These terms are used in contracts to determine who is responsible for executing certain aspects of the shipping and logistics process, who is responsible for paying for certain aspects of shipping, and at what point these responsibilities and accountabilities change hands. The first version of Incoterms was published in 1936, and they have been revised in the years of 1963, 1967, 1976, 1980, 1990 and 2000 according to the changes in foreign trade needs. The latest version of Incoterms in use today is Incoterm 2010. When other parties are included in shipping, a small misunderstanding can cause big confusions. Incoterms are helpful to reduce the risk volume affiliated with the shipping and logistics process.
Knowing, or at least being familiar with, the terms of a shipping contract can be highly beneficial for any large or valuable shipment. If the parties don’t understand anything about a particular contract, the process of shipping and logistics can hold just as much, or more, risk of loss as transaction risk. Commonly, agreements are made between companies and various intermediaries involved in shipments, and agreements are formed to increase a particular party’s revenues by referring the shipments paid for by the other party to specific carriers. Having knowledge about the risks of a particular contract, and having Incoterms involved, is critical. Whether you’re a buyer or seller, estimating costs for international transport also puts you in charge of choosing a freight forwarder, shipping routes, times, and other details that allow you to fine-tune all costs so you can compete to be in a particular market. At the end of the day, cost and control are key elements for picking the best Incoterm for your shipment.
Our deep understanding of your industry, built on many years of experience, has enabled us to deliver solutions that reduce risk and costs: EFK World Logistics is a unique and qualified collective of global specialists in handling time critical shipments at a moment’s notice and focusing on the Aerospace and maritime industry sectors.
We deliver excellence within Africa /worldwide, from where you are now to where you want to be tomorrow. Your business is our motivation and your success is our goal. We focus on the critical assets of people, skills and accessibility.
Why Logistics is Important Although many small businesses focus on the design and production of their products and services to best meet customer needs, if those products cannot reach customers, the business will fail. That’s the major role that logistics plays. But logistics also impacts other aspects of the business, too. The more efficiently raw materials can be purchased, transported, and stored until used, the more profitable the business can be. Coordinating resources to allow for timely delivery and use of materials can make or break a company. And on the customer side, if products cannot be produced and shipped in a timely manner, customer satisfaction can decline, also negatively impacting a company’s profitability and long-term viability.