2. OVERVIEW
What is Logistics ?
International Logistics
Incoterms and its classification
Shipment Routes - Sea and Air
3. LOGISTICS
It is the management process of planning and controlling the physical
and information flows concerned with materials and final goods from
the point of origin to the point of usage.
International Logistics is the management of these resources in a
company’s supply chain across at least one International border.
5. INCOTERMS 2010
Incoterms are trade terms published by the International Chamber of Commerce (ICC)
that are commonly used in both international and domestic trade contracts.
Incoterms 2010
CFR — Cost and Freight
CIF— Cost, Insurance and Freight
CIP — Carriage and Insurance Paid Тo
CPT — Carriage Paid To
DAP — Delivered at Place
DDP — Delivered Duty Paid
DAT — Delivered at Terminal
EXW — EX Works
FAS— Free Alongside Ship
FCA — Free Carrier
FOB — Free On Board
6. RULES FOR SEA AND INLAND WATER TRANSPORT
FAS - Free Alongside Ship: Risk passes to buyer, including payment of all transportation
and insurance costs, once delivered alongside the ship (realistically at named port
terminal) by the seller. The export clearance obligation rests with the seller.
FOB - Free On Board: Risk passes to buyer, including payment of all transportation and
insurance costs, once delivered on board the ship by the seller. A step further than FAS.
CFR - Cost and Freight: Seller delivers goods and risk passes to buyer when on board
the vessel. Seller arranges and pays cost and freight to the named destination port. A
step further than FOB.
CIF - Cost, Insurance and Freight: Risk passes to buyer when delivered on board the
ship. Seller arranges and pays cost, freight and insurance to destination port. Adds
insurance costs to CFR.
7. RULES FOR ANY MODE OR MODES OF TRANSPORTATION:
EXW – Ex Works: This is a term that defines the place of delivery. The
seller simply makes the goods available at his/her place and the buyer
is responsible for loading the goods. The buyer is also responsible for
the export documentation and getting the goods through the customs.
FCA – Free Carrier: The seller delivers the goods, cleared for export
to whatever carrier buyer wants to use at whatever place has been
agreed upon.
CPT – Carriage Paid To: This term sets an agreement where the
sellers pays for carrier and the risk is than transferred to the buyer.
8. CIP – Carriage and Insurance Paid To: The seller pays for carriage
and insurance to the destination port. Once the goods reaches the
destination the risk is transferred to the buyer.
DAT - Delivered at Terminal: In this situation the seller covers the
costs of almost everything – export fee , carriage, insurance and
destination port charges.
DAP - Delivered at Place: Seller bears cost, risk and responsibility for
goods until made available to buyer at named place of destination.
9. DDP – Delivered Duty Paid: The seller delivers the goods to the named
place in the buyer’s country and pays all costs associated with bringing the
goods to the destination. This includes import duties and taxes.
10. USUAL ROUTES
Sea Shipment
Air Shipment
Time Constraint
Shipping Line Route Availability
Things to consider
11. SEA ROUTE : EXAMPLE – 1
• Exporting Country –
India
• Final Point – Guatemala
• Route :
• Mumbai to Mumbai Port
• Guatemala Port
• Guatemala City
12. EXAMPLE - 2
• Exporting Country –
India
• Final Point – Guatemala
• Route :
• Kochi to Cochin Port
• Santo Domingo
• Dominican Republic
