Terms Of Shipment Incoterms

Introduction. Terms of shipment. Incoterms. Main incoterms responsibilities and obligations. Advantages of using Incoterms. Disadvantages of using Incoterms. The rules of the incoterms. Rules for any mode or modes of transport. Rules for sea and inland waterway transport. Conclusion. Sources.

What is incoterms? These are freight codes that describe the conditions of cargo transportation. Incoterms codes are used when goods are transported on international routes. Why do I need such codes? First of all, it facilitates the work of all employees in the transport sector. In the freight contract you only need to enter the appropriate code and all the contractors know how the cargo will be transported.

The goal of this paper is to analize how many incoterms are used in logistic, their descriptions, what is the main obligations and responsabilities of incoterms, advantages and disadvantages of using them in logistics field.

Logistics is a field of practical and scientific activity that includes the organization of the movement of various material objects and trade activities. This term includes quite a number of processes, such as: planning, controlling, implementing, organizing, transporting, storing, as well as purchasing raw materials, delivery for production, processing of products, delivery to the consumer of finished products, information transfer and storage.

Simply put, logistics ensures effective and efficient business planning, organization, execution and control when delivering goods and services to consumers, according to their needs, at an optimal cost, and for a fixed amount of time.

Today, thanks to logistics, cargo, goods and other material flows are successfully transported. All this benefits not only the manufacturing, logistics companies, but also the consumers themselves. Thanks to the logistics and transportation of goods, you can enjoy products from all over the world, and no matter that these products went a long way.

In order to keep the work smooth, there would be no misunderstandings about who is responsible for transportation, it takes to save time and long explanations how to transport, payments and other stuff needed in this process, is used rules called Incoterms. In this work we will find out what Incoterms are, why they are used, their advandages and disadvantages, responsabilities, obligations and what each of them means through the practice of companies and using information from scientific articles and books.

Incoterms is an abbreviation for “International Commercial Terms.” This term represents a very useful way of communication and it’s actually aimed at reducing confusion between buyers and sellers.