How a transaction runs
From the first enquiry to the closed file — what happens, in what order, and what you hold at the end of it.
Before anything else: which role
Every transaction starts by establishing which of our two roles applies, because it determines the contract, the invoice and the documents.
If we are arranging carriage for goods you have bought yourself, we act as your agent. Our invoice is for a service. Your contract for the goods is with your supplier.
If we are supplying the goods, we act as principal. Our invoice is for the goods. Your contract is with us, and the supplier’s contract is with us as well.
We state the role in writing on the offer. Nobody should have to work it out from the paperwork afterwards.
The sequence
1 — Enquiry
Goods, quantity, origin, destination, deadline and required terms. If information is missing that would change the price, we ask before quoting.
2 — Offer
Written, with the role stated, the Incoterms® 2020 rule and named place, what is included and excluded, validity of the rate, and the expected transit.
3 — Confirmation
The order or booking is confirmed in writing. Anything agreed by phone is restated in writing before it takes effect.
4 — Preparation
Collection or production scheduled, packing and marks agreed, and the document requirements of the destination confirmed while there is still time to obtain them.
5 — Departure
Export formalities completed, cargo loaded, transport document issued, and the departure confirmed with container and seal numbers where applicable.
6 — In transit
Status reported at the agreed milestones. Deviations are reported when they happen.
7 — Arrival
Arrival notice, import formalities by the licensed party, duties settled, cargo released and delivered.
8 — Close
The file is closed with the complete document set. Discrepancies and claims, if any, are raised against the responsible party with the evidence attached.
Incoterms® 2020
Every offer names one rule and one place, written in full, for example FOB Singapore Incoterms® 2020 or DAP Rotterdam Incoterms® 2020. Seven rules apply to any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP) and four apply to sea and inland waterway transport only (FAS, FOB, CFR, CIF).
The rule allocates cost, risk and certain obligations between seller and buyer. It does not transfer title, it does not set payment terms, and it does not replace the contract of sale. Where a term is ambiguous in an enquiry we ask rather than assume, because the difference between two rules can be the entire margin on a shipment.
Incoterms® is a registered trademark of the International Chamber of Commerce; we are not the owner of the mark.
Any mode of transport
Sea and inland waterway only
What you hold at the end
- The transport document — bill of lading, air waybill or rail consignment note
- Commercial invoice and packing list consistent with the cargo as shipped
- Certificates of origin and any commodity-specific certificates obtained
- Customs entries and release documentation from the destination
- Proof of delivery, and the insurance certificate where cover was arranged