International Shipping Terms You Should Know

It’s crucial to have a firm grasp of the various roles each party plays in international shipping. The customer and the seller in an international shipping contract have different payment responsibilities for the various types of shipments. Always be aware of what is inside your sphere of responsibility and budget. If the shipment does arrive damaged, you need to know whose insurance will pay the costs. Everyone participating in a shipment must use the right incoterms. In order to ensure seamless delivery and give superior service to customers, it is important to follow these principles. The best example of this might be freight forwarding companies in Bahrain. Here are some of the most important international shipping terms you should know.

Important International Shipping Terms You Should Know

The latest set of 11 terms agreed upon and published by the International Chamber of Commerce is Incoterms 2010. The purpose of these rules is to clarify the obligations and expectations of both parties during freight deliveries; they are neither a contract nor a rule of law. These are standard provisions in many sales contracts across the globe.  And you need to consider them before agreeing on any delivery.

international shipping terms you should know before shipping
Shipping is a complicated matter and if you’re gonna open a shipping business, you need take it seriously.

The use of Incoterms is recognized and acknowledged by regulatory agencies all around the globe. At each step of the delivery process, responsibilities for the cargo are spelled down, along with details like who is responsible for loading and unloading the cargo once it arrives at its destination and who is responsible for paying for specific fees. Certain incoterms are limited to canal travel (sea and inland waterway), whereas others include all modes of transportation. Today we’ll focus on the most important ones.  If you need any additional information on Incoterms, feel free to contact logistics companies in Middle East and they’ll explain everything to you in detail.

1. FOB – Free On Board

The term “free on board” is only for ocean freight. As per FOB, the seller either provides the items already in transit or delivers them on board the vessel specified by the customer at the designated port of export. When cargo is FOB, the risk goes from the seller to the buyer after it has boarded the vessel.

2. FAS – Free Alongside Ship

The least advisable way is “Free Alongside Ship,” which means no docking fees. The export country clearance procedures are handled by the seller or shipper, while the remainder of the package is handled by the recipient. The recipient is fully liable for any charges and any damage or loss to the goods. For clearance at the export terminal, the sole request is that the seller does so. If you have any more questions about this one, fright forwarders Riyadh are the best ones to ask.

shipping dock
Free Alongside Ship is one of the most debated international shipping terms.

3. Air Freight

The high price tag is the primary drawback of air freight. But if you need something quick and the delivery time is critical, this method is excellent. You’ll need to locate someone you can trust, of course. One to whom you may entrust the task of arranging shipping services for your belongings. For example, Four Winds KSA. International shipping is no walk in the park so we suggest that you arm yourself with patience. Understanding international shipping terms will be very helpful to you.


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