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the ICC (International Chamber of Commerce) currently promotes eleven Incoterms®, and each Incoterm® has a unique allocation of risk, costs, and responsibility for both buyer and seller. Certain Incoterms® can only be used for ocean transport, while others can be used for all modes of transport. The four Incoterms® that apply specifically to ocean transport are FAS, FOB, CFR, and CIF.
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The 2020 revision covers 11 different stages of delivery, with each Incoterm® specifying varying levels of cost, risk and responsibility for an exporter. Incoterms® have nothing to do with payment methods or the point at which ownership passes from the seller to the buyer. They are concerned only with delivery and relate only to the seller and the buyer.
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Several modes of transport are available to deliver a consignment of goods, which may initially seem a little overwhelming. An important consideration to make is whether the destination of the delivery requires the crossing of an ocean. If so, the next major question is relatively simple: By sea freight? or by air freight?
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As we discussed in our 'Incoterms® explained' article, Incoterms® are reviewed more or less every ten years, with the latest version being Incoterms® 2020. The 2020 revision covers 11 different stages of delivery, with each Incoterm® specifying varying levels of cost, risk, and responsibility for an exporter. Incoterms® have nothing to do with payment methods or the point at which ownership passes from the seller to the buyer. They are concerned only with delivery and relate only to the seller and the buyer. This article focuses on Ex Works and its implications for the seller.
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Incoterms® indicate which party to a contract bears the risk, costs, and responsibilities at any given time during the delivery of goods in a particular transaction. The ICC currently promotes eleven Incoterms®, and each term has a unique allocation of risk, cost and responsibility for both buyer and seller. In this article, we list the 11 Incoterm® rules, explain how the terms are categorised and indicate the Incoterms® rules that only apply to ocean transport.
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There are many pivotal elements to consider when it comes to finding the right mode of transport for your consignments of goods. However, choosing the right mode of transport traditionally relies on assessing the product you are exporting, your geographical location and the arrangements negotiated with your buyer.
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Ocean transport offers an effective mode of transport when exporting your goods to a buyer in a foreign market. Ocean transport is one of the oldest forms of transportation in international trade but has evolved considerably since the times of early merchants sailing on wooden ships.
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Choosing the most appropriate mode of transport when exporting your goods to foreign markets significantly influences your business's international success. However, choosing whether to use sea transport, air freight, road freight, rail freight, or a combination of transport modes requires careful consideration and planning.
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When exporting from Southern Africa, an exporter has several modes of transport they may utilise to transport their goods to their buyer effectively. One such option is road freight. Road freight is one of the most viable modes of transport for trade internationally in situations whereby the buyer's country is accessible by land
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If you are selling your goods to another SACU or SADC member country, road transport would likely be an efficient mode of transport to deliver your products to your buyer effectively. Approximately 75% of trade between SADC countries depends on road transportation to successfully deliver goods.
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