How many pallets fit in a container?

Vast majority of foreign trade transactions are completed via sea shipments and 90% of sea transportation is carried out with containerized shipments in today's global economy.

As a result knowing how many pallets could fit in a container is a critical piece of information that every exporter and importer should be familiar with.

Today I am going to explain how many pallets fit in a container...But..wait a second...

Actually there are several pallet types available on the market. Euro pallets, industrial pallets and asia pallets are the most common pallet types that is in circulation. 

In addition to pallet types, there are more than a dozen of container types and sizes in use in international logistics.

The combination of different pallets and containers makes it harder to create a simple list of pallet amounts per container. Right!


On this page you can find various examples of pallet loading amounts for different container types.

What are the differences between FAS and FOB Incoterms?

Today I am going to write about the differences two major incoterms, FAS and FOB, which have been in use since the presentation of international commercial terms by ICC in year 1923.

First Incoterms: A Trade Terms Committee with the assistance of the ICC National Committees developed the first six rules in 1923: FOB, FAS, FOT, FOR, Free Delivered CIF and C&F, which were the precursor of what would later be known as the Incoterms rules.



What are the differences between DAP and DDP Incoterms?

Delivered at Place (DAP) and Delivered Duty Paid (DDP) are two incoterms that needs to be used when exporter delivers goods to importer not in his own country but in most cases in a place that is specified within the importer's country.

Although both of these two incoterms have many common characteristics, there are some meaningful differences exist between DAP Incoterms 2010 and DDP Incoterms 2010. 

Today I want to mention the differences between DAP Incoterms and DDP Incoterms according to latest ICC rules of international commercial terms.


What are the differences between DAT and DAP Incoterms?

DAT and DAP are two new international commercial terms, which have been introduced to the foreign trade world with the publication of Incoterms 2010 rules. 

Before January 1, 2011, which is the effectiveness date of Incoterms 2010, there were no incoterms called DAT or DAP.

Today I want to mention the differences between DAT Incoterms and DAP Incoterms according to latest ICC rules of international commercial terms.
 



What are the differences between CIF and CIP Incoterms?

So far on this website, I have explained the differences between EXW and FCA as per Incoterms 2010 rules, the differences between FOB and FCA as per Incoterms 2010 and the differences between CIF and FOB

Today I want to mention the differences between CIF Incoterms and CIP Incoterms according to latest ICC rules of international commercial terms.

CIF and CIP are the only incoterms, which regulates the insurance coverage of the transaction. 

Under these two incoterms, exporters obligated to supply an insurance policy to importers.


What are the differences between FOB and CFR?

Previously on this website, I have explained the differences between EXW & FCA, FOB & FCA and FOB & CIF.

Today I would like to talk about the differences between FOB Incoterms and CFR Incoterms.

Firstly, I need to make the definitions on each incoterms as follows.

Definition of FOB according to Incoterms 2010 rules

FOB means Free on Board. According to incoterms 2010 rules, an exporter delivers the goods to the importer once the goods shipped on board a named vessel at the port of loading.

Exporter neither arranges the transportation from port of loading to port of discharge, nor pays for the freight cost under FOB terms.


Additionally exporter has no obligation against the importer in regards to marine insurance.

What are the differences between CIF and FOB?

So far on advancedontrade.com, I have explained the differences between EXW and FCA as per Incoterms 2010 rules and the differences between FOB and FCA as per Incoterms 2010 .

Today I want to mention the differences between CIF Incoterms and FOB Incoterms according to latest ICC rules of international commercial terms.

First of all let me make the definitions of both trade terms according to current incoterms rules:
  • Definition of FOB according to Incoterms 2010: “Free on Board” means that the seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered.
  • Definition of CIF according to Incoterms 2010: “Cost, Insurance and Freight” means that the seller delivers the goods on board the vessel or procures the goods already so delivered.

Once you read above definitions, which are taken from Incoterms 2010, you should be amazed like myself, as both definitions are the same. No I did not make any mistake. These are the real definitions of FOB and CIF from Incoterms 2010.


How to calculate minimum insurance cover under CIF deliveries?

CIF means "Cost, Insurance and Freight" in international commercial terms terminology.

CIF is one of the most frequently used incoterms in foreign trade transactions, but it is widely misunderstood and misused by the practitioners.

For example CIF term is commonly used with land or air shipments, whereas CIF can only be used with sea shipments according to ICC Incoterms 2010 rules.

Additionally, under CIF trade term risk passes from exporter to importer when the goods are shipped on board a vessel at the port of loading. 

But many exporters believe that their risk will not be over until goods are being discharged at the port of destination. 



Above I have defined two major misunderstandings regarding the mode of transport usage and delivery responsibility of the CIF incoterms. 

Now I would like to focus on the insurance coverage of the CIF incoterms.

What are the differences between EXW and FCA as per Incoterms 2010?

On my previous article, I have explained the differences between FOB and FCA as per Incoterms 2010 rules

Today I would like to write about the differences between another two frequently used incoterms: EXW and FCA.

Let me start with the definitions of these trade terms in question.
  • EXW (Ex Works) means that the exporter delivers when it places the goods at the disposal of the buyer at the exporter’s premises or at another named place (i.e., works, factory, warehouse, etc.).
  • FCA (Free Carrier) means that the exporter delivers the goods to the carrier or another person nominated by the buyer at the exporter’s premises or another named place.

What are the differences between FOB and FCA as per Incoterms 2010?

FCA( Free Carrier) is a very flexible trade term, which should be preferred instead of EXW (Ex Works) and FOB (Free on Board) incoterms in most situations, because the usage of Ex Works and Free on Board is not suitable for large scale of situations.

For example, frequently exporters and importers use Ex Works trade term, where the exporter handles and pays for the export custom duties. 

But according to Incoterms 2010 rules, importer must arrange the export custom operations under Ex Works trade term, where such clearance is applicable.

In these situations foreign trade parties should use FCA instead of EXW.



ICC recommends FCA instead of FOB in containerized shipments. But why?

FOB (Free on Board) and FCA (Free Carrier) are two well-known and frequently used trade terms of Incoterms 2010.

Both FOB anf FCA have been in circulation for a long period of time, as they been defined under previous versions of Incoterms.

FOB is one of the oldest incoterms, which has been created in 1923. FCA introduced to the export-import world in 1980.

ICC recommends FCA instead of FOB in containerized shipments.

ICC included a warning message in Incoterms 2010, which catches the most practitioners by surprise.

One of the explanatory paragraphs under the FOB rule states that:
FOB may not be appropriate where goods are handed over to the carrier before they are on board the vessel, for example goods in containers, which are typically delivered at a terminal. In such situations, the FCA rule should be used.

Is it possible to use FOB incoterms with land and or air shipments?

The aim of the international commercial terms, known as incoterms, is to create a set of international standard rules for the application of the most commonly used trade terms in foreign trade.

Incoterms can only achieve its goal if it could reduce or eliminate the uncertainties of different interpretations of such terms in different countries.

ICC, International Chamber of Commerce, published latest version of international trade terms rules, which is known as Incoterms 2010. 

Incoterms 2010 rules define 11 different trade terms.

FOB, Free on Board, trade term is one of the most frequently used incoterms along with CIF and Ex Works. 

As a result every exporter or importer must understand these trade terms very well.


Is it possible to use CIF incoterms with air shipments?

Incoterms 2010 is the newest set of rules, which regulates international trade terms. 

There are 11 different trade terms defined in Incoterms 2010 rules. 

Each trade term defined in incoterms 2010 rule have a unique characteristics. 

As a result an exporter or importer must understand the differences between trade terms in detail.


What does CIF trade terms mean according to Incoterms 2010 rules and what are the key characteristics of CIF incoterms?

CIF means "Cost, Insurance and Freight" according to Incoterms 2010 rules. “Cost, Insurance and Freight” means that the exporter delivers the goods on board the vessel at the port of loading as determined by the sales contract.

Alternatively exporter can procures the goods already shipped on board a vessel as per CIF trade terms. 

This is a common practice in crude oil market.

What are the risks of open account payment for importers?

Open account payment is the less risky payment option for importers. 

Generally, under open account terms, importers pay the order amount after they have received the goods.

As a result there is not much thing to worry about for the importers when working with an open account payment term.

Nevertheless on this article I will try to explain you possible risks of an open account payment term for the importers.

What are the risks of open account payment for exporters?

Companies do export and import business in order to make money.

But just like any other businesses, international trade have some risks, the considerable amount of which lays beneath the financial side of the operations. 


An exporter has to bear significant amount of risks when trying to complete an export operation via an open account payment, as the importer only pays the amount of the goods after the goods have been shipped and in most cases after they have been received by the importer.


Today I would like to explain the risks associated with open account payment term for exporters.


What sort of information should not be mentioned on a packing list?

So far on my website, I have written following articles about the packing lists: "How to create an export packing list?" and "Should the container number be mentioned on the packing list?"

I suppose I will be keep writing in different aspects of the packing list, as it is a very important export and import document.

Today I would like to explain you what kind of information should not be covered under the packing list and why.

What sort of information should not be mentioned on a packing list?

Packing list is not a financial document. 

It is used by logistics personnel, who should have no connection with the financial information about the goods.

Additionally, sometimes packing list may be delivered to the final customer as is, without checked by the importer, who is the intermediary company between the exporter and the final buyer. 


How to create an export packing list?

A packing list is a trade document that identifies details about the contents of a package.

A packing list is especially helpful in international trade transactions for confirming the number of items during the transportation stages.

Packing list is a shipping document, which is widely used in export and import transactions.

Combined with the commercial invoice, certificate of origin and transport documents, packing list is one of the core documents that needs to be created in an international trade operation.


What are risks of making air shipments when using documents against payment method?

Documents Against Payment (D/P) is a payment method used in international trade transactions.

This payment method has couple of alternative names such as documentary collections, cash against documents, CAD and documents against acceptance.

There are various advantages of using this payment method in export and import operations.

Some of the advantages of documentary collection payment method can be mentioned as follows:
  • Documentary collection payment method is easy. 
  • Documentary collection is relatively a cheap payment option comparing to letters of credit. 
  • Documentary collection is a fast international payment type comparing to letters of credit.


Despite all of these advantages stated above, documentary collection payment has couple of disadvantages, which have to be burdened by the exporters.

What is the difference between a bill of lading which is signed as carrier and as agent of the carrier?

A bill of lading could be signed by one of the entities stated below:
  • the carrier or 
  • an agent of the carrier or 
  • the master or 
  • an agent of the master or 
  • a freight forwarder.
The party that has signed the bill of lading must indicate its signing capacity.

For example, if the carrier has signed the bill of lading, then it must be indicated on the bill of lading (B/L) that it has been signed by the carrier.


Likewise if the master has signed the bill of lading, then it must be indicated on the bill of lading that it has been signed by the master.

Shipped on board and clean on board bill of lading

I would like to explain the difference between shipped on board bill of lading and clean on board bill of lading on this page. 

The reason I would like to write about this topic is that some issuing banks demand "shipped on board" bills of lading, whereas others demand "clean on board" bills of lading under "letters of credit" payments.

Exporters are getting confused, when carriers issue a "shipped on board" bill of lading where the letter of credit requires a "clean on board" bill of lading or vice versa.


What does shipped on board mean on a bill of lading?

Bill of lading is a traditional transport document, which has been issued by the carriers for sea shipments that has been taken place between one sea port to another.

Historically, there are two main types of bills of lading available on the market in terms of scope of issuance.
  • Received for shipment bills of lading 
  • Shipped on board bills of lading
Today I would like to explain the meaning and function of an on board bill of lading and received for shipment bill of lading.

What is the transit time between Busan Port and Gothenburg Port?

Port of Gothenburg is not one of the top 100 biggest container ports in the world, but it plays very important role in Sweden's international trade. 


Gothenburg Port Authority describes the importance of the port to Sweden as follows: 

"Sea transport is used for 90 per cent of the Sweden's imports and exports. Around a third of foreign trade passes through the Port of Gothenburg as it is the only port in Sweden with the capacity to receive the very largest ocean-going container vessels."  
"The fact is that every day every Swedish person touch something that has passed through the Port of Gothenburg."
Busan Port is one of the biggest container ports in the world. It is the number 1 container port of South Korea and 5th biggest container port of the world by handling 17.6million TEU in 2013.

How long does it take for a container vessel to come from Busan Port, South Korea to Gothenburg Port, Sweden?

Today I would like to explain the transit time between Busan Port, South Korea and Gothenburg Port, Sweden.