Implement Internationally Recognized For Terms of Delivery

You may have known better, choosing the right seafood supplier for the continuity of your business is very important. However, how do you know that the seafood supplier you may have chosen is the right one? The right supplier is a supplier who analyzes, measures, and uses instructions that comply with international shipping standards to make it easier for the customers. By doing this, it means that the supplier is trying wholeheartedly to maintain customers’ trust globally.

In international shipping, there are many ways to deliver goods, this relates to the rights and obligations of the seller or buyer where the way the goods are delivered will affect the price of the goods themselves. Therefore, it is important to understand the terms of delivery. But what are the terms of delivery? Let’s check it out!

Understand Terms of Delivery Better

The terms of delivery are part and stipulated in the trade contract between the suppliers and the customers. Moreover, the person in charge of the company’s profitability is responsible for determining the correct terms of delivery. The decision is made by the suppliers and the customers.

The terms of delivery are also an order to the company’s internal and/or external logistics organization. It specifies what responsibilities the logistics company has on behalf of the suppliers or customers.

The term of delivery should be in accordance with the agreed custom of delivery and comply with the practice. Incoterms terms of delivery define ten obligations for the seller and for the buyer. Most important of them are the definitions of delivery and taking delivery, division of costs, and transfer of risk. If parties have agreed about these three items, usually there is no problem. But what are these three items?

• Delivery, to which point the suppliers can give instructions about and bear the delivery risk concerning the seafood products and from which point the customers give instructions and bear the risk.
• Costs, which costs of delivery are to be paid by the suppliers and which costs are to be paid by the customers.
• Risk, possibility of damage to or loss of products or general average during transit, or of delay of delivery

Secure International Shipping Standards: Incoterms 2020

International Chamber Commerce (ICC) has made changes to the terms and guidelines for international trade.  In 2020, the ICC made adjustments to the rules, (called Incoterms 2020), which in part, made changes to security requirements for shipments. 

ICC developed the Incoterms 2020 which are an internationally recognized set of trade term definitions. The terms define the trade contract responsibilities and liabilities between customers and suppliers. Incoterms cover who is responsible for paying freight charges, insuring items in transit, and covering any import/export duties. Incoterms are useful because once agreed upon, suppliers and customers can trade without debating obligations for the costs and risks covered by the term. 

Incoterms 2020 also made changes to the insurance coverage requirements under CIF agreements. Sellers are now required to obtain a higher level or more comprehensive insurance than what was required under Incoterms 2010.

Introduce you to C-Fishery, the best seafood supplier from Indonesia. A reputable supplier is known for its responsibility to supply seafood all over the world with international standardized shipments. By adopting the CIF method, we would love to create a way to make it easier for import-export activity when sending seafood products. What’s preventing you from discussing further with us? Contact our representative to satisfy your curiosity. (Yustika)