Difference between Multimodal and Intermodal Shipping

First, let’s start off with a few definitions:
Multimodal: Multimodal transport (also known as combined transport) is the transportation of goods under a single contract, but performed with at least two different means of transport; the carrier is liable (in a legal sense) for the entire carriage, even though it is performed by several different modes of transport (by rail, sea and road, for example). The carrier does not have to possess all the means of transport and in practice usually does not; the carriage is often performed by sub-carriers (referred to in legal language as “actual carriers”). The carrier responsible for the entire carriage is referred to as a multimodal transport operator, or MTO.
Read More

Differences between an International Freight Forwarder and an NVOCC

This post describes the main differences between an international freight forwarder and an NVOCC according to the Federal Maritime Commission (FMC) of the United States. Most of the information in this post is taken from the FMC’s own website.

Ocean Transportation Intermediaries (OTIs) are either Ocean Freight Forwarders or Non-Vessel-Operating Common Carriers and are regulated by the FMC pursuant to the Shipping Act of 1984.

Read More

What are Incoterms?

We’re going to take a look at Incoterms—what they are and how they originated. Next time, we’ll discuss how to apply Incoterms, how exporters benefit from them, and why they matter, so stay tuned!

What are Incoterms, and who uses them?
International Commercial Terms are the official International Chamber of Commerce (ICC) rules that explain trade terms. They are a voluntary, authoritative, globally-accepted and adhered-to text for determining the responsibilities of buyers and sellers for the delivery of goods under sales contracts for domestic and international trade. Incoterms closely correspond to the U.N. Convention on Contracts for the International Sales of Goods. Incoterms are known and implemented by all major trading nations.
Incoterms are only part of the whole export contract. They don’t say anything about the price to be paid or the method of payment that is used in the transaction. Furthermore, Incoterms don’t deal with the transfer of ownership of the goods, breach of contract, or product liability; all of these issues need to be considered in the contract of sale. Also, Incoterms can’t override any mandatory laws.

Read More