Questions and Answers

Buying and selling goods internationally can be challenging, which is why the International Chamber of Commerce (ICC) developed the Incoterms. The Incoterms (International Commercial Terms) are simply rules that specify which party in the supply chain is responsible for certain duties, expenses, and hazards related to the shipment of products. The Incoterms have been in use for more than 60 years and are acknowledged by all international courts and organizations. Their primary goal is to decrease or eliminate uncertainty caused by varying interpretations of the rules in different countries. Because of this, theIncoterms are frequently used in contracts all over the world to clearly state what is expected of allinvolved parties. Understanding the Incoterms is essential, since they will be invoked in the event of a misunderstanding or legal conflict. Any logistics expert will recognize this note on the box or document. Within these regulations, some phrases have particular definitions. Among the more significant ones are:

• Delivery – The moment in the transaction in which the risk of loss or damage to the goods is transferred from the seller to the buyer
• Arrival – The moment up to which the transport of goods is paid
• Free- Obligation of the seller to deliver the goods to the designated place where the carrier picks them up
• Carrier – Any person/company who undertakes to carry out or provide goods transportation by contract
• Forwarder – A company that arrangesor assists in making arrangements for shipping of goods
• Prepared for export – Transmitting the sender’s export declaration and obtaining an export permit

Visit the cargo-partner website for additional details, or get in touch with us for an in-depth consultation!

The best transport mode for you will depend on a variety of factors. Costs, transit time, type of goods and shipment size, destination, security… All of these factors will play a role in choosing the best solution.

The “rules” that were in place prior to COVID-19 are no longer relevant in light of the challenges that the logistics industry has faced over the last two years. Closures of cities, ports, and border crossings, lack of drivers, heavy traffic, and the imbalance of supply and demand have significantly influenced the available transport options and their costs.

Taking all this into consideration, we provide a comparison of sea and road transport below, examining the benefits and drawbacks of each transport mode.

Sea Cargo

Advantages of sea freight:

• Suitable for a wide range of goods
• Most environment-friendly
• Worldwide coverage
• Several carriers to choose from
• Shipment security – the container protects your goods from risks like theft, loss of quality, fire or extremely high and low temperatures

Pricing for sea freight shipments differs according to whether you are transporting a full container load (FCL) or less than a container load (LCL). Full containers usually come at a standard price. If you are shipping less than one container, the price will be charged per cubic meter. This makes shipping by sea freight one of the most cost-effective options – not only for large and heavy goods, but also for smaller shipments.

You’ve probably heard the expression “time is money”. Depending on your shipment, this may or may not be accurate. If the orders are received in a timely manner, sea freight can be a viable option due to its low price. A ship’s journey can take up to a month or more, but technology is developing rapidly and ships are becoming faster, so you may even achieve transit times as short as 8 days.
However, if your shipment is time-sensitive, road transport may be the better option.

Road Transport

Despite being the most popular transport mode, road transport has its drawbacks. Trucks can only transport cargo of a specific height and weight. Another disadvantage is their sensitivity to weather, road conditions, and traffic jams.

But transporting your goods by truck also has many benefits:

• Cost-effectiveness for short routes
• Fast and reliable delivery
• Flexibility
• Door-to-door service
• Ideal for short distances and domestic distribution

In addition to all of the above, the destination of the delivery is equally significant. For a long-distance journey, you will most likely choose a ship or a combination of ship and truck. For short distances within Europe, you will probably choose road transport – but there might be another possibility.
Short sea solutions can be an alternative for European destinations. Large shipments can be transported by ship to destinations like Spain, Portugal, the United Kingdom, Turkey, and Scandinavia. In some cases, a ship may even be the only option due to the numerous regulations and paperwork required for road transportation.

In conclusion, there is no one perfect option and we recommend consulting experts when making the decision between sea and road transport. Our team at cargo-partner will gladly guide you in the selection process and identify the best option for your company.

Visit the cargo-partner website for additional information, or contact us for an in-depth consultation!
cargo-partner | transport + iLogistics

For many shippers, transportation costs seem to be an enigma. Cost calculation is far more complex than the cost of transport from point A to point B, because it includes additional elements, too. Most carriers will only offer you the price of transport, which does not mean that your goods will be delivered to the final destination. For this, you will have to choose other subcontractors. Additionally you will need adequate support for customs services, accompanying documentation, insurance of goods … All this means that in addition to the basic service (transport), you will pay for at least a few other additional services provided by various subcontractors.

Actually, if price is a decisive factor and transit time and quality of delivery are flexible, then you can look for different offers with regard to financial and organizational terms and invest time and energy in reducing costs. On the other hand, you should keep in mind that hiring more subcontractors usually prolongs transit times (time from sending to the arrival of goods) with one interesting question: have you included your own work and time spent in your calculation? This option is not the worst if efficiency and transport time are not a priority, but you should be aware that the more subcontractors are involved, accountability becomes more complexshould something go wrong during the transport process.

To make their clients’ business easier, many freight forwarders have introduced a door-to-door service. Owners of goods can get detailed consultations and personalized solutions. The door-to-door service (first and last mile delivery) usually includes proposing the best route and adequate means of transport, finding and reserving cargo space (truck, plane, ship, train), preparing all necessary documentation and permits for international transport of goods, solving all customs procedures, loading, transport and unloading of goods with constant monitoring of the movement of the shipment.

There are also additional services offered by freight forwarders – insurance of goods in transport (basic or All Risk), as well as storage of goods in customs bonded or commercial warehouses.

If you are delivering or importing goods from distant destinations, check the size of the international network and the coverage of the potential logistics partner offices. Having a representative of the chosen company in a port or airport can make your plans a lot easier.

For more information, visit the cargo-partner web site or contact us for a detailed consultation!

Best regards,

cargo partner | transport + iLogistics

 

Since January 1, 2021, the United Kingdom is no longer a member of the EU and has “third country status” with a separate customs territory from the EU. Although the EU and UK signed a free trade agreement, there are still significant changes in documentation and processes that must be followed in order for the EU and UK to trade with each other.

All imports and exports of goods between the UK and the EU are now subject to customs procedures. As each EU jurisdiction has its own reporting model, these procedures can differ depending on transport mode and port of exit/entry. Therefore, it is very important to know your cargo flow and route to market as this can affect customs processes.

Importers and exporters have to provide comprehensive documentation for customs clearance. This includes a full and complete commercial invoice containing shipper and consignee details and EORI numbers, Incoterms, HS commodity codes, product description, origin and value of goods, number of packaging units and cargo weight. Depending on the type of cargo, additional documents like a phytosanitary certificate may be required.

Just in time for Brexit, on January 1, 2021, cargo-partner opened its office in Manchester, UK to optimally support its customers with post-Brexit customs processes. Our experts are glad to help prepare the necessary documentation and answer any other questions regarding transport between the EU and UK. As an accredited AEO (Authorized Economic Operator), cargo-partner can ensure speedy customs processes. With our extensive network throughout Europe, we can take over coordination with all involved companies and authorities in the local language. In addition, we provide a range of express transport services by air and road transport.

For more information, visit our website or contact us for a detailed consultation!

Best regards,

cargo-partner | transport + iLogistics