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In cooperation with international shipping companies, these trade methods must be understood

  • Author:Anma
  • Release Date:2019-09-19
In international trade, we all know that if we choose to cooperate with international freight companies and let the freight forwarders help to transport our goods for export, then before we hand over the goods to the international freight company, we have to do it with the international freight company. Communicate the inquiry, and summarize the basic information of our goods to the international freight company, such as: product name, weight, volume, quantity, destination country and other relevant information. However, when we work with international shipping companies, we have a small detail that we must understand. What we need to know is the most common trade methods in international trade.

与国际货运公司合作,这几种贸易方式必须了解
The first trade method is FOB. FOB is also the price on board. The popular point of explanation is that when the foreign customer has already designated the relevant cooperative international freight company, at this time, we only need to contact the shipping method according to the international shipping company's contact information provided by the customer, and only need to arrange the shipping port as the delivery party. And the work of customs declaration. The second trading method is EXW. EXW is the ex-factory price, and the ex-factory price is the price of the goods without shipping. This type of trade means that the delivery of the goods directly at the factory or at the customer's designated place is a customer arrangement, and the customer arranges the personnel to pick up the goods and deliver them at the factory. The third mode of trade is CIF. CIF is the cost plus insurance and shipping costs. The common point of this trade method is that the door to port (including the port of departure trailer + customs declaration + sea freight) is generally not covered by insurance. If the customer asks for insurance, it will be calculated according to the value of the goods. The fourth mode of trade is CIP. CIP trades in the same way as CIF, except that CIF is generally only used in maritime transport, while CIP is suitable for all modes of transport, including multimodal transport, such as air transport. The fifth trade method is DDU. DDU is a double-cleared tax payment. And DDP is double-cleared after-tax delivery (including tax). The popular point of understanding is door-to-door. It is often said that the double-clearing one-hundred-wheeled trailers + customs declaration + shipping + destination port clearance, need to be delivered to the door mainly depends on Customer demand. And we also need to pay attention to the fact that DDP must provide the value of the goods because the tax is based on the value of the goods. Therefore, when making an inquiry to an international shipping company, it is best to explain which kind of trade (FOB/CIF/DDU/DDP). If it is FOB, you need to provide: goods name / cabinet type / quantity / weight / loading address / shipping port / pay order or document. Of course, it may also be bulk cargo, and it is only necessary to provide the quantity or the volume of the package of the goods without providing the cabinet type.


If we choose to cooperate with international shipping companies, how many trade methods do you need to pay attention to when making an inquiry? Have you learned?


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Contact: Anma