Incoterms

Compliance and Supply Chain Risk

Compliance

International transport has a variety of compliance issues along its length, particularly in relation to declarations, documentation and legal liabilities.

Risk

Transport risks are manifold and include sudden rate spikes, accidents, delays, lien, natural disasters, conflict, political unrest, labor disruption, terrorism and piracy.

Mitigation

Having identified which international transport compliance and risk issues may arise, the mitigation responses include; ignore, insure, mitigate, reduce risk, or avoid risk.

Click on the Incoterm milestone below to see associated Risk/Compliance issues

Or click here for a complete breakdown

GOODS AVAILABLE AT SELLERS

LOADING FREIGHT AT SELLERS

CARRIAGE TO POINT OF EXPORT

EXPORT CUSTOMS FORMALITIES

LOADING CARGO AT ORIGIN

MAIN TRANSPORT

INSURANCE

UNLOADING CARGO AT DESTINATION

IMPORT CUSTOMS FORMALITIES

DESTINATION TRANSPORT

DELIVERY OF CARGO TO BUYER

EXW

Ex Works

Sea / Air

FCA

Free Carrier

Sea / Air

FAS

Free Alongside Ship

Sea

FOB

Free On Board

Sea

CPT

Carriage Paid To

Sea /Air

CIP

Carriage And Insurance

Paid To

Sea / Air

CFR

Cost and Freight

Sea

CIF

Cost, Insurance and

Freight

Sea

DAT

Delivered At Terminal

Sea / Air

DAP

Delivered At Place

Sea / Air

DDP

Delivered Duty Paid

Sea / Air

Key

  • Seller
  • Buyer
“Incoterms” is a trademark of the International Chamber of Commerce (ICC)

CARBON FOOTPRINT

International transport creates 3-4% of global carbon emissions: with air freight emissions more than 80 times than that of containerised sea freight.

The chart on the right shows emissions for a typical import from Shanghai factory to Dartford Kent by different modes. Even though the air freight shipment’s route is much shorter (9,297 km) than the sea freight shipment’s route (22,050 kms) it is still over 25 times more polluting.

Transport Mode tCO2e incl. WTT
AIR 6.744
SEA: Small container ship (1000-1000 TEU) 0.504
SEA: Large container ship (8000+ TEU) 0.243

EXPERT SOURCES

The British International Freight Association (BIFA) is the trade association for 1,500 UK-registered companies engaged in international movement of freight by all modes of transport, air, road, rail and sea

bifa.org

CILT is the membership organisation for professionals involved in the movement of goods and people and their associated supply chains

ciltuk.org.uk

CIPS exists to promote and develop high standards of professional skill, ability and integrity among all those engaged in procurement and supply chain management. CIPS assists individuals, organisations and the profession as a whole

cips.org

Green Element advise companies on a range of sustainability issues, from waste management and renewable energy implementation to environmental strategy, corporate responsibility and tenders, making them more sustainable, profitable and responsible

greenelement.co.uk

Established in 1832, HFW is a global commercial law firm, with over 500 lawyers working across the Americas, Europe, the Middle East, Asia and Australia. The firm specialise in six areas including Shipping & Transport, Insurance and Infrastructure

hfw.com

TT Club is the leading provider of insurance and related risk management services to the international transport and logistics industry, insuring 80% of all maritime containers and an insurable interest in 45% of the world’s top 100 ports

ttclub.com

Delivering cutting-edge technology solutions that correct the past, control the present and look into the future, to optimise your supply chain performance; eradicating errors and slashing your freight budget.

swg.global