Delivery to market
There are many factors that need to be taken into account when deciding how best to deliver your goods to your customer. These include the nature of the product and customer location and the reliability, security, speed, cost and availability of the mode of transport. You will also need to ensure that you comply with packaging requirements and that the goods are adequately insured in case of damage or loss in transit.
Methods of Transport:
- Sea transport
Transport by sea tends to be used when goods are despatched to deep sea destinations, for example to China or South America. Vessels are equipped to take container loads and bulk cargo. The document associated with sea transport is the Bill of Lading.
-Conference Vessels operate a scheduled service between ports with fixed freight rates. They sail whether the vessel is fully laden or not.
-Non-Conference Vessels operate a more flexible service, with negotiable freight rates, but will only sail when the vessel is full. - Air transport
Air cargo is more suitable for smaller palletised consignments as there are restrictions on weight and dimensions. Air freight has the advantage of speed with low risks of damage and pilferage. The document associated with air transport is the Air Waybill. - Road transport
Road transport is often used for EU destinations and there are many freight forwarders offering daily services. Road transport is economical and offers a quick door to door service. The document associated with Road transport is the CMR Consignment Note. - Rail transport
Rail transport has increased between the UK and EU since the opening of the Channel tunnel. The document associated with Rail transport is the CIM Consignment Note. - International Courier & Postal Services
Smaller and urgent packages can be despatched on a door-to-door basis by express courier or postal service. There are several international courier services that can offer this service to a range of world-wide destinations:
DHL
TNT
FedEX
UPS
Parceline
Chronopost
Delivery Terms:
Delivery terms are part of your contract of sale and should be clearly stated. Delivery terms determine which party is responsible for costs from the point that the goods leave the seller’s premises to being delivered to the buyer overseas. Delivery terms also determine who bears the risk of loss or damage to the goods and who owns the goods whilst in transit.
Incoterms 2000:
For Incoterms 2000 to apply to your contract they must be stated in your contract of sale to avoid ambiguity over responsibilities and obligations.
- Incoterms 2000
Incoterms 2000 are a collection of the commonly used trade terms in international trade. It provides explanations of the different terms used in delivering goods to the overseas market. - Incoterms: A General Guide
This SITPRO briefing is aimed at anyone who is responsible for arranging the shipment of international goods and explains how to use Incoterms 2000. - Incoterms: An Action Plan & Checklist
This SITPRO briefing is aimed at anyone who is responsible for arranging the shipment of international goods and offers advice on choosing an Incoterm.
Packaging:
Full Container Loads (FCL) FCL cargo is suitable for exporters who have enough cargo to fill a container. Standard containers are usually 20ft or 40ft and the different types include General/Dry container, refrigerated, open top, open sided, half-height. There are also other types of containers for special products.
- Less than Container Load (LCL
LCL cargo is also known as Groupage or Consolidated cargo. The container is filled with cargo from a number of different exporters to make up the full container load. Cargo should be packed appropriately which may be shrink-wrapped on pallets, cartons or crates.
Cargo Insurance:
- Insurance Policy
The cargo insurance policy is the contract between the Insurer and the Insured and contains details of the terms of insurance including policy value, subject matter, duration, risks covered and exclusions. - Open Policy Insurance provides a blanket insurance covering all shipments made within a specified period e.g.over 1 year.
- Insurance Certificate
Insurance Certificates are provided by the Insurers which are completed by the exporter for each shipment. The benefit of the insurance can be signed over to the buyer by endorsement.
Institute Cargo Clauses:
- Institute Cargo Clauses are the categories of risk against which insurance cover can be secured. The principal clauses are:
Institute Cargo Clauses A, B, C, War Clauses and Strikes Clauses.
The highest level of cover are the A clauses which offer All Risks, subject toexclusion clauses.
Principles of Cargo Insurance:
- Indemnity: The assured is placed in as close a position as possible had the loss not occurred.
- Subrogation: The Insurer assumes the title and responsibilities of the insured once compensation has been paid.
- Utmost Good Faith: The insured must declare all material facts which may affect the insurance risk.
- Insurable Interest: The person insured must benefit from the safe arrival of the property or be prejudiced by the loss or damage of the property.
- Cargo Insurance
This SITPRO briefing explains why you need cargo insurance and where you can obtain it from.
Freight Forwarders:
Freight Forwarders provide specialist services for the transport of goods. The main service is to arrange for your goods to be transported to your overseas customer. They can also provide advice on documentation, packaging, customs & excise procedures, and even prepare shipping documentation on your behalf. There are many Freight Forwarders offering different services and freight rates will vary. It is recommended that several quotes are obtained before you decide which freight forwarder you will use.
- British International Freight Association The British International Freight Association website represents the UK international freight services industry and provides a list of reputable freight forwarders.
- Global Freight Directory
Freightnet website providing resources for forwarders, shipping lines, sea port authorities, airlines, airport authorities, household removers, warehousing, packers and fulfilment, freight software, track & trace, cargo and marine insurance, recruitment and freight associations. - A-Z Freight Gateway This gateway provides an on-line A-Z freight directory.
Humber Ports:
- Humber Forum
Information on the Humber Estuary Port Complex and the Humber Trade Zone Initiative which aims to provide opportunities for added-value economic activity and development.
Contact our international team for more information