Since the buying and selling processes of countries with each other are carried out in the global arena, they are called international trade or foreign trade activities. Delivery forms determined by ICC to be used in foreign trade are expressed within the scope of INCOTERMS (International Trade Terms). Foreign trade delivery methods have emerged within the scope of some questions that need to be answered in trade activities.
To summarize these questions briefly as follows;
- Where will the products be delivered?
- Who will bear the transportation costs of the products?
- Will insurance or carriage contract be signed?
In line with these questions, in order to improve the experience of buyers and sellers, delivery methods in foreign trade (INCOTERMS) are determined.
For all types of transportation that are valid for international logistics and transportation operations, delivery modes are used in the international arena, regardless of sea, road, air transportation, railway. The seven modes of transportation that express a wide scope are listed as follows;
- EXW: meets the delivery at the workplace. In this form of delivery, the seller delivers the products to areas such as factories, warehouses, shops, in line with the buyer's request. All responsibility belongs to the buyer after the goods are delivered.
- FCA: It is a form of delivery that expresses free delivery to the carrier. In this way, the seller delivers the products to the carrier at the request of the buyer. When the seller completes the daily transactions, all responsibility belongs to the buyer.
- CPT: In the form of CPT, the carrier is determined by the vendor. In CPT, which means paid delivery, the seller is obliged to complete all transactions for export.
- CIP: In the form of CIP transportation, which is delivered with the transportation fee and insurance paid, the seller makes a transportation contract in line with a carrier determined by her and ensures that the products reach the buyer undamaged.
- DPU: In the form of DPU transportation, which means delivery with unloaded goods at the specified place, the seller delivers the products to a port or terminal requested by the buyer by unloading them from the transportation vehicle. The seller is responsible for making the contract of carriage and covering the costs.
- DAP: In the form of DAP transportation, which means delivery at the specified place, the seller covers the costs and ensures the delivery of the products at the requested sales point without unloading them from the transportation vehicle.
- DDP: In the form of DDP transportation, which means delivery with customs duty paid, the seller delivers the products to the requested location for import and export transactions with customs duties paid.
Among the logistics delivery modes, four are used only in maritime transport. These four delivery types are listed as follows;
- FAS: means free delivery by ship
- FOB: mode of transport means free delivery on board and is based on the seller's provision of delivery to the designated port of shipment by vessel or specified transport
- CFR: CFR means delivery including costs and freight and the seller delivers the goods on board and supplies the goods for such delivery. From the moment the products are put on the ship, the costs belong to the buyer.
- CIF: In the form of transportation, CIF means delivery including costs, insurance and freight, and the products delivered by ship are delivered to the buyer by covering the loading costs, transportation cost and insurance costs.
