What do Freight Forwarders / OTI do?

Freight Forwarder: Transport Architect

The international freight forwarder is popularly known as the "Transport Architect." Ocean freight forwarders are licensed by the Federal Maritime Commission (FMC). International air cargo agents are accredited by the International Air Transportation Association (IATA).

The freight forwarding professional advises clients of the best rates, routings and modes of transporting oods to or from any area in the world. Using the vast resources at their disposal, forwarders find the "right match" of services available so that products are moved by the most timely and cost-effective means. The large volume of freight handled by forwarders gives them advantages not always available to either individual shippers or integrated carriers.
The professional forwarder is also aware of the ever-changing regulations affecting cargo movements, such as foreign documentation requirements, hazardous materials rules, U.S. government regulations, special packaging or handling restrictions, and any applicable licensing provisions.

"Customized" services to fit the clients' operational needs are the forwarder's specialty. Forwarders coordinate arrangements for storage, pick-and-pack operations, consolidations or full-container movements as well as inland transportation to provide clients with true door-to-door service. From assisting with initial quotations or preparation of pro-forma invoices, the banking clients' documents for collection, the full-service, professional freight forwarder is the most reliable partner one can have in international trade.

INCOTERMS. Incoterms are the way the world does business. They are terms of sale that are accepted by most international traders. They are defined every ten years by the international chamber of commerce in their publication no. 461/90 "guide to incoterms 1990"? . Another publicationavailable is "incoterms for americans"? . This publication explains things from the u.s. perspective. Following are all 13 incoterms, and a brief explanation of each term. Please remember that the explanations are extremely simple, and under no circumstances should you assume that they are complete and accurate in all situations.

GLOSSARY OF TERMS

PRECARRIAGE

· TRANSPORT OF THE GOODS FROM THE SELLER'S FACILITY TO THE MAIN CARRIER'S FACILITY.
MAIN CARRIAGE
· TRANSPORT OF THE GOODS TO THE FOREIGN PORT OR POINT OF ULTIMATE DESTINATION.
ONCARRIAGE
· TRANSPORT OF THE GOODS RECEIVED FROM THE MAIN CARRIER TO THE ULTIMATE DESTINATION.

EX WORKS (EXW)

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN GOODS ARE READY FOR PICKUP
· SOMETIMES ARRANGE TO LOAD THE TRUCK, BARGE, OR TRAIN AT THE SELLER'S FACILITY

Buyer's Responsibility
· ARRANGE AND PAY FOR PRECARRIAGE
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES
· ARRANGE AND PAY FOR MAIN CARRIAGE
· ARRANGE AND PAY FOR INSURANCE
· ARRANGE AND PAY FOR IMPORT CLEARANCE INCLUDING DUTIES, TAXES, ETC.
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS FACILITY
TITLE AND RESPONSIBILITY FOR THE GOODS TRANSFERS AT THE SELLER'S FACILITY

FREE CARRIER (FCA) AT THE SELLERS PLACE

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS HAVE BEEN PICKED UP BY THE CARRIER
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE

Buyer's Responsibility
· ARRANGE AND PAY FOR PRECARRIAGE
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES
· ARRANGE AND PAY FOR MAIN CARRIAGE
· ARRANGE AND PAY FOR INSURANCE
· ARRANGE AND PAY FOR CLEARANCE INCLUDING DUTIES, TAXES, ETC.
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS FACILITY
NOTE** IF YOUR TERM OF SALE IS FCA CARRIER TERMINAL, ALL THE ABOVE APPLY EXCEPT THE SELLER IS NOW RESPONSIBLE TO ARRANGE AND PAY FOR PRECARRIAGE TO THE CARRIERS TERMINAL. TITLE AND RESPONSIBILITY FOR THE GOODS TRANSFERS AT THE CARRIER'S FACILITY.

FREE ALONG SIDE VESSEL AT A NAMED PORT (FAS)

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS HAVE BEEN PICKED UP BY THE CARRIER
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR PRECARRIAGE

Buyer's Responsibility
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES
· ARRANGE AND PAY FOR MAIN CARRIAGE
· ARRANGE AND PAY FOR INSURANCE
· ARRANGE AND PAY FOR CLEARANCE INCLUDING DUTIES, TAXES, ETC.
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS FACILITY
TITLE AND RESPONSIBILITY FOR THE GOODS TRANSFERS AS THE CARGO IS BEING LOADED ON BOARD THE VESSEL

FREE ON BOARD (FOB) VESSEL AT A NAMED PORT

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS HAVE BEEN PICKED UP BY THE CARRIER
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR PRECARRIAGE
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES

Buyer's Responsibility
· ARRANGE AND PAY FOR MAIN CARRIAGE
· ARRANGE AND PAY FOR INSURANCE
· ARRANGE AND PAY FOR CLEARANCE INCLUDING DUTIES, TAXES, ETC.
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS FACILITY

TITLE AND RESPONSIBILITY FOR THE GOODS TRANSFERS AS THE CARGO IS BEING LOADED ON BOARD THE VESSEL
NOTE: IN THE ABOVE "F" TERMS (FCA, FAS, FOB) THE TITLE TO THE GOODS TRANSFERS WHEN THE CARGO IS PUT ON THE MAIN CARRIAGE CARRIER. THEREFORE BOTH THE BUYER AND THE SELLER HAVE AN INTEREST IN PURCHASING INSURANCE. PLEASE MAKE SURE THE INSURANCE IS COVERED OUTSIDE THE INCOTERMS.

CARRIAGE PAID TO (CPT)

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS HAVE BEEN PICKED UP BY THE CARRIER
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR PRECARRIAGE
· ARRANGE AND PAY FOR MAIN CARRIAGE

Buyer's Responsibility
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES (IF ANY)
· ARRANGE AND PAY FOR INSURANCE
· ARRANGE AND PAY FOR CLEARANCE INCLUDING DUTIES, TAXES, ETC.
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS FACILITY

TITLE AND RESPONSIBILITY FOR THE GOODS TRANSFERS AS THE CARGO IS BEING LOADED ON BOARD THE VESSEL, AIRPLANE, OR OTHER CONVEYANCE.

COST AND INSURANCE PAID (CIP)

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS HAVE BEEN PICKED UP BY THE CARRIER
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR PRECARRIAGE
· ARRANGE AND PAY FOR MAIN CARRIAGE
· ARRANGE AND PAY FOR INSURANCE

Buyer's Responsibility
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES (IF ANY)
· ARRANGE AND PAY FOR CLEARANCE INCLUDING DUTIES, TAXES, ETC.
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS FACILITY

TITLE AND RESPONSIBILITYFOR THE GOODS TRANSFERS AS THE CARGO IS BEING LOADED ABOARD THE VESSEL, AIRPLANE OR OTHER CONVEYANCE

COST AND FREIGHT (CFR)

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS HAVE BEEN PICKED UP BY THE CARRIER
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR PRECARRIAGE
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES (IF ANY)
· ARRANGE AND PAY FOR MAIN CARRIAGE

Buyer's Responsibility
· ARRANGE AND PAY FOR INSURANCE
· ARRANGE AND PAY FOR CLEARANCE INCLUDING DUTIES, TAXES, ETC.
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS FACILITY

TITLE AND RESPONSIBILITY FOR THE GOODS TRANSFERS AS THE CARGO IS BEING LOADED ON BOARD THE VESSEL.

COST, INSURANCE AND FREIGHT (CIF)

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS HAVE BEEN PICKED UP BY THE CARRIER
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR PRECARRIAGE
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES (IF ANY)
· ARRANGE AND PAY FOR MAIN CARRIAGE
· ARRANGE AND PAY FOR INSURANCE

Buyer's Responsibility
· ARRANGE AND PAY FOR CLEARANCE INCLUDING DUTIES, TAXES, ETC.
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS FACILITY

TITLE AND RESPONSIBILITY FOR THE GOOD TRANSFERS WHEN THE GOODS ARE BEING LOADED ON BOARD THE VESSEL.

DELIVERED AT FRONTIER (DAF)

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS HAVE BEEN PICKED UP BY THE CARRIER
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR PRECARRIAGE

Buyer's Responsibility
· ARRANGE AND PAY FOR CLEARANCE INCLUDING DUTIES, TAXES, ETC.
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS FACILITY

**NOTE THERE IS NO MENTION OF MAIN CARRIAGE BECAUSE USUALLY UNDER DAF TERMS, THE PRECARRIAGE IS TO THE FOREIGN BORDER, AND THE SELLER ACCEPTS THE GOODS AT THAT POINT.
TITLE AND RESPONSIBILITY FOR THE GOOD TRANSFERS WHEN THE GOODS ARE DELIVERED AT THE FOREIGN BORDER

DELIVERED DUTY UNPAID (DDU)

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS HAVE BEEN PICKED UP BY THE CARRIER
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR PRECARRIAGE
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES (IF ANY)
· ARRANGE AND PAY FOR MAIN CARRIAGE
· ARRANGE AND PAY FOR INSURANCE
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS BUYER'S FACILITY

Buyer's Responsibility
· ARRANGE AND PAY FOR CLEARANCE INCLUDING DUTIES, TAXES, ETC.

TITLE AND RESPONSIBILITY FOR THE GOOD TRANSFERS WHEN THE GOODS ARE DELIVERED TO THE BUYER'S FACILITY

DELIVERED DUTY PAID (DDP)

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS HAVE BEEN PICKED UP BY THE CARRIER
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR PRECARRIAGE
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES (IF ANY)
· ARRANGE AND PAY FOR MAIN CARRIAGE
· ARRANGE AND PAY FOR INSURANCE
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS BUYER'S FACILITY
· ARRANGE AND PAY FOR CLEARANCE INCLUDING DUTIES, TAXES, ETC.

Buyer's Responsibility
· RECEIVE THE GOODS

TITLE AND RESPONSIBILITY FOR THE GOOD TRANSFERS WHEN THE GOODS ARE DELIVERED TO THE BUYER'S FACILITY

DELIVERED EX SHIP (DES)

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS ARE TO ARRIVE AT THE PORT OF DISCHARGE
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR PRECARRIAGE
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES (IF ANY)
· ARRANGE AND PAY FOR MAIN CARRIAGE

Buyer's Responsibility
· ARRANGE AND PAY FOR VESSEL UNLOADING
· ARRANGE AND PAY FOR CLEARANCE INCLUDING DUTIES, TAXES, ETC.
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS FACILITY

DELIVERED EX QUAY (DEQ)

Seller's Responsibility
· MAKE SURE THE GOODS ARE PACKAGED CORRECTLY FOR EXPORT
· NOTIFY THE BUYER WHEN THE GOODS ARE TO ARRIVE AT THE PORT OF DISCHARGE
· LOAD THE TRUCK, TRAIN OR BARGE AT HIS FACILITY
· ARRANGE AND PAY FOR EXPORT CLEARANCE
· ARRANGE AND PAY FOR PRECARRIAGE
· ARRANGE AND PAY FOR MAIN CARRIAGE LOADING CHARGES (IF ANY)
· ARRANGE AND PAY FOR MAIN CARRIAGE
· ARRANGE AND PAY FOR VESSEL UNLOADING
· ARRANGE AND PAY FOR IMPORT CLEARANCE

Buyer's Responsibility
· ARRANGE AND PAY FOR DUTIES, TAXES, ETC.
· ARRANGE AND PAY FOR ONCARRIAGE TO HIS FACILITY