modified microorganisms (GMMOs) and genetically modified organisms (GMOs)
Other substances or articles presenting a danger during transport, but not meeting the definitions of another class.
OCEAN CONTAINER SPECIFICATIONS
1.Standard
| STANDARD 20' | STANDARD 40' | HIGH CUBE 40' | |
|---|---|---|---|
| INSIDE LENGTH | 19'4" | 39'5" | 39'5" |
| INSIDE WIDTH | 7'8" | 7'8" | 7'8" |
| INSIDE HEIGHT | 7'10" | 7'10" | 8'10" |
| DOOR OPENING WIDTH | 7'8" | 7'8" | 7'8" |
| DOOR OPENING HEIGHT | 7'6" | 7'6" | 8'5" |
2.Open Top
| OPEN TOP 20' | OPEN TOP 40' | |
|---|---|---|
| INSIDE LENGTH | 19'4" | 39'5" |
| INSIDE WIDTH | 7'7" | 7'8" |
| INSIDE HEIGHT | 7'8" | 7'8" |
| DOOR OPENING WIDTH | 7'6" | 7'8" |
| DOOR OPENING HEIGHT | 7'2" | 7'5" |
| CAPACITY | 1,136 ft3 | 2,350 ft3 |
| TARE WEIGHT | 5,280 lbs | 8,490 lbs |
| MAX. CARGO | 47,620 lbs | 58,710 lbs |
3.Reefer
| REEFER 20' | REEFER 40' | |
|---|---|---|
| INSIDE LENGTH | 17'8" | 39'5" |
| INSIDE WIDTH | 7'5" | 7'8" |
| INSIDE HEIGHT | 7'5" | 7'8" |
| DOOR OPENING WIDTH | 7'5" | 7'8" |
| DOOR OPENING HEIGHT | 7'3" | 7'5" |
| CAPACITY | 1,000 ft3 | 2,040 ft3 |
| TARE WEIGHT | 7,040 lbs | 10,780 lbs |
| MAX. CARGO | 45,760 lbs | 56,276 lbs |
4.Flat Rack
| FLAT RACK 20' | FLAT RACK 40' | |
|---|---|---|
| INSIDE LENGTH | 18'5" | 39'7" |
| INSIDE WIDTH | 7'3" | 6'10" |
| INSIDE HEIGHT | 7'4" | 6'5" |
| TARE WEIGHT | 5,578 lbs | 12,081 lbs |
| MAX. CARGO | 47,333 lbs | 85,800 lbs |
5.Flat Rack Collapsible
| FLAT RACK 20' COLLAPSIBLE 20' | FLAT RACK 40' COLLAPSIBLE 40' |
|
|---|---|---|
| INSIDE LENGTH | 18'5" | 39'7" |
| INSIDE WIDTH | 7'3" | 6'10" |
| INSIDE HEIGHT | 7'4" | 6'5" |
| TARE WEIGHT | 6,061 lbs | 12,787 lbs |
| MAX. CARGO | 61,117 lbs | 85,800 lbs |
6.Platfrom
| PLATFORM 20' | PLATFORM 40' | |
|---|---|---|
| INSIDE LENGTH | 19'11" | 40'0" |
| INSIDE WIDTH | 8'0" | 8'0" |
| INSIDE HEIGHT | 7'4" | 6'5" |
| TARE WEIGHT | 6,061 lbs | 12,783 lbs |
| MAX. CARGO | 52,896 lbs | 66,397 lbs |