What is Demurrage and Detention?

What is Demurrage and Detention?

Freight forwarders, importers, exporters and many other parties within the space often hear the terms ‘demurrage and detention’. At Trade Finance Global, we often come across confusion between the two terms, and a not too much understanding about the key differences between demurrage and detention. Demurrage and detention are incredibly important terms that often lead…

Will International Freight Rates Continue to Rise in June 2024?

Will International Freight Rates Continue to Rise in June 2024?

The Red Sea Crisis Constrains Global Shipping Supply The international shipping market is now facing a new geopolitical challenge – the Red Sea crisis. The Red Sea region is a critical global shipping corridor, and the ongoing crisis in this area is directly impacting the safety of maritime operations. Major shipping lines are frantically rerouting…

What is DDP?

What is DDP?

Delivery Duty Paid (DDP) Delivery duty paid (DDP) is a delivery agreement where the seller (exporter) is responsible for the shipment and for all potential risks and costs, until the shipment reaches its final destination. The potential costs ”include all transportation costs, any loss due to damage during transit, and the payment of customs duties, import taxes,…

What is CIF cost?

What is CIF cost?

CIF Incoterm definition – CIF Shipping for sea freight The CIF shipping term means that the seller is obligated to cover the cost, insurance and freight transport of goods to the named port of destination. The seller is responsible for clearing the goods for export, providing any type of documents or export licenses required for…

What is EXW(ex-work)?

What is EXW(ex-work)?

The Incoterm that places the most responsibility on the buyer, EXW, or Ex Works, indicates an international trade contract in which the seller has the goods ready for pickup from an agreed on location and (often the seller’s factory) buyer is responsible for all operations including pickup, export responsibilities, and all transportation. According to EXW…

Free on Board (FOB) Explained: Who’s Liable for What in Shipping?

Free on Board (FOB) Explained: Who’s Liable for What in Shipping?

What Is Free on Board (FOB)? Free on Board (FOB) is a shipment term that defines the point in the supply chain when a buyer or seller becomes liable for the goods being transported. Purchase orders between buyers and sellers specify the FOB terms and help determine ownership, risk, and transportation costs. “FOB Origin” or FOB Shipping Point” means…

10 Ways To Save Money When Shipping Via Sea Freight

10 Ways To Save Money When Shipping Via Sea Freight

If you’re importing from overseas, sea freight is often the cheapest option – but did you know that you can save even more? Sea freight is a great bargain in comparison to other methods of international shipping, it’s true – but that doesn’t make sea freight cheap. When you’re importing, you want to minimise your…

What is Delivered Duty Unpaid (DDU)?

What is Delivered Duty Unpaid (DDU)?

Delivered Duty Unpaid (DDU) is a trade term where the seller ensures goods are delivered to a specific destination. The seller pays all transportation expenses and assumes all risks during transport. The buyer is responsible for paying all import duties and additional transportation costs. DDU was removed from the official list of Incoterms in the 2010 revision. …