Incoterms are the Internationally recognised terms of business for overseastrading.Theirintention is to help traders ensure that they understand exactly what they are agreeing to deliver or receive as a result of their negotiated contract.

Unfortunately, Incoterms are not completely foolproof and there are still times when you need to clarify instructions!

We recently had a customer who purchased an order on an FCA, Montreal Port basis. They instructed the supplier to advise us once the shipment was ready so that we could make a booking and arrange the shipment.

Unfortunately the supplier decided to use their own Forwarder to arrange the shipment to the UK. This not only cost the Customer more for the shipping but because the UK Freight Forwarder did not get in contact quickly with us, the goods were not cleared through Customs and they ended up having to pay rent on the goods.

As they are going to be importing more of these products, they have gone back to the Canadian Supplier and will make sure that the next shipment is handled correctly.

It’s always worth making sure with your supplier that they completely understand what you want and get it confirmed!  We are always here if you need help or advice.