INCOTERMS AND SHIPPING MODE ANALYSIS
Incoterms or International Commercial Terms were first published in 1936. They are a internationally recognised predefined series of commercial terms developed by the International Chamber of Commerce ( ICC ) that govern the contract and movement of goods.
There are advantages and disadvantages with each different Incoterm however more importantly, all parties to the contract should be very clear on who has responsibility for each part of the trade. In our experience this is not always the case. We will review the Incoterm that you are using and ensure that you are incurring the correct portion of risk, charges and responsibility to get the cargo to your door.
Incoterms were last updated in 2010. The ICC are currently working on a new set of Incoterms that are due to become effective from 1 January 2020. We understand that some existing Incoterms will be removed and new terms will be added.
We can also conduct an analysis of how you organize your shipping programme. We will look at the drivers for your decision making for service suppliers and give you feedback on possible better options. This may include possible service supplier changes, possibly going to market to secure better rates, developing a consolidation programme from a common origin, an air versus sea review, potential additional benefits from your current service suppliers that may be achieved etc. We know the questions to ask !
Are you prepared?
The rules are changing in 2020. Keep up to date!