11-1 CHAPTER 11 TRANSPORTATION 11-2 CHAPTER 11TRANSPORTATION Topics for this chapter: Trade Terms Transportation Inland Carriage Carriage of Goods by Sea Charterparties Maritime Liens Maritime Insurance Carriage of Goods by Air 11-3 Trade Terms Trade terms are standardized terms used in sales contracts that describe the time, place, and manner of the transfer of goods from the seller to the buyer. Incoterms are the most widely used trade terms published by the International Chamber of Commerce. Port Santos, Brazil during offloading of containers. The risk of loss for these goods depends upon the trade terms used. Photo: Lic Public domain : 11-13 Transportation Handling of goods from seller to buyer: Inland carrier picks up goods at seller’s place of business Delivery to warehouse or port depository for customs examination Stevedore company or ship’s crew loads goods and bill of lading issued to shipper. Buyer produces bill of lading and crew unloads ship onto dock. Stevedore delivers goods to customhouse or bonded warehouse. Taxes or duties paid and goods released to inland carrier for transport to buyer. 11-14 Freight Forwarders A freight forwarder is a firm that makes or assists in the making of shipping arrangements. A full-service freight forwarder can help with: Obtaining quotations on CIF and C & F contracts Determining the availability of ships and facilities Estimating cost based on weight, cubic feet, value Booking space (on ships or in warehouses) Procuring export license Reviewing letter of credit terms Prepare documents and authenticate invoices Obtain insurance and certificates of origin Present drafts for payment 11-15 Inland Carriage It is common for the seller to arrange inland carriage. The carrier will then transfer the goods to a freight forwarder at a seaport or airport. Several regional agreements regulate transport by road and rail. In Europe, road transpo