It is important to understand Incoterms and their importance when executing a global supply chain. So what are Incoterms? It is a set of rules published by the International Chamber of Commerce for the interpretation of the most commonly used trade terms in international trade “International Commercial Terms”
Providing suppliers and buyers from across the globe with a common language, outlining which party is responsible and liable for the contract obligations regarding international trade. Incoterms can assist a company with identifying and mitigate risks as well as costs associated with the movement of goods.
It is important to note, that Incoterms have very different meaning to domestic shipping terms found within the United States and Canada. For example FOB origin or destination is a common North American term, but under Incoterms has a different interpretation. Ensure that as a supplier or buyer competing in a global you understand the mean of Incoterms as it pertains to your contracts. Otherwise it can become a very costly endeavour!
Where Strategic Can Help
We offer comprehensive in-house training on Incoterms. Likewise, we can also provide advice regarding Incoterms and what the impact will to your company. We look for our customers to come to us for advise early in their contract negotiation process, so that we can cooperatively determine what be suits your requirements. Involving Strategic early in the process can save you time and money in the long run.