Week 9: International Logistics and INCOTERMS Flashcards
CPT
Carriage Paid To
Define Carriage Paid To
Carriage Paid To is when the seller is responsible for arranging carriage to the named place, but not for insuring the goods to the named place. The delivery of goods takes place, and the risk transfers from seller to buyer at the point where goods are taken in charge by a carrier.
CIP
Carriage and Insurance Paid To
Define Carriage and Insurance Paid To
Carriage and Insurance Paid To is when the seller is responsible for arranging carriage to the named place and insuring the goods. The risk transfers from seller to buyer when the goods are taken in charge by a carrier.
CFR
Cost and Freight
Define Cost and Freight
Cost and Freight is when the seller arranges and pays for transport to the named port. Risk transfers from seller to buyer once the goods have been loaded on board, before main carriage takes place.
CIF
Cost, Insurance and Freight
Define Cost, Insurance and Freight
Cost, Insurance and Freight is when the seller arranges and pays for transport to the named port. Risk transfers from seller to buyer once the goods have been loaded on board. Seller arranges and pays for insurance
FCA
Free Carrier
Define Free Carrier
Free Carrier is a flexible rule where the buyer arranges the main carriage. Delivery and transfer of risk takes place when the truck arrives at the place, ready for unloading.
FAS
Free Alongside Ship
Define Free Alongside Ship
Free Alongside Ship is where the seller has direct access to the vessel for loading. The seller delivers the goods alongside the vessel at the named port, where risk transfers to the buyer.
FOB
Free on Board
Define Free on Board
Free on Board is where the seller has direct access to the vessel for loading. The seller delivers the goods, loaded on board to the vessel at the port. Once the goods have been loaded on board, the risk transfers to the buyer.
