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Blackwater Freight | international-shipping terms

International Shipping Terms Everyone Should Know

If you ship goods internationally, you need to know international shipping terms.

All parties involved in the shipping process must use the correct international shipping terms. Using these guidelines can help ensure smooth delivery and improve client satisfaction. Additionally, understanding the terms will minimize supply chain errors and reduce miscommunications.

Here are the international shipping terms every shipper should know.

Bill of Lading

Shippers use the Bill of Lading to specify the type, quantity, freight rate, and destination of goods. It also represents the agreement between the involved parties. It also guarantees payment to exporters and delivery to importers. Additionally, the Bill of Ladings also serves as shipping receipts.

Free On Board (FOB)

Free On Board refers only to sea freight. Sellers can deliver shipments to selected vessels or return goods at the buyer’s request. 

Once a shipment is on board a vessel, the risk passes from seller to buyer.

Free Alongside Ship (FAS)

Deliveries occur alongside the ship, i.e., within reach of the ship’s lifting tackle. 

All risk passes to the buyer, who arranges the main carrier and pays for all insurance.

COD – Change of Destination

Your goods are on their way to their destination. However, you need to change it for some reason. It’s time to request a COD. Using this request, the container ship will discharge your container. It will then transport it to a different location than its original destination.


Typically, ex works refer to delivering cargo to a factory, warehouse, or office. Therefore, the seller does not have to load goods onto a ship.

Customs duty and overseas shipping are the buyer’s responsibility. As a result, EXW favors sellers since they are only accountable for freight once it arrives.

Free Carrier (FCA)

The seller is responsible for arranging and covering delivery fees. Hence, the buyer’s responsibility is imports, exports, and goods transportation.

Carriage Paid To (CPT)

CPT allows the seller to arrange and pay for shipment, but the buyer bears the risk. 

Therefore, it is the buyer’s responsibility to pay for insurance. As soon as the seller arranges the main mode of transportation, the buying party assumes the risk. 

Cost and Freight (CFR)

Once the shipment crosses the ship’s rails, the risk passes from seller to buyer. 

With international shipping terms, it’s essential to know a lot. Fortunately, you don’t have to worry about figuring everything out alone.

Working with a trusted freight forwarding company ensures your best interests are always protected. 

Don’t hesitate to contact us today to learn more about how we can assist you with international shipping terms.

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