Chapter 22: What Are The Best Incoterms In Freight Shipping for Socks? 

What Are Incoterms?

The specific terms explain the responsibilities of the shipper and the buyer involved for a domestic or international shipment.
For example, if you have a door-to-door shipment the cargo is picked by a truck from a supplier and dropped at the warehouse (of freight forwarder), transported to the port, delivered to the destination, and the same process is repeated at another end.
The delivery and insurance cost is usually very high, now who will pay these charges for both sides (origin to port and port to destination) or one side respectively? This is the point where incoterms are involved.
Incoterms state who is responsible for the insurance/ accidental loss or damage from origin to the port and port to the destination.
There are four main incoterms:
➔FOB
➔CFR
➔EXW
➔DDP

FOB

FOB is abbreviated as Free Onboard Shipping. In FOB all the responsibilities are on the buyer once the cargo leaves the shipping dock of the shipper. It is highly recommended as you will be in charge of freight costs and shipment costs of your shipment.

CFR

CFR abbreviated as Cost And Freight is considered most useful when you are involved in international shipping. In CFR you will be responsible till the cargo hits the foreign port. If you have a connection with suitable freight forwarders they will take care of everything from that end to the destination quickly and affordably. You as an exporter will charge the rates from the client for export charges.

EXW

Importers will be responsible for transportation and will be responsible for paying for transportation and insurance. As an exporter, you will have to lose all the control over the collection, transit, and delivery. But this is the best for new sellers that do not have any experience in international shipping.

DDP

Delivery Duty Paid (DDP) is the exact opposite of EXW. In DDP all the charges related to transport and insurance have to be paid by the exporter and he has all the command on the cargo at every point. This is the best option if you are first time buying products from an international supplier and don't have any experience in international shipping.


Custom Socks FAQ: 1. Process | 2. Manufacturing | 3. Shipment | 4. Timing | 5. Designs | 6. Size | 7. Accessories | 8. Maintainance | 9. Fold | 10. Carton | 11. Cost | 12. Samples | 13. Payment | 14. Volume | 15. HS Code | 16. Taxes | 17. DTD | 18. Freight | 19. Save | 20. Addition | 21. Courier | 22. Incoterm | 23. Track | 24. Import | 25. Insurance | 26. Clearance | 27. Why