What are the commonly used trade terms in transshipment trade? Can anyone shed some light?

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I'm new to transshipment trade and not very clear about trade terms. I'd like to ask everyone, what are the commonly used trade terms in transshipment trade? Are terms like FOB and CIF applicable in transshipment trade? Are there any other special trade terms? I hope experienced friends can share their insights so I can better understand the use of trade terms in transshipment trade and avoid mistakes in future work.
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Emma Zhao
Emma ZhaoYears of service:3Customer Rating:5.0

Export Documentation SpecialistStart a Chat

The commonly used trade terms in transshipment trade have similarities with general trade. FOB (Free on Board) means the seller delivers the goods on board the vessel specified by the buyer at the named port of shipment, and the risk transfers to the buyer. This term is often applicable in transshipment trade, especially when the buyer is responsible for arranging the shipment. CIF (Cost, Insurance and Freight) means the seller is responsible for delivering the goods to the destination port and arranging insurance. It is used in transshipment trade involving sea transport when the seller wishes to have comprehensive control over the transportation and insurance aspects. In addition, there is CFR (Cost and Freight), where the seller is responsible for transportation but not insurance. FCA (Free Carrier) means the seller fulfills its obligation to deliver the goods when it hands them over to the buyer's nominated carrier at the named place, after clearing them for export. It offers high flexibility and is suitable for various modes of transport, and is also commonly used in transshipment trade. These terms should be chosen reasonably based on the actual situation of transshipment trade, such as the mode of transport and the division of responsibilities.

References: Wuhan Plastic Bag Re-export Trade: The Secrets Behind It
Thomas Li
Thomas LiYears of service:7Customer Rating:5.0

Import Licensing AdvisorStart a Chat

In addition to the above, CPT (Carriage Paid To) may also be used in transshipment trade. The seller pays the freight for the carriage of the goods to the named destination, and the risk transfers when the goods are handed over to the carrier. It is suitable for various modes of transport.

Robert Tan
Robert TanYears of service:5Customer Rating:5.0

International Market Development AdvisorStart a Chat

CIP (Carriage and Insurance Paid To) is also commonly used. Similar to CPT, the seller also needs to arrange insurance. This term is quite suitable if the transportation risk in transshipment trade is high.

Sophia Wang
Sophia WangYears of service:6Customer Rating:5.0

International Logistics CoordinatorStart a Chat

EXW (Ex Works) is occasionally used in transshipment trade. The seller fulfills its obligation to deliver when the goods are placed at the disposal of the buyer at the seller's premises or at another named place, and the buyer bears all subsequent risks and costs.

Linda Guo
Linda GuoYears of service:3Customer Rating:5.0

Trade Dispute MediatorStart a Chat

FAS (Free Alongside Ship) means the seller delivers the goods when they are placed alongside the vessel at the named port of shipment, and the risk transfers. If the loading and unloading arrangements are led by the buyer, this term can be considered.

Daniel Kim
Daniel KimYears of service:4Customer Rating:5.0

Commodity Inspection and Quarantine ConsultantStart a Chat

In transshipment trade, if inland transport is dominant, FCA might be more convenient as it is not limited to ports and goods can be handed over to the carrier inland.

Anthony Luo
Anthony LuoYears of service:10Customer Rating:5.0

Trade Compliance ExpertStart a Chat

When choosing between CIF and CIP, it depends on the insurance terms and rates. CIP is suitable for all types of transport, while CIF is mainly for sea transport. Choose based on the actual transportation situation.

Michael Zhang
Michael ZhangYears of service:10Customer Rating:5.0

Customs Clearance SpecialistStart a Chat

For small transshipment traders, EXW might reduce upfront costs and shift more risk to the buyer, but the buyer's willingness should be considered.

David Chen
David ChenYears of service:10Customer Rating:5.0

Trade Compliance AdvisorStart a Chat

Transshipment trade involves multiple transportation and handover stages. Terms like FCA, CPT, and CIP, which are adaptable to various modes of transport, are more conducive to flexible logistics arrangements.

Kevin Huang
Kevin HuangYears of service:3Customer Rating:5.0

E-Commerce Export AdvisorStart a Chat

When selecting trade terms, consideration should be given to the policies of the transshipment country. For example, some places have different regulations for cargo supervision under specific terms, which should be understood in advance.

User-submitted questions and answers reflect personal opinions, not the official stance of this website.

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